Odisha Govt Eases Resale Rules for Pre-2016 Apartments, Boosting Real Estate Market

BHUBANESWAR: In a significant move that brings much-needed relief to apartment owners, the state government of Odisha has clarified that apartments constructed before 2016 can now be resold with specific conditions. This decision aims to ease the difficulties faced by homeowners in registering the deed of transfer, particularly during the resale of properties after the introduction of the Odisha Apartment (Ownership and Management) Act, 2023.

As per a special order issued by the Housing and Urban Development department, the allottees or transferees are exempted from submitting the documents required under Section 8 (2) of the OAOM Act for the execution and registration of sale deeds during resale or subsequent sales of apartments whose deed of transfer was executed before October 5, 2016. However, the sale deed for the resale of apartments must clearly state that the percentage of undivided interest in the Common Areas and Facilities (CAF) is deemed to be conveyed or encumbered along with the apartment, even if such interest is not explicitly mentioned in the earlier deed of transfer or sale deed.

The order further states, 'The undivided proportionate title in the CAF appertaining to the apartment shall be deemed to be conveyed to the association of allottees, even though such undivided proportionate title is not expressly mentioned in the earlier deed of transfer/sale deed.' If any association of allottees or society was already formed under any other law before the commencement of the OAOM Act, it will be deemed valid only upon the adoption of by-laws in accordance with Section 15 of the Act.

This special order was issued based on amendments made to the provisions of the Real Estate (Regulation and Development) Act (RERA). Consequently, the Housing and Urban Development department has rescinded the notification issued by the government on February 1, 2025.

Officials have stated that this decision will provide significant relief to homeowners who have been struggling to sell older properties and will also boost real estate activities in the state. Earlier, the state government had introduced the apartment regularisation scheme, which provides a framework for the regularisation of buildings constructed without prior approval or in deviation from sanctioned plans. In a notification issued on February 1 this year, the department had allowed the registration of apartments completed before the commencement of RERA in the state, prior to February 25, 2017.

However, the Orissa High Court had stayed this notification to 'remove any ambiguity' in the application of the Odisha Apartment (Ownership and Management) Act, 2023, which clearly prohibits the registration of an apartment if it does not have an occupancy certificate and if the association of allottees of the apartment has not been formed and registered.

This new move by the Odisha government is expected to streamline the process of apartment ownership and management, making it easier for homeowners to sell their properties and for the real estate market to flourish.