The Karnataka Assembly has passed the Karnataka Apartment (Ownership and Management) Bill, 2026, aimed at providing clearer rules for apartment ownership, management of common areas and facilities, and governance of residential complexes. The Bill was among three pieces of legislation cleared by the Assembly amid protests by BJP and JD(S) members seeking the resignation of Minister N Nagendra over corruption allegations. 
Presenting the Bill, Bengaluru Development Minister Krishna Byre Gowda said the legislation had been prepared after considering the views of various stakeholders. He said the government was open to making changes if required in the future. The government has argued that the existing laws have not kept pace with the rapid growth of apartment-style housing as land becomes increasingly scarce. 
The Bill seeks to settle questions around ownership and maintenance of common areas such as roads, clubhouses and other shared facilities within apartment projects. It also provides for one registered apartment owners’ association for a completed project, including projects developed in multiple phases. This is intended to address situations where different groups within the same complex claim to represent residents. 
Apartment owners will have exclusive ownership and possession of their individual units along with a proportionate, undivided and non-exclusive interest in the project land and common areas. The apartment and its corresponding share can be transferred, mortgaged, leased or gifted. These rights cannot be separated without the required approval. Promoters will also have to disclose mortgages relating to the project, while owners can mortgage their individual apartments without affecting the rights of other owners. 
The legislation also deals with future development potential. Any additional development rights or built-up area arising from changes in planning, zoning or related regulations will collectively belong to apartment owners and will be distributed according to the private area of their respective apartments. The promoter will be required to execute and register the deed transferring these rights. 
Apartment associations will not be allowed to create mortgages or other encumbrances over individual apartments or common areas after conveyance. Adjacent apartments can be combined for use as a single unit, but their individual apartment numbers and proportionate rights in the land will remain separate. 
The Bill also introduces provisions for redevelopment of ageing or unsafe apartment buildings. Reconstruction can be undertaken with the written consent of at least 75% of apartment owners. Owners who do not agree to the redevelopment will be entitled to compensation based on an independent assessment, with the Bill providing for compensation equal to twice the assessed value of their property. 
For disputes involving apartment projects, the legislation provides for competent authorities at the panchayat and urban local body levels. Apartment owners will be able to approach these authorities regarding issues related to ownership, associations and common areas. The Bill also provides a mechanism for appeals and gives the authorities powers to deal with disputes. 
The legislation seeks to replace the Karnataka Ownership of Flats Act, 1972 and the Karnataka Apartment Ownership Act, 1972. The government has said the two laws, introduced more than five decades ago, do not adequately address present-day issues involving common areas, apartment associations, redevelopment and ownership rights. RERA also does not cover all aspects of apartment management and ownership, according to the government. 
The Bill will apply to projects comprising more than eight apartments, including certain villa projects, while excluding specified government buildings, properties under single ownership and certain plotted or villa developments where individual sites have been conveyed and civic amenities handed over to local authorities. It also places responsibilities on promoters, including handing over project documents and maintenance-related funds to the apartment owners’ association after the Occupancy Certificate, along with audited statements. 
The Assembly also passed amendments to municipal laws allowing officials to declare certain private streets as public streets where they are in poor condition and pose a public safety risk. The provisions also create a route for roads in unauthorised layouts to be recorded as public roads, which could help eligible property owners obtain A-Khata records subject to applicable rules. 
Source PTI