For lakhs of apartment owners in Karnataka, a new Bill tabled in the Assembly could change who owns common areas, how maintenance is calculated, how buildings are redeveloped and how disputes within housing communities are resolved.
The Karnataka Apartment (Ownership and Management) Bill, 2026 was introduced in the Assembly on Wednesday, August 19. If passed, it will replace the Karnataka Apartment Ownership Act and the Karnataka Ownership of Flats Act, both enacted more than five decades ago.
The government says the existing framework has struggled to keep up with Bengaluru’s rapid expansion and the rise of large apartment projects, resulting in disputes over land, common areas, maintenance and association governance.
The final Bill has also undergone changes since the draft was released in July. It now says that a fully completed apartment project can have only one registered association, even if the project was developed in multiple phases.
Here is what the proposed law means for apartment owners, associations, developers and the government.
Why does Karnataka need a new apartment law?
The two existing laws were enacted in 1972, long before Bengaluru saw the scale of apartment development it has today. They do not adequately address issues such as ownership of common areas, transfer of land, formation of apartment associations, maintenance, financial accountability and redevelopment.
The existing framework also lacks a dedicated statutory authority for apartment-related disputes. Associations have been registered under different laws, creating overlapping jurisdictions and administrative confusion.
The proposed Bill seeks to bring apartment governance under one framework administered through the Urban Development Department.
It would apply to projects comprising more than eight apartments, including certain villa projects. Government buildings, properties retained under single ownership and certain plotted or villa developments are excluded.
Who owns the land and common areas?
One of the biggest changes is the proposed legal recognition of an apartment as immovable property that can be inherited and transferred.
An owner would have exclusive ownership and possession of their apartment, along with a proportionate, undivided and non-exclusive interest in the project land and common areas.
This means the apartment association would not own the common areas. Its role would primarily be to manage, maintain and administer them on behalf of the owners.
The Bill also requires promoters to disclose encumbrances on apartments and project land. Buyers would not be liable for mortgages or charges created before the transfer of the property to them.
For older projects where common areas were never formally conveyed to apartment owners, the proposed framework provides for deemed conveyance.
The Bill also takes a stricter position on community and commercial facilities than the earlier draft.
The earlier draft allowed people who were not apartment owners to use such facilities on a regular or commercial basis if two-thirds of owners present and voting approved it.
The final Bill bars people other than apartment owners from accessing community and commercial facilities on a regular or commercial basis.
The Bill also addresses an issue that could become increasingly important as Bengaluru changes its planning and development rules.
If future development potential arises because of changes in Floor Space Index, Floor Area Ratio, zoning or planning regulations, those rights would belong collectively to the apartment owners.
They would not automatically belong to the promoter merely because the builder originally developed the project.
The Bill also places restrictions on promoters converting common areas into private or saleable spaces without the consent of apartment owners.
The final Bill says there must be one registered association for every project.
This is a change from the draft presented during the July stakeholder consultation, which had proposed separate associations for projects developed in phases and a federation to manage infrastructure shared between them.
Under the final Bill, owners from completed phases must be added to the same association. Subcommittees can be formed if necessary.
The promoter must facilitate formation of the association within three months after a majority of the flats in the project are allotted. If the promoter fails to do so, the competent authority can itself cause the association to be formed and operationalised.
The executive committee will have a maximum term of two years. Members who serve two consecutive terms cannot immediately seek re-election.
The Bill also provides for a general body quorum of at least 50% of apartment owners.
If at least two-thirds of apartment owners in a project or phase submit a written request, the competent authority, with the approval of the first appellate authority, may assume and discharge the functions of the association.
Once it takes over, the competent authority can function like the association’s executive committee. It would be responsible for the administration, maintenance and management of the property, common areas and facilities.
The authority can also appoint staff to assist with the association’s affairs. The expenses would be treated as common charges and recovered from the apartment owners.
The takeover is not intended to be permanent. Control can return to the association after the prescribed period or when the authority is satisfied that the association is capable of functioning independently.
The competent authority can also appoint an administrator where an association fails to conduct elections within the required period.
The Bill seeks to settle a long-running dispute over how apartment maintenance should be divided among owners.
It proposes that maintenance charges generally be calculated according to the super built-up area of an apartment.
The Bill defines super built-up area to account for the apartment’s carpet area, external walls, balconies and its proportionate share of common areas.
