Karnataka Apartment (Ownership and Management) Bill, 2026: A Proposed New Framework for Apartment Ownership and Redevelopment

The Karnataka Government has proposed the Karnataka Apartment (Ownership and Management) Bill, 2026 (“Bill”) to replace both the Karnataka Apartment Ownership Act, 1972 and the Karnataka Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1972. The Bill creates a unified framework controlling unit ownership, common areas, apartment associations, maintenance, dispute resolution, and redevelopment.

The Bill has been passed by the Karnataka Legislative Assembly and Legislative Council, but is not yet in force pending the Governor’s assent and commencement notification.

Key Proposed Changes

Land and Common-Area Ownership

One notable aspect of the Bill is its proposed treatment of the land and common areas associated with an apartment project. The concept envisions apartment owners having an undivided and inseparable interest in the project’s land and common amenities, with the apartment association largely responsible for management, maintenance, and administration.

This is meant to provide better clarity on ownership rights and to resolve conflicts over communal areas and facilities.

Applicability and Promoter Obligations

The Bill is proposed to apply to projects with more than eight flats, subject to certain exemptions. It also aims to increase transparency about the promoter’s obligations, such as mortgage disclosure and the transfer of funds and data to the unit owners’ association.

Structural Safety Audits

Buildings would be required to undergo a structural stability audit after 30 years of construction, with subsequent certification every five years. This is especially relevant for Bengaluru’s aging apartment portfolio, as it may impose additional compliance requirements on apartment associations.

Redevelopment Framework

The Bill presents a precise regulatory structure for redeveloping residential developments. Redevelopment would typically necessitate the approval of owners representing at least 75% of the flats in the project. The proposal also includes compensation provisions for owners who do not agree to redevelopment.

This framework has the potential to significantly modify how redevelopment issues are handled, particularly in older apartment developments where individual disagreement has traditionally hindered collective redevelopment.

Implications for Real Estate Due Diligence

If enacted, the proposed framework will have a considerable impact on property due diligence. Lawyers and buyers may need to review not only the apartment title and the undivided interest in the property, but also several additional elements:

• The project’s declaration and association records
• Common-area ownership documentation
• Promoter handover requirements
• Structural compliance certificates
• Redevelopment-related resolutions

The Bill thus reflects a potentially substantial move away from a mostly apartment-centric ownership framework and toward a more comprehensive project-level framework governing ownership, management, and redevelopment.

Current Status and Next Steps

The proposed Karnataka Apartment (Ownership and Management) Bill, 2026 seeks to modernize a legislative framework that has governed apartment ownership in Karnataka for more than 50 years. Its regulations on common-area ownership, association governance, structural safety, and redevelopment may have significant implications for apartment owners, developers, and real estate professionals.

The Bill is not yet in force. Its commencement and practical implementation will be determined by the applicable assent, commencement notification, and subsequent rules or notices.

Last Updated on 11 September, 2026