Bhubaneswar, May 15: Apartment owners in Odisha can now legally sell their individual units after the registration of common areas under the Odisha Apartment (Ownership and Management) Act, 2023. The recent government gazette notification marks a significant step toward streamlining apartment ownership and management in the state.

Previously, the Real Estate (Regulation and Development) Act, 2016 mentioned the registration of common areas for apartments, but it had not been effectively implemented in Odisha due to the absence of clear rules regarding the formation of apartment owners’ associations.

Under the new 2023 law, apartment owners must first form an Association of Apartment Owners (AAO). Once formed, the association can apply for the registration of the common areas such as corridors, lifts, gardens, and other shared facilities under its name.

Key procedural steps include:​​​​​​​

Formation of the Association: All apartment owners collectively establish the AAO as per the legal framework outlined in the Act.

Occupancy Certificate (OC): The developer must provide an occupancy certificate confirming the completion of construction.

Declaration of Common Areas: The developer issues a declaration specifying how shared spaces and facilities are to be divided among the apartment owners.

Registration: After these steps, the association registers the common areas officially.

Real estate expert Bimalendu Pradhan explained that, unlike earlier requirements where a 5% stamp duty was payable on documents, now a fixed stamp duty of ₹50,000 is required for registering common areas.

Once the registration of common areas is complete, individual apartment owners can legally sell their units. During the sale, a 5% stamp duty will apply to the total value of the apartment, including its proportionate share of common areas, replacing the previous slab-based rates of 3%, 4%, or 5%.

Applications for registration of common areas are to be submitted to the appropriate authority depending on the location:

Within BMTC areas: Deputy Commissioner

Under BDA jurisdiction: BDA Secretary

In other districts: Sub-Divisional Magistrate

The government’s gazette notification now enables smooth registration and legal transfer of apartments, ensuring greater transparency and security for both developers and buyers in Odisha.