Karnataka Proposes New Apartment Law Covering Ownership, Management and Redevelopment

The Karnataka Government has released the draft Karnataka Apartment (Ownership and Management) Bill, 2026 for public consultation. The proposed legislation seeks to replace the Karnataka Apartment Ownership Act, 1972 and the Karnataka Ownership Flats Act, 1972, introducing a unified legal framework for apartment ownership, governance, maintenance, financial accountability and redevelopment across the state.

Key Details:

• The proposed law will apply to apartment projects with more than eight units, including certain phased developments and villa projects.

• Apartment owners will hold:

Exclusive ownership of their apartment.

• A proportionate undivided share in the land.

• Collective ownership rights over common areas and facilities.

• The Bill introduces a formula for calculating the undivided share (UDS) based on defined built-up areas.

• Open, stilt, basement and podium parking forming part of common areas cannot automatically be sold as private property. Only approved and separately registered enclosed parking spaces may qualify as private units.

• Promoters must facilitate formation of an apartment association within three months after the majority of apartments are allotted.

• Existing apartment associations can continue but must align their bye-laws and registration details with the new law.

• Promoters will be required to hand over project documents, approvals, audited accounts, maintenance funds and management of common areas to the association.

• Maintenance charges are proposed to be apportioned based on the super built-up area of each apartment.

• Essential services such as water, electricity, sanitation, lifts and fire safety systems cannot be disconnected for non-payment of maintenance dues.

• Apartment associations will be required to maintain audited accounts, insure common property and ensure compliance with sanctioned building plans.

• Buildings completing 30 years must undergo mandatory structural stability assessments, with follow-up inspections every five years if found safe.

• Redevelopment may proceed with the written consent of 75% of apartment owners, while non-consenting owners may opt for monetary compensation as prescribed under the Bill.

• Future FAR, FSI and development rights are proposed to belong collectively to apartment owners unless lawfully transferred.

• A Competent Authority will oversee apartment associations, resolve disputes and enforce compliance, with a two-level appellate mechanism before appeals to the High Court.

• The Bill also proposes limiting civil court jurisdiction over matters assigned to the Competent Authority

**Why It Matters:
**The proposed legislation aims to modernise Karnataka’s apartment laws by addressing issues related to common-area ownership, apartment association governance, maintenance, redevelopment of ageing buildings, financial transparency and dispute resolution. With apartment living becoming a dominant housing model, particularly in Bengaluru, the Bill is expected to have a significant impact on apartment owners, resident welfare associations, developers and housing projects across the state.

**Current Status:
**The Karnataka Apartment (Ownership and Management) Bill, 2026 is still a draft and has not become law. The Government has invited feedback from stakeholders before finalising the legislation. A stakeholder consultation was scheduled in Bengaluru on 15 July 2026.