The proposed Karnataka Apartment (Ownership and Management) Bill, 2026, will replace the five-decade-old Karnataka Apartment Ownership Act and Karnataka Ownership Flats Act.
The draft legislation applies to apartment projects with more than eight units and clearly separates land ownership rights from management responsibilities.
Buildings older than 30 years must obtain a structural stability certificate every five years to ensure safety.
Karnataka plans to overhaul its housing rules as the state cabinet has drafted the Karnataka Apartment (Ownership and Management) Bill, 2026 to regulate how multi-family properties are owned, run and rebuilt. This single legislative framework will replace two separate laws enacted in 1972, which have governed the local housing sector for over 50 years.
The draft legislation aims to protect apartment owners' rights, clarify land ownership and simplify the redevelopment of ageing buildings, PTI reported.
Multi-family complexes now dominate the housing market in Bengaluru as the city currently has over 25,000 apartment blocks containing between 2.5mn and 3mn individual units, the report said.
Modernizing Housing Laws
According to PTI, the state government informed that the 1972 statutes fail to address contemporary residential needs. They also clash with the Real Estate (Regulation and Development) Act (RERA), 2016. Rapid urban expansion drives this legislative shift with homebuyers registering between 60,000 and 75,000 new apartments with the Karnataka Real Estate Regulatory Authority (KRERA) in Bengaluru Urban and adjacent districts over the last 12 months.
The new rules will govern residential complexes containing more than eight flats, the report said. Instead of relying on the current disjointed regulatory setup, the Urban Development Department will oversee compliance through a specialized agency.
Ownership and management will operate under separate legal definitions. Flat buyers will hold the title to the project land and shared facilities. Meanwhile, resident groups will focus solely on upkeep, operations and building administration. The draft also defines private space, super built-up area and undivided land shares to prevent legal conflicts.
Safety and Dispute Resolution
Structural safety gets greater attention under the draft rules with residential complexes older than 30 years required to secure a structural stability certificate every five years, PTI reported.
Disputes will be resolved through a new two-tier system with the appellate body under this framework wielding the same powers as a civil court.
The report also mentioned that the Bill also provides relief for older apartment projects through "deemed conveyance". This allows ownership of common areas to be legally recognised even if the formal transfer process was never completed.
New Redevelopment Rules
A structured legal pathway will govern the reconstruction of deteriorating or hazardous residential blocks. Rebuilding initiatives will need approval from a minimum of 75 per cent of the flat owners. Dissenting residents must receive payouts worth at least double the market rate of their flats, the PTI report added.
The draft remains at the proposal stage. State officials consulted Bengaluru apartment owners' associations to gather feedback before advancing the legislation.
