Fee fixed for transfer of common areas to apt association during flat sale deed registration in Odisha
Bhubaneswar: Paving the way for smooth sale deed registration for apartments, the revenue and disaster management department has issued a crucial notification fixing a fee for transfer of common areas in the project to the association of allottees under the Odisha Apartment (Ownership and Management) Act, 2023.
The department, through the notification, has amended the Registration Act of 1908 and inserted a portion fixing a fee of Rs 20,000 for transfer of common areas payable during execution of sale deed between the promoter and the association of allottees. The non-fixation of the fee so far has led to ambiguity and issues pertaining to property registration in the state.
The insertion of the line in the Registration Act 1908 now clearly defines the ownership of the association of allottees in the common area. According to experts, this has finally removed the confusion and will break the deadlock of sale deed registration for new projects which faced issues since May 2022.
“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,” the notification reads.
Notably, the registration of properties faced a deadlock since May 2022 when the Orissa high court directed the inspector-general of revenue to issue strict instructions to the sub-registrars to proceed with the registration only if the project follows all statutory guidelines and obtains all crucial documentation, including the occupancy certificate.
This brought the property registration process in the state to a complete standstill. Registration resumed partially in April 2024 after the enactment of the Odisha Apartment (Ownership and Management) Act, 2023. The stalemate continued thereafter, as the Registration Act of 1908 did not define the fee to be paid for transfer of common areas.
“This is a welcome step. The govt has amended the Registration Act complementing the Apartment Ownership Act. With smooth transfer of the common areas, the ownership and titleship of the association of allottees is clear. However, things are still not clear when resale will happen in the same project,” real estate expert Bimalendu Pradhan said.
Pradhan said when the transfer is done in the name of the association of allottees, the titleship and share are defined for the first individual buyer. “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,” he said.
The department, through the notification, has amended the Registration Act of 1908 and inserted a portion fixing a fee of Rs 20,000 for transfer of common areas payable during execution of sale deed between the promoter and the association of allottees. The non-fixation of the fee so far has led to ambiguity and issues pertaining to property registration in the state.
The insertion of the line in the Registration Act 1908 now clearly defines the ownership of the association of allottees in the common area. According to experts, this has finally removed the confusion and will break the deadlock of sale deed registration for new projects which faced issues since May 2022.
“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,” the notification reads.
Notably, the registration of properties faced a deadlock since May 2022 when the Orissa high court directed the inspector-general of revenue to issue strict instructions to the sub-registrars to proceed with the registration only if the project follows all statutory guidelines and obtains all crucial documentation, including the occupancy certificate.
This brought the property registration process in the state to a complete standstill. Registration resumed partially in April 2024 after the enactment of the Odisha Apartment (Ownership and Management) Act, 2023. The stalemate continued thereafter, as the Registration Act of 1908 did not define the fee to be paid for transfer of common areas.
“This is a welcome step. The govt has amended the Registration Act complementing the Apartment Ownership Act. With smooth transfer of the common areas, the ownership and titleship of the association of allottees is clear. However, things are still not clear when resale will happen in the same project,” real estate expert Bimalendu Pradhan said.
Pradhan said when the transfer is done in the name of the association of allottees, the titleship and share are defined for the first individual buyer. “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,” he said.
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