Odisha simplifies apartment registration; common areas no longer under builder control

In a move expected to significantly curb discretionary control by builders and unlock long-pending apartment registrations, the Odisha government has simplified the process for registering common areas of apartment projects, fixing a flat registration fee of Rs 20,000.

The Revenue and Disaster Management Department recently issued a formal notification in this regard, amending registration procedures, paving the way for common areas to be transferred directly in the name of apartment owners’ associations.

The decision addresses a long-standing impasse that had stalled apartment registrations across the state despite the Odisha Apartment Ownership Act coming into force in 2023.

While the law recognised the collective ownership of common areas by flat buyers, ambiguity over registration fees and stamp duty had effectively frozen the process, leaving both buyers and developers caught in legal and financial uncertainty.

Under the revised framework, common areas in real estate projects will now be registered in the name of the Association of Allottees or the society formed by flat buyers, rather than remaining under the builder’s control. The government has clarified that a uniform registration fee of Rs 20,000 will apply for such transfers; a step officials say removes procedural confusion under the Registration Act of 1908.

Ownership Clarity For Flat Buyers

Real estate stakeholders say the change restores the principle of full ownership to buyers who had paid for their homes but lacked legal control over shared spaces such as staircases, corridors, parking areas and community facilities.

“No one was at ease in the earlier system,” said Bikram Panda, a real estate owner. “The customer’s money was stuck with the builder, the builder’s money was stuck with banks, and sale deeds were getting delayed because common areas could not be transferred. This clears several bottlenecks and streamlines the process.”

Flat owners echoed similar concerns, describing the earlier arrangement as deeply confusing and prone to disputes. 

“We paid for the flat, but the ownership was not being transferred to us,” said Sangram Majhi, a Bhubaneswar-based apartment owner. 

“The common space was not in the hands of society. If I have paid for the property, it should be in my name. Builders and flat owners were often disputing the same space,” he added.

According to industry estimates, hundreds of apartment projects in urban centres such as Bhubaneswar, Cuttack and Rourkela had pending registrations solely due to unresolved issues around common area transfer.

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Stamp Duty Question Still Unresolved

While the move has been widely welcomed, real estate professionals caution that the process will remain incomplete until stamp duty rates applicable to common area registration are formally notified.

“The government has done well by amending the rules, but stamp duty has not yet been clarified,” said Bimalendu Pradhan, a real estate expert. “We are hearing that a cabinet meeting is scheduled to make a decision. Once stamp duty is fixed and the registration fee remains at Rs 20,000, the transfer of common areas to associations can actually begin.”

Industry bodies argue that without a clear stamp duty structure, sub-registrars may be unable to process deeds, potentially prolonging delays despite the revised notification.

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Impact On Older Projects

Another unresolved issue relates to apartment projects completed after 2016, many of which remain unregistered due to regulatory gaps predating the 2023 law. Buyers in such projects often face difficulties in forming associations or asserting ownership over shared infrastructure.

Stakeholders have renewed calls for a structured regularisation mechanism for completed apartments, particularly where buyers have been residing for years without formal registration of common areas.