Govt simplifies stamp duty for common area registration in apartments
Bhubaneswar: In a major relief for apartment owners across Odisha, the state govt simplified the registration process for common areas in housing complexes, resolving a long-standing deadlock that stalled thousands of property registrations.
Under the Odisha Apartment (Ownership and Management) Act, 2023, developers are mandated to transfer common areas and facilities such as corridors, lifts, and community spaces to the Association of Allottees at the time of executing the first deed of conveyance.
However, this requirement came with a hefty 5% stamp duty, which associations had to bear upfront. The financial burden proved prohibitive for many, leading to widespread delays and incomplete registrations across the state.
For years, apartment buyers were left in limbo, unable to register their individual units due to the unresolved status of common area ownership. Legal ambiguities and cost barriers discouraged developers and associations from initiating the process, sources said.
Now, in a decisive move, the Odisha Govt amended the Indian Stamp Act, 1899, by inserting a new clause. This change introduces a fixed stamp duty of Rs 50,000 for the registration of common areas and facilities, regardless of the property’s market value.
Individual apartment buyers will continue to pay the standard 5% stamp duty on their unit’s value, which includes their undivided share in the common areas, but the cost for the associations was reduced, paving the way for smoother, faster registrations.
“This reform removes a major hurdle in apartment ownership and empowers residents to take legal control of their shared spaces,” said a senior official from the housing and urban development department.
Officials said the move is expected to unlock thousands of pending registrations, boost transparency in property transactions, and strengthen the legal standing of apartment associations in managing their premises.
On Dec 18 last year, the revenue and disaster management department also issued a notification fixing a consolidated fee of Rs 20,000 to be paid at the time of registration for the transfer of common areas to the Association of Allottees.
Through the notification, the department amended the Registration Act of 1908, easing the way in apartment registration under the Odisha Apartment (Ownership and Management) Act, 2023. The amendments to all these Acts now ease registration, sources said.
“The fixing of the fees for registration of common areas under the Registration Act a few days back and the decision in the Stamp Act now will lead to smooth registration of apartment projects to a large extent,” real estate expert Bimalendu Pradhan said.
Under the Odisha Apartment (Ownership and Management) Act, 2023, developers are mandated to transfer common areas and facilities such as corridors, lifts, and community spaces to the Association of Allottees at the time of executing the first deed of conveyance.
However, this requirement came with a hefty 5% stamp duty, which associations had to bear upfront. The financial burden proved prohibitive for many, leading to widespread delays and incomplete registrations across the state.
For years, apartment buyers were left in limbo, unable to register their individual units due to the unresolved status of common area ownership. Legal ambiguities and cost barriers discouraged developers and associations from initiating the process, sources said.
Now, in a decisive move, the Odisha Govt amended the Indian Stamp Act, 1899, by inserting a new clause. This change introduces a fixed stamp duty of Rs 50,000 for the registration of common areas and facilities, regardless of the property’s market value.
Individual apartment buyers will continue to pay the standard 5% stamp duty on their unit’s value, which includes their undivided share in the common areas, but the cost for the associations was reduced, paving the way for smoother, faster registrations.
“This reform removes a major hurdle in apartment ownership and empowers residents to take legal control of their shared spaces,” said a senior official from the housing and urban development department.
Officials said the move is expected to unlock thousands of pending registrations, boost transparency in property transactions, and strengthen the legal standing of apartment associations in managing their premises.
On Dec 18 last year, the revenue and disaster management department also issued a notification fixing a consolidated fee of Rs 20,000 to be paid at the time of registration for the transfer of common areas to the Association of Allottees.
Through the notification, the department amended the Registration Act of 1908, easing the way in apartment registration under the Odisha Apartment (Ownership and Management) Act, 2023. The amendments to all these Acts now ease registration, sources said.
“The fixing of the fees for registration of common areas under the Registration Act a few days back and the decision in the Stamp Act now will lead to smooth registration of apartment projects to a large extent,” real estate expert Bimalendu Pradhan said.
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