The proposed law also caps the penalty imposed on an individual owner at one month’s maintenance charge.
For unpaid common expenses, an association can recover dues along with prescribed interest and costs. It can also approach the competent authority for directions.
If dues remain unpaid, the competent authority can recover them in the same manner as land revenue or property tax.
The Bill places several obligations on promoters after the project is completed.
They must file the project declaration within 60 days of obtaining the Occupancy Certificate and disclose encumbrances affecting apartments and project land.
They must also facilitate the formation of the apartment owners’ association, execute transfer deeds and hand over project documents and funds collected for maintenance, security deposits and corpus funds.
The handover must include audited statements.
Promoters must also pay maintenance charges for apartments that remain unsold.
The Bill restricts promoters from controlling or restricting the lawful use of common areas. They cannot charge for common areas except as permitted under the law or association bye-laws.
Failure to submit the required declaration, facilitate the formation of the association, execute transfer deeds or obtain an Occupancy Certificate can attract a penalty of up to Rs 1 lakh.
A further penalty of up to Rs 1,000 per day can be imposed for continuing violations.
Other violations by promoters, associations or individual owners can attract a penalty of up to Rs 20,000, with an additional Rs 1,000 per day for continuing violations.
The competent authority can also order rectification or restoration of the property.
For the first time, the proposed law creates a statutory framework for redevelopment.
Redevelopment or major structural alterations would require the written consent of at least 75% of apartment owners.
The Bill also provides for a common capital fund that can be collected from owners to finance major repairs, renovation and future redevelopment.
Earlier proposals had stated that owners who did not consent to redevelopment would receive compensation of at least twice the market value of their property. The final material provided does not set out that provision in the same form, so it should not be treated as a confirmed feature of the enacted law.
The Bill also provides for the dissolution of the executive committee during redevelopment after approval of the redevelopment scheme by the second appellate authority. Owners would then form a new committee.
Buildings that are more than 30 years old were proposed in the draft to undergo structural stability certification, with certification renewed every five years.
The final Bill’s key provisions provided here focus more broadly on redevelopment, maintenance and management. The structural-certification requirement should therefore be checked against the final notified rules or enacted text before being presented as a final obligation.
The Bill creates a dedicated dispute-resolution structure instead of requiring owners to rely primarily on civil courts.
A designated competent authority will oversee apartment associations, enquire into complaints, enforce provisions and exercise powers similar to those of a civil court.
The government must also appoint a first appellate authority and a second appellate authority.
The first appellate authority is required to dispose of appeals within 90 days, while the second appellate authority has a 30-day timeline under the proposed framework.
The Bill bars civil courts from entertaining matters that fall within the jurisdiction of these authorities.
Aggrieved parties can approach the appellate authorities and, subsequently, the High Court.
Existing associations registered under the current framework are to be recognised under the new system.
However, the final Bill requires a single registered association for every fully completed project. This means projects that currently have multiple associations could face a significant change in their governance structure.
The July draft had proposed a federation to address projects with multiple associations, but that provision has been removed from the final Bill.
The final Bill instead says that where a project is developed in phases, owners from subsequent phases will be added to the same association.
The Bill contains a transitional provision for sale agreements executed before its commencement.
If an agreement to sell a flat was executed before the new law came into force but the sale deed has not yet been executed, the new Bill would apply when the sale deed is executed.
If the sale deed has already been executed before commencement of the Act, transfer deeds for the flats in that project would continue to be executed under the laws that were in force earlier.
If the Bill becomes law, an apartment owner would have clearer statutory recognition of ownership over their flat and a proportionate interest in the land and common areas.
They would also have a more clearly defined role in decisions involving maintenance, redevelopment and management.
At the same time, owners would have obligations. They would have to pay their share of common expenses and carry out repairs promptly where damage to their apartment affects other owners or common areas.
Minor repairs would have to be addressed within five days and major repairs within 30 days. If an owner fails to act, the association can undertake the repairs and recover the cost.
Owners would also have greater responsibility for collective decision-making because major redevelopment or structural changes would require a 75% approval threshold.
The Bill has now been tabled in the Karnataka Legislative Assembly. It will have to go through the legislative process before it can become an Act. The final law could also be affected by amendments made during consideration by the legislature and by rules framed after enactment.