The Karnataka government has proposed a comprehensive overhaul of the legal framework governing apartments in the State by introducing the Karnataka Apartment (Ownership and Management) Bill, 2026, which seeks to repeal two five-decade-old laws and bring apartment ownership, management, and redevelopment under a single piece of legislation. The bill will be tabled in the upcoming monsoon session starting from August 6.
The major overhaul has been proposed in terms of fixing the competent authority, the safety of older apartment complexes, dispute resolution, and accountability.
The proposed bill will replace the Karnataka Apartment Ownership Act, 1972, and the Karnataka Ownership Flats (Regulation of the Promotion of Construction, Sale, Management, and Transfer) Act, 1972, which the government said no longer address the complexities of modern apartment housing.
“The existing laws have led to prolonged litigation, uncertainty for homebuyers, and disputes between promoters and apartment owners. Several provisions of those laws also overlap with the Real Estate (Regulation and Development) Act (RERA),” said Tushar Giri Nath, Additional Chief Secretary, Urban Development Department.
The proposed legislation will apply to apartment projects with more than eight units. One of the key provisions of the bill is the assignment of a competent authority to oversee the proposed act, which was previously not established. The proposed bill will be implemented by the Urban Development Department (UDD).
Another major inclusion is the transfer of ownership of project land and common areas to apartment owners. While apartment associations will continue to manage and maintain common facilities, ownership of these areas will have to be transferred to the apartment owners. The bill also provides clarity on the calculation of the undivided share of land attached to each apartment.
It also seeks to fix the calculation of maintenance costs that need to be paid by the apartment owners, which is now divided equally among everyone.
The bill introduces mandatory structural safety audits for ageing apartment buildings. Apartment complexes that are more than 30 years old will have to submit a structural stability certificate, with fresh certification required every five years thereafter. It also creates a common capital fund through contributions from apartment owners to finance major renovations and redevelopment works. However, redevelopment can only be taken up when 75% of the flat owners consent to it.
“Owners who do not consent to redevelopment will be entitled to compensation of at least twice the prevailing market value of their property,” the bill says.
To resolve disputes, the legislation proposes a dedicated dispute resolution mechanism with a two-stage appellate system. Both the competent authority and the appellate authority will be vested with powers equivalent to those of a civil court. Thereafter, apartment owners can move the court.
It mandates the formation of an association of allottees within three months of more than 50% of apartments in a project being booked. Existing apartment associations registered under the current law will automatically be recognised as associations under the new legislation. The upcoming associations will automatically be formed and governed as per the new law.
In many instances earlier, association members were held responsible in cases of accident, which are now streamlined, and specific accountability has been fixed.
The proposed law also specifies the responsibilities of promoters, including handing over original project documents, facilitating the formation of associations in accordance with RERA, maintaining common areas until associations are formed, and transferring unpaid funds to the association.
Flat owners, meanwhile, will be required to comply with association bye-laws, pay maintenance charges and capital contributions, maintain their flats, and avoid any alterations that compromise the structural safety of the building.
Apartment associations will be responsible for maintaining common areas and buildings, ensuring structural safety, maintaining accounts and records, preparing and registering bye-laws, and obtaining the approval of at least 75% of the apartment owners before undertaking any modifications to common facilities.
The UDD will have powers to inquire into complaints, approve bye-laws, register and regulate apartment associations, resolve disputes, and ensure compliance by promoters, associations, and apartment owners. They may also take over the functioning of an association if more than two-thirds of apartment owners submit a written request.
The bill also proposes the constitution of a State consultation and advisory committee comprising representatives of apartment owners’ associations, federations, and State government officials to advise on matters relating to apartment governance.
The government has invited suggestions from the stakeholders through email at [email protected].
Published - July 15, 2026 09:04 pm IST