Apartment registration process simplified in Odisha; homebuyers to benefit in numerous ways

In a major move to simplify the apartment registration process and reduce financial burden on homebuyers, the Odisha government has amended the Indian Stamp Act, 1899. The proposal in this regard has been approved by the State Cabinet, marking a significant reform in the real estate and housing sector.

Under the revised provisions, the Association of Allottees will be required to pay a nominal stamp duty of Rs 50,000 for the execution of documents related to the registration of common areas and shared facilities of an apartment complex. This is a substantial relief compared to the earlier provision, under which the association was required to pay stamp duty at the rate of 5 per cent.

As per the new arrangement, during the subsequent sale of individual apartment units, stamp duty at the rate of 5 per cent will be levied proportionately on the undivided share of common areas and facilities along with the apartment unit.

Earlier, the higher stamp duty imposed on associations often created disputes among apartment owners and developers, leading to delays and complications in the registration process. The amendment is expected to remove such ambiguities and streamline procedures.

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The state government believes the reform will encourage transparency, ease of doing business, and faster registration of apartments, benefiting both homebuyers and the real estate sector as a whole.