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The Odisha state government is preparing to introduce a new bill in the assembly to establish an association of homebuyers in real estate projects. Under the proposed Odisha Apartment Ownership Bill 2023, the association can be formed if seven persons or 50% of allottees, whichever is lower, are allotted flats in apartments. The bill seeks to replace the Orissa Apartment Ownership Act of 1982.
The new bill provides for common areas such as corridors, staircases, lifts, play areas, and the entire land of apartments to be registered in the name of buyers' associations. Under the existing 1982 Act, the common area is registered proportionately in the name of the individual buyers.
Housing and Urban Development minister Usha Devi introduced the bill in the assembly on Monday, citing the lack of provisions in the 1982 Act relating to associations of allottees and the transfer of common areas of the project in favour of such associations, which had led to litigation. The new bill is RERA-compliant and will ensure that apartments constructed after the implementation of the Real Estate (Development and Regulation) (RERA) Act, 2016, have their common areas registered in the name of buyers' associations within six months of the implementation of the new Act.
The associations formed under the bill will insure the housing project against fire, flood, cyclones, and other disasters using funds meant for common expenses. After completion of 30 years of an apartment building, the association has to get the structural safety of the building tested by a certified structural safety engineer. The association must then carry out a similar inspection every five years.
The bill has been introduced in response to a series of petitions in the Orissa high court challenging the existing state laws as contravening the RERA Act. The court has urged the government to introduce RERA-compliant laws.
If passed, the bill will provide buyers with a greater say in managing their apartment complexes and ensure that their interests are better protected. It will also ensure that the association of buyers has greater control over the maintenance and upkeep of common areas, which is essential for the longevity of any housing project. The association can also take steps to ensure that the builder adheres to the promised quality standards and delivers the project within the agreed timeframe.
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