Bhubaneswar: To safeguard the interests of homebuyers, Odisha Real Estate Regulatory Authority (ORERA) has introduced new project closure guidelines for promoters to follow for executing sale deeds with buyers.
For plotted schemes, the promoter or developer shall have to produce a completion certificate under section 2 (q) of the Real Estate (Regulation and Development) Act, 2016, to ensure that a project is completed as per the approved plan and specifications, and is fit for occupation.

Similarly, in case of a housing project, the promoter will have to submit the occupancy certificate, copy of formation of association of allottees and a undertaking that the sanctioned layout and common areas are handed over to the association. An occupancy certificate is a document issued by the local authority certifying that the building is safe and habitable.
The formation of association of allottees is necessary for the smooth functioning and maintenance of the project after its completion. The promoters will also have to submit a copy of deed of transfer of the common areas and facilities and also transfer the corpus fund if any to the association of allottees for maintenance.
“Once the project is complete in all respects, money lying in the RERA designated account will be kept as security money for the next five years to meet expenses for rectification of structural defects within five years of handing over possession of the property,” the ORERA notification read.
Real estate experts have welcomed the move, citing that it will help homebuyers. “In the absence of a project closure policy, developers had created a monopoly. These new guidelines can keep a check on developers and make them follow a strict timeline for completion of a project,” said Bimalendu Pradhan, a real estate expert.
He said the new guidelines will bring more transparency and accountability in the real estate sector, and will protect the interests of homebuyers.
“It will also ensure that projects are completed on time and as per the approved plan and specifications. The transfer of common areas and facilities to the association of allottees will ensure their proper upkeep,” Pradhan said.

We also published the following articles recently