Karnataka Apartment (Ownership and Management) Bill, 2026: Key Features

The Bill covers apartment ownership, common area management, promoter obligations, dispute resolution and penalties across residential projects in Karnataka. Below is a provision-by-provision breakdown of its key features.

Applicability and Scope

The Bill applies primarily to projects comprising more than 8 apartments, including specified villa projects and developments in approved layouts, subject to prescribed exclusions.

Apartment Ownership and Undivided Share

Each apartment is recognised as heritable and transferable immovable property and may be sold, mortgaged, leased, gifted, exchanged or otherwise transferred.

Ownership of an apartment includes a proportionate undivided and non-exclusive interest in the project land and common areas, generally calculated based on the apartment’s private area.

Common Areas and Parking

What Counts as a Common Area

Common areas include the following facilities meant for shared use:

• Staircases, lifts and corridors
• Terraces and basements
• Parks and gardens
• Common parking and internal roads
• Utilities, water and sewage systems
• Fire-safety installations
• Other facilities designated for common use

Parking Rules

Common parking cannot be independently sold or transferred. Private parking is recognised only where it is an approved, enclosed or demarcated built-up area forming part of the sanctioned plan and conveyed through a registered instrument.

Project Declaration and Deed of Transfer

Project Declaration

The promoter must submit a declaration to the Competent Authority within 60 days of issuance of the Occupancy Certificate. The declaration must contain details of the land, title, plans, apartments, common areas, undivided interests, permitted use and encumbrances.

Deed of Transfer

The promoter must execute and register a deed transferring the apartment together with its corresponding undivided interest in the land and common areas.

Encumbrances and Disclosure

Mortgages and charges affecting the project must be disclosed. An apartment affected by a promoter’s mortgage or charge cannot be conveyed without the requisite release or no-dues certificate.

Additional Development Rights

Future development potential arising from changes in FSI, FAR, zoning or planning regulations belongs collectively to the apartment owners, generally in proportion to their private areas.

Apartment Owners’ Association

A single association is contemplated for each project. It becomes a body corporate with perpetual succession and is responsible for management and administration of the project.

Maintenance and Expenses

The association is responsible for maintaining common areas and ensuring compliance with the sanctioned plan and Occupancy Certificate. Maintenance dues constitute a charge on the apartment and its appurtenant undivided interest.

Accounts, Audit and Insurance

The association must maintain proper accounts and bank accounts, undergo annual audit and insure the project and common areas against prescribed risks.

Structural Safety and Redevelopment

Structural stability certification is required after 30 years from construction, with subsequent certification at least once every five years.

Redevelopment may be undertaken subject to prescribed conditions, including approval by owners representing 75% of the apartments.

Dispute Resolution

The Bill establishes a Competent Authority and First and Second Appellate Authorities, with limited recourse to the High Court. Civil court jurisdiction is barred in respect of matters that fall within the jurisdiction of the statutory authorities.

Penalties

Promoters and other persons may be subjected to monetary penalties and continuing daily penalties for specified contraventions, including:

• Failure to submit declarations
• Failure to facilitate association formation
• Failure to execute transfer deeds
• Failure to obtain an Occupancy Certificate

Repeal and Savings

The Bill proposes repeal of the Karnataka Ownership of Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1972 and the Karnataka Apartment Ownership Act, 1972, while preserving existing rights, liabilities and pending proceedings through transitional provisions.

Last Updated on 11 September, 2026