In a significant move to streamline property registrations, the Odisha government has issued a crucial notification fixing a definitive fee for the transfer of common areas in apartment projects to the association of allottees. This step is expected to resolve a prolonged deadlock that had hampered the registration of sale deeds for new apartments across the state.
Breaking the Registration Deadlock
The Revenue and Disaster Management Department has amended the century-old Registration Act of 1908 to insert a specific clause. The amendment mandates a fixed fee of Rs 20,000 for the registration of the conveyance deed executed by a promoter for transferring common areas and facilities to the association of allottees. This applies specifically under the provisions of the Odisha Apartment (Ownership and Management) Act, 2023.
The notification states: "In Article-A, in Part-I, in clause-1, after sub-clause 1-C of the Table of Fees, the following sub-clause shall be inserted, namely: ‘1-D’ - Fees for registration of the deed of conveyance executed by the promoter involving transfer of common areas and facilities in favour of the association of allottees to which the Odisha Apartment (Ownership and Management) Act, 2023 applies, shall be a fixed fee of Rs 20,000."
Background of the Stalemate
The lack of a defined fee had created ambiguity and operational issues since May 2022. At that time, the Orissa High Court directed the inspector-general of revenue to instruct sub-registrars to proceed with registrations only if projects complied with all statutory guidelines and possessed crucial documents like occupancy certificates. This directive brought the property registration process in the state to a virtual standstill.
A partial resumption occurred in April 2024 following the enactment of the Odisha Apartment Act. However, the stalemate persisted because the Registration Act of 1908 did not specify the fee payable for the critical transfer of common areas, leaving the legal process incomplete.
Expert Views and Remaining Questions
Real estate experts have welcomed the notification as a necessary step to complement the new Apartment Ownership Act. Bimalendu Pradhan, a real estate expert, called it a "welcome step" that clarifies ownership and titleship for the association of allottees upon the initial sale.
However, Pradhan pointed out an unresolved issue. "When the transfer is done in the name of the association of allottees, the titleship and share are defined for the first individual buyer," he explained. He raised a critical question: "When the resale happens, would the titleship go to the second buyer or would it still remain with the first buyer? This needs to be clarified again, which this notification did not mention."
Despite this lingering concern, the government's intervention is seen as a major breakthrough. By clearly defining the fee and the process, it removes a key administrative hurdle, paving the way for smooth sale deed registration for new apartment projects and providing much-needed clarity to promoters and homebuyers alike.
