The Karnataka government has proposed a new law to overhaul how apartments are owned, managed and redeveloped in the state, replacing two legislations enacted in 1972 that officials say no longer reflect the realities of modern high-rise housing.The Karnataka Apartment (Ownership and Management) Bill, 2026, unveiled on Wednesday, aims to create a single legal framework governing apartment ownership, residents’ welfare associations (RWAs), developers and redevelopment. Bengaluru has over 25,000 apartment buildings and an estimated 25-30 lakh apartments, with tens of thousands of new homes being added every year. In that context, if enacted, the legislation could significantly alter the rights and responsibilities of apartment owners, builders and associations.
Why is a new law being proposed?
The state government said that the existing Karnataka Apartment Ownership Act, 1972 and Karnataka Ownership Flats Act, 1972 were drafted decades before the rise of large gated communities and mixed-use developments.It also argued that the current framework is not fully aligned with the Real Estate (Regulation and Development) Act (RERA), 2016, leading to legal ambiguities over ownership, management, redevelopment and dispute resolution.The proposed Bill seeks to bring these issues under one law.
What changes for apartment owners?
One of the biggest changes is that the Bill clearly states that ownership of the land and common areas will vest with apartment owners, while apartment associations will be responsible only for management, maintenance and administration.The legislation also introduces clear legal definitions for terms such as private area, super built-up area and undivided share of land, areas that have often been disputed between buyers and developers.For owners of older apartment complexes, the Bill proposes deemed conveyance, allowing transfer of common areas to apartment owners even in projects where developers failed to complete the process.
Focus on ageing buildings
With many apartment complexes in Bengaluru now over three decades old, the Bill introduces mandatory structural stability certificates for buildings older than 30 years, to be obtained every five years.The proposal also creates a legal framework for redevelopment of ageing or unsafe buildings.Redevelopment can proceed with the consent of at least 75 per cent of apartment owners, while owners who do not consent must receive compensation of at least twice the market value.
Who will be covered?
The Bill will apply to apartment projects with more than eight units and will be administered through a designated competent authority under the Urban Development Department.According to the government, the legislation aims to strengthen financial transparency, improve accountability of developers and associations, protect ownership rights and provide a clearer legal framework for managing and redeveloping apartment communities.The proposed law also creates a dedicated two-tier dispute resolution mechanism under the Urban Development Department, with appellate powers similar to those of a civil court.The government says this is intended to provide faster resolution of disputes involving developers, apartment associations and owners without relying solely on lengthy civil litigation.This is still a proposed Bill and will have to go through the legislative process before becoming law.
