After decade-long demand, government presents draft Apartment bill
The Karnataka government has proposed a comprehensive overhaul of the legal framework governing apartments in the State by introducing the Karnataka Apartment (Ownership and Management)
The Karnataka government has proposed a comprehensive overhaul of the legal framework governing apartments in the State by introducing the Karnataka Apartment (Ownership and Management) Bill, 2026, which seeks to repeal two five-decade-old laws and bring apartment ownership, management, and redevelopment under a single piece of legislation. The bill will be tabled in the upcoming monsoon session starting from August 6. The major overhaul has been proposed in terms of fixing the competent authority, the safety of older apartment complexes, dispute resolution, and accountability. The proposed bill will 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 complexities of modern apartment housing. “The existing laws have led to prolonged litigation, uncertainty for homebuyers, and disputes between promoters and apartment owners. Several provisions of those laws also overlap with the Real Estate (Regulation and Development) Act (RERA),” said Tushar Giri Nath, Additional Chief Secretary, Urban Development Department. Applicability and accountability The proposed legislation will apply to apartment projects with more than eight units.
One of the key provisions of the bill is the assignment of a competent authority to oversee the proposed act, which was previously not established. The proposed bill will be implemented by the Urban Development Department (UDD). Another major inclusion is the transfer of ownership of project land and common areas to apartment owners. While apartment associations will continue to manage and maintain common facilities, ownership of these areas will have to be transferred to the apartment owners. The bill also provides clarity on the calculation of the undivided share of land attached to each apartment. It also seeks to fix the calculation of maintenance costs that need to be paid by the apartment owners, which is now divided equally among everyone. Mandatory audit The bill introduces mandatory structural safety audits for ageing apartment buildings. Apartment complexes that are more than 30 years old will have to submit a structural stability certificate, with fresh certification required every five years thereafter. It also creates a common capital fund through contributions from apartment owners to finance major renovations and redevelopment works. However, redevelopment can only be taken up when 75% of the flat owners consent to it.
The BriefWire