Karnataka assembly passes bill to regulate apartment ownership, common areas

Karnataka Assembly Passes Three Key Bills

On Friday, August 21, 2026, the Karnataka Legislative Assembly passed three important bills focused on apartment ownership, civic infrastructure, and property regularization.

Bengaluru Development and Parliamentary Affairs Minister piloted the legislation, highlighting the need to address long-standing issues arising from rapid urbanization.

1. Karnataka Apartment (Ownership and Management) Bill, 2026

This is the most significant of the three. It creates a unified legal framework for apartment ownership, management of common areas, and resident associations, replacing fragmented rules under the 1972 Karnataka Apartment Ownership Act and other laws (including aspects overlapping with RERA).

Key provisions include:

• Clear rules on ownership, transfer, inheritance, mortgage, lease, or gift of individual apartments along with the undivided share in common property (land, roads, open spaces, clubhouses, etc.). These rights cannot be separated without approval.

• One registered association per apartment project (bringing uniformity, as some RWAs were earlier under the Cooperative Societies Act).

• Dispute-resolution mechanism through competent authorities at gram panchayat, municipality, and municipal corporation levels, with appeal provisions.

• Redevelopment of ageing or unsafe buildings: Possible with written consent of at least 75% of apartment owners. Dissenting owners receive compensation based on an independent valuation of their share (reports mention twice the assessed value in some accounts).

• Promoters must disclose existing mortgages. Associations cannot create new encumbrances on individual units or common areas after conveyance.

• Adjoining apartments can be combined for use as a single unit while retaining separate numbers and proportionate rights.

• Any additional development rights or built-up area from planning/zoning changes belong collectively to owners, distributed by private area share. Promoters must execute and register the transfer deed.

  
  

Minister noted that rapid urbanization and land scarcity had created issues not fully addressed by older laws. The government consulted stakeholders and indicated openness to future amendments if needed. The Bill has been tabled in the Legislative Council.

2. Karnataka Municipal Corporations (Amendment) Bill, 2026

This amendment targets problems in unauthorized layouts and poorly maintained private infrastructure within municipal corporation limits.

Main features:

• Empowers municipal corporations to formally declare privately held streets and drains as public infrastructure if they are in poor condition and pose a threat to public health or safety.

• Facilitates conversion of eligible properties from B-khata to A-khata, giving owners stronger legal documents.

• Helps residents access bank loans, building approvals, and occupancy certificates.

• Addresses roads remaining in the names of former landowners so that local bodies can take over maintenance.

  
  

Minister pointed out that unauthorized layouts had spread over decades without proper roads, drainage, electricity, or water. While the government stopped new ones in 2024, older ones needed regularization. He said the move would benefit lakhs of property owners.

3. Karnataka Municipalities (Amendment) Bill, 2026

This mirrors the Corporations Bill but applies to municipalities (smaller urban local bodies).

Key points:

• Municipal commissioners and chief officers can proactively take over private streets and drains that endanger public health or safety and declare them public.

• Prevents former landowners from later claiming compensation or Development Rights Certificates