The Karnataka government on July 15 released the draft of the Karnataka Apartments (Ownership and Management) Bill, 2026 (KAOMA), which proposes sweeping changes to the ownership and management of apartments in the state. The law seeks to replace over five decades old laws with a unified legal framework to strengthen the rights of apartment owners, improve governance and provide a clear mechanism for redevelopment of old residential complexes.
Home buyer groups say the Bill could resolve long-pending issues like legal recognition of apartment associations, transfer of land and common areas and grievance redressal, while real estate experts believe it could improve transparency and streamline the management and redevelopment of old apartment complexes, provided it is effectively implemented.
CREDAI Karnataka welcomed the proposed law and called it a positive step towards strengthening the apartment ownership structure of the state.
Chief Minister DK Shivkumar Said the government is committed to passing the bill during the upcoming monsoon session of the Legislature and has invited feedback from citizens, resident welfare associations and other stakeholders by August 6 before finalizing the law.
Speaking at a stakeholder consultation in Bengaluru on July 15, Shivakumar said the aim was to resolve long-pending apartment-related issues through administrative reforms rather than protracted litigation. He said Bengaluru has more than 25,000 apartment buildings containing an estimated 2.5 to 3 million flats, while last year 60,000-75,000 apartments in Bengaluru and surrounding urban areas were registered with the Karnataka Real Estate Regulatory Authority (KRERA).
According to the government, the existing Karnataka Apartment Ownership Act, 1972 and the Karnataka Ownership Flats (Regulation of Promotion of Construction, Sale, Management and Transfer) Act, 1972, have become obsolete after the enactment of the Real Estate (Regulation and Development) Act (RERA), 2016, resulting in overlapping and sometimes conflicting provisions.
Bengaluru Urban Development Minister Krishna Byre Gowda said there is currently no dedicated statutory authority to address issues related to apartments, which have associations registered under various laws, including the Karnataka Societies Registration Act and KRERA.
What does the draft Karnataka Apartment (Ownership and Management) Bill, 2026 propose?
The draft law seeks to address several long-pending issues, including transfer of land beneath apartment complexes, ownership of common areas, formation and regulation of apartment owners’ associations, maintenance responsibilities, redevelopment of old buildings and dispute resolution.
Redevelopment of Apartment Complexes: Among its key provisions, Draft bill proposes redevelopment Apartment complexes can go ahead with the consent of at least 75% of the apartment owners. Owners willing to participate will be entitled to compensation at least double the prevailing market value of their property.
Structural Safety Measures for Old Buildings: The Bill also introduces mandatory structural safety measures for old buildings. Apartment complexes older than 30 years will have to obtain structural stability certificate and renew it every 5 years thereafter. It also creates, for the first time, a detailed legal framework for the redevelopment of old apartment complexes, as many of Bengaluru’s early residential buildings are nearing the end of their design life.
Undivided share of project land and common areas: A key provision requires developers to transfer the project land and common areas to the apartment owners, while the apartment associations will only be responsible for management and maintenance. The Bill also clarifies the calculation of undivided share of land attached to each apartment and introduces deemed conveyance provision for old projects where the common areas were never legally transferred to the owners.
Developers must hand over all original project documents, transfer whatever has not been spent maintenance fundFacilitate the formation of apartment owners’ associations and maintain common areas until residents formally assume control.
dispute resolution: The bill applies to apartment projects having more than eight units, bringing enforcement under the urban development department through a designated competent authority.
For dispute resolution, the Bill proposes to set up a competent authority and an appellate authority, both with powers equivalent to a civil court. The urban development department will monitor implementation, regulate apartment associations, approve bylaws, investigate complaints and enforce compliance. Existing apartment associations registered under current laws will be automatically recognized under the new framework.
Defines private and super built up area: The Bill also defines private sector and super built-up area.
Speaking at a stakeholder consultation in Bengaluru, Chief Minister M. DK Shivakumar said the government aims to ensure that homebuyers enjoy full ownership rights when they purchase a property.
He said, “We are very firm on one principle. When a property is handed over, the owners should have full legal rights over it. After the sale agreement and registration is completed, builders should hand over all the relevant documents. Apartment owners should not be forced into litigation to secure their basic rights.”
The Chief Minister also expressed concern about the delay by developers in transfer of title deeds and other ownership documentIt is alleged that some builders mortgage the properties of buyers and retain the original documents until the loan is repaid.
“These practices are unacceptable. The process of handing over documents should be transparent, official and properly documented, copies of which should be maintained with both the builder and the owner,” he said.
What do home buyers say?
Calling the draft rules an important step towards strengthening the rights of home buyers, Karnataka Homebuyers Forum convenor Dhananjay Padmanabhachar said they could address three long-standing issues faced by apartment owners in the state.
“First of all, there has never been any clear statutory mechanism to register apartment associations under the Karnataka Apartment Ownership Act. Although many associations claim to be registered, there has been no designated authority or gazette notification to effectively enforce the Act for almost five decades. Apartment associations need a legal identity, and these draft rules may finally provide it,” he said.
Second, Padmanabhachar pointed out that Section 17 of the Real Estate (Regulation and Development) Act (Rare) Developers are required to transfer the land and common areas to the association of allottees. “For this transfer, the association must be legally registered. Without a recognized association, the transfer of land cannot be completed. These rules can help resolve the long pending issue,” he said.
The third major concern is the absence of a dedicated grievance redressal mechanism. “At present, apartment owners often have to approach civil courts even for routine disputes within the housing society. The proposed competent authority under the draft rules will provide an exclusive forum to handle such complaints, thereby reducing the need for litigation and making dispute resolution faster and more accessible,” he said.
Important step towards strengthening consumer confidence: CREDAI Karnataka
As our cities evolve, the legal framework governing apartment ownership must also evolve. The proposed Karnataka Apartment Ownership (Draft) Bill recognizes that apartment ownership today goes beyond home purchase and requires greater clarity on ownership rights, governance and long-term management of residential societies.
“This is an important step towards strengthening consumer trust, improving transparency and reducing avoidable disputes,” said Bhaskar T Nagendrappa, Chairman, CREDAI Karnataka.
“It is equally important for the draft bill to recognize redevelopment as an emerging urban priority, which will become increasingly relevant as Karnataka’s cities mature and the existing housing stock ages,” he said.
CREDAI Karnataka, representing the state’s developer fraternity, “welcomes this initiative of the government. We are actively engaging with the Bangalore Apartment Federation (BAF) and other stakeholders to jointly deliberate on the provisions of the draft bill and provide constructive recommendations that meet the current and future needs of home buyers while ensuring a practical, balanced and forward-looking regulatory framework.”
“Since the law is currently in the consultation phase, we encourage all stakeholders to actively participate in the process so that the final law can effectively protect the interests of apartment owners while supporting the sustainable growth of Karnataka’s housing sector,” he said.
Opinion of real estate experts on the draft bill
The Bill is a timely intervention to modernize a regulatory framework that has not seen significant changes since 1972. A single legal framework will increase transparency in governance for housing societies, reduce conflicts and standardize maintenance and redevelopment processes.
“These are important in cities like Bengaluru with rapidly aging housing stock. The focus on redevelopment is particularly relevant, as land scarcity and structural obsolescence are emerging challenges in mature micro-markets,” said Ashish Sharma, Executive Director and City Head – Bengaluru, ANAROCK Group.
“However, the Bill needs effective implementation to be successful. Clear separation of roles between RWAs, developers and authorities, mechanisms for dispute resolution and enforcement provisions will be important. Done right, it can be a model for other states facing similar urban housing problems,” he said.
