Karnataka govt unveils new apartment bill to safeguard property owners' interests

Bengaluru: The Karnataka government on Wednesday unveiled the proposed Karnataka Apartment (Ownership and Management) Bill, 2026, seeking to repeal the over five-decade-old laws and establish a unified legal framework to safeguard apartment owners' rights, streamline governance and facilitate redevelopment of ageing residential complexes.

The proposed legislation, discussed with apartment owners' associations in Bengaluru, aims to 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 realities of modern apartment living and are not fully aligned with the Real Estate (Regulation and Development) Act (RERA), 2016.

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The government said Bengaluru alone has more than 25,000 apartment buildings comprising an estimated 25-30 lakh flats, while about 60,000-75,000 flats were registered with KRERA in Bengaluru Urban and adjoining areas in the last one year, making a modern legal framework necessary.

Among the key features, the Bill will apply to apartment projects with more than eight units, bring enforcement under the Urban Development Department through a designated competent authority, and clearly vest ownership of project land and common areas with apartment owners while limiting associations to management, maintenance and administration.

The Bill also defines private area, super built-up area and calculation of undivided share, mandates structural stability certificates for buildings older than 30 years every five years, establishes a two-stage dispute resolution mechanism with appellate powers equivalent to a civil court, provides deemed conveyance of common areas in older apartment projects where transfers were not completed, and lays down a legal framework for redevelopment requiring consent from at least 75 per cent of owners and compensation of at least twice the market value for non-consenting owners.

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According to the government, the proposed law seeks to safeguard ownership rights, ensure ownership of common facilities vests with apartment owners, strengthen financial transparency, establish accountability for developers, associations and apartment owners, provide an effective dispute resolution mechanism and enable transparent redevelopment of structurally unsafe buildings.