Karnataka proposes law to change apartment ownership rules: Details | Personal Finance

The Karnataka government has proposed a new law that could change how apartment ownership, management and redevelopment are governed in the state. The proposed Karnataka Apartment (Ownership and Management) Bill, 2026 seeks to replace two laws that have been in force for more than five decades with a single legal framework aimed at protecting apartment owners’ rights.

 

According to PTI, the draft legislation is designed to bring greater clarity on ownership of land and common areas, improve accountability of developers and apartment associations, and simplify the redevelopment of ageing apartment buildings. The move comes as apartment living has become the dominant form of urban housing, particularly in Bengaluru.

 
 

Why is Karnataka replacing the existing laws?

 

The proposed Bill will repeal the Karnataka Apartment Ownership Act, 1972 and the Karnataka Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1972.

 

According to the Karnataka government, the existing laws no longer reflect the realities of modern apartment living and are not fully aligned with the provisions of the Real Estate (Regulation and Development) Act (RERA), 2016, PTI reported.

 

The government has also cited the rapid growth of apartment housing in Bengaluru as a key reason for introducing a new framework. According to PTI, the city has more than 25,000 apartment buildings comprising an estimated 2.5 million to 3 million flats. In addition, around 60,000 to 75,000 flats were registered with the Karnataka Real Estate Regulatory Authority (KRERA) in Bengaluru Urban and nearby areas during the past year.

 

What does the proposed Bill cover?

 

According to PTI, the proposed law will apply to apartment projects with more than eight units.

 

One of its biggest changes is that enforcement will come under the Urban Development Department through a designated competent authority instead of relying on the fragmented system under the existing laws.

 

The Bill also seeks to clearly separate ownership rights from management responsibilities.

 

Under the proposal:

• Apartment owners will legally own the project land and common areas.

• Apartment associations will be responsible only for management, maintenance and administration of the property.

• The law defines terms such as private area, super built-up area and the method for calculating an owner’s undivided share in the property.

The objective, according to the government, is to reduce ambiguity that often leads to disputes between developers, apartment associations and flat owners.

 

Structural safety gets greater attention

 

The proposed legislation also introduces provisions for ageing buildings.

 

According to PTI, apartment buildings that are more than 30 years old will be required to obtain a structural stability certificate every five years. This requirement is expected to help identify buildings that may require repairs or redevelopment before safety risks become severe.

Easier dispute resolution

 

Property disputes involving apartment owners can often take years to resolve through regular courts.

 

To address this, the proposed Bill provides for a two-stage dispute resolution mechanism. PTI reported that the appellate authority under the new framework will have powers equivalent to those of a civil court.

 

The government believes this could provide apartment owners with a faster and more specialised mechanism for resolving disputes related to ownership, maintenance and management.

Relief for older apartment projects

 

Many older apartment projects continue to face legal issues because the transfer of common areas was never formally completed.

 

According to PTI, the Bill introduces the concept of deemed conveyance, allowing ownership of common areas in such projects to be recognised even where the formal transfer process was left incomplete.

 

This provision is intended to help apartment owners secure legal ownership of common facilities without prolonged litigation.

New rules for redevelopment

 

Redevelopment of old apartment complexes has often been delayed because obtaining unanimous consent from owners is difficult.

 

The proposed Bill creates a legal framework for redevelopment of ageing or structurally unsafe buildings.

 

According to PTI:

• Redevelopment will require the consent of at least 75 per cent of apartment owners.

• Owners who do not consent must receive compensation of at least twice the market value.

The government says these provisions aim to balance the interests of the majority while protecting the financial rights of owners who choose not to participate.

What does this mean for apartment owners?

If enacted, the proposed law could bring greater legal certainty for apartment owners in Karnataka by clearly defining ownership rights and responsibilities.

According to PTI, the government says the Bill aims to:

• Safeguard apartment ownership rights.

• Ensure common facilities legally belong to apartment owners.

• Improve financial transparency.

• Increase accountability of developers, apartment associations and apartment owners.

• Create a dedicated dispute resolution mechanism.

• Enable transparent redevelopment of unsafe residential buildings.

The Bill is currently at the proposal stage and was discussed with apartment owners’ associations in Bengaluru before being taken forward. Once enacted, it is expected to replace the state’s existing apartment ownership laws with a single framework that better reflects the needs of today’s urban housing market, according to PTI.