Karnataka Assembly Passes Bill to Regulate Apartment Ownership and Common Areas

The Karnataka Assembly has passed a new Bill aimed at creating a clearer legal framework for apartment ownership, common areas and redevelopment, a move that could affect apartment owners and housing societies across the state.

The Karnataka Apartment (Ownership and Management) Bill, 2026, seeks to address disputes over ownership and management of common areas, roads, clubhouses, open spaces and other facilities in residential complexes. The legislation was passed by the Assembly on Friday, according to reports from the state legislature proceedings.

The legislation comes as apartment living has expanded rapidly across Karnataka, particularly in Bengaluru. The government has argued that the existing legal framework, much of it dating to the 1970s, does not adequately address the complexity of modern apartment developments.

One of the key issues addressed by the Bill is the management of common areas. Under the proposed framework, apartment owners' associations would be formed under the new law, with provisions covering how common facilities are transferred from builders and subsequently managed.

The Bill also establishes mechanisms for resolving disputes. A competent authority would be appointed at different levels of local administration, including municipal corporations, municipalities and gram panchayats. Appeals against decisions would also be possible.

Redevelopment of ageing apartment buildings is another major component. The framework provides for reconstruction when buildings become old or structurally unsafe. A redevelopment proposal can proceed when at least 75% of apartment owners agree, according to the provisions outlined by the government.

The Bill also provides protection for owners who do not agree to redevelopment. According to the government's explanation of the legislation, an independent mechanism would assess the value of a dissenting owner's property, with compensation set at twice that value before the property can be acquired for reconstruction.

The legislation follows a draft framework that had already proposed structural safety requirements for older buildings. The draft called for structural stability certificates for apartment buildings more than 30 years old, with renewals every five years.

Another significant issue is the overlap between different forms of apartment associations. The government has said some complexes currently have associations registered under different laws, creating disputes over which body has authority. The new framework seeks to establish a common legal basis for apartment owners' associations.

The Bill also forms part of a wider effort to address property-related uncertainty in Karnataka. Separate amendments passed alongside it concern private roads and unauthorised layouts, including provisions that can allow certain private roads to be recognised as public roads and help eligible properties obtain recognised ownership records.

For apartment owners, the legislation matters because it moves several long-running questions — who owns common spaces, who manages them, how disputes are resolved and how old buildings can be redeveloped — towards a single statutory framework.

Source: https://realty.economictimes.indiatimes.com/news/regulatory/karnataka-assembly-passes-bill-to-regulate-apartment-ownership-common-areas/133416746