Karnataka’s new Apartment Ownership Act nearly ready: What you need to know

Bengaluru real estate: Karnataka’s new law aims to replace decades-old Apartment Ownership Act, providing clarity on land rights and common area ownership

The Karnataka government is in the final stages of drafting a new Apartment Ownership Act that could reshape the governance and maintenance of residential apartments across Bengaluru and the state, according to officials familiar with the matter. The draft will soon be sent to ministers for approval.

The new Apartment Ownership Act is expected to replace the decades-old Karnataka Apartment Ownership Act, bringing clarity on issues such as land rights, common area ownership, and maintenance. (Representational Image) (Real Estate)

Aimed at addressing long-standing gaps in the current regulatory framework, the proposed legislation is expected to replace the decades-old Karnataka Apartment Ownership Act, bringing greater clarity on issues such as land rights, common area ownership, and maintenance.

This development follows a statement made last year by Karnataka Deputy Chief Minister DK Shivakumar, who announced that the state was working on a uniform law aimed at addressing homebuyers' concerns. “We will introduce a new apartment ownership Act under the purview of the RERA Act, which will replace the Karnataka Apartment Ownership Act, 1972,” he had said.

Common area handover to the association of allottees is one of the key demands

The absence of a clear legal framework has created challenges for homebuyers, leaving many with no option but to seek relief through the courts.

According to Dhananjaya Padmanabhachar, director of the Karnataka Home Buyers Forum, the state government and the Karnataka RERA Authority are responsible for issuing directions regarding the registration of the association of allottees and ensuring the transfer of common areas, as mandated under Section 17 of the RERA Act.

"However, due to their failure to act in a time-bound manner, apartment buyers have been left with no option but to approach the courts for redressal. We ask for the new Act to mandate the automatic transfer of ownership, including the land, building, and all common areas, from the builder to the apartment owners within a defined timeframe," he said.

Buyers want the new Act to notify a competent Authority

One of the key demands from citizen groups like the Bangalore Apartments’ Federation (BAF) is the immediate notification of rules for identifying and appointing the competent authority under the upcoming apartment ownership act, Vikram Rai, president of BAF, said.

The competent authority is expected to serve as the primary regulatory body responsible for ensuring the implementation of the law, addressing grievances, and enforcing builder and association compliance. Without a clearly defined authority, homebuyers and apartment owners have no institutional mechanism to turn to for dispute resolution or accountability. Currently, the competent authority, as per the existing Karnataka Apartment Ownership Act 1972 (KAOA), is the Registrar of Co-Operative Societies, homebuyers say.

"However, when we approached them for grievance redressal, they declined to address homebuyers' concerns, saying that they don’t have jurisdiction to address the complaints," Padmanabhachar said.

"The existing law was framed way back in 1972, a time when apartment living was barely relevant. The apartment culture has exploded in the last 25 years, but the laws haven't kept pace. The new law will definitely lay a stronger foundation to address core issues," Rai told HT.com.

Legal experts flag gaps in Karnataka's apartment law, urge alignment with RERA

“Any new apartment ownership legislation will need to be read alongside Section 17 of the RERA Act, which mandates the handover of common areas to the Association of Allottees under applicable law,” explained Akash Bantia, an advocate practicing before the Karnataka Real Estate Regulatory Authority (KRERA).

He pointed out that the existing Karnataka Apartment Ownership Act (KAOA), 1972 is outdated and has failed to keep pace with the rapid evolution of urban housing, particularly in Bengaluru, where apartment living has become the norm following the city's emergence as an IT hub.

“There are major structural gaps in the current law, for instance, the absence of a designated competent authority under KAOA leaves apartment owners and associations without a clear regulatory body for enforcement or dispute resolution,” Bantia said.

“While the full scope of the new bill is yet to be seen, we hope it addresses these long-standing issues and strengthens governance, transparency, and accountability in Bengaluru’s real estate sector,” he added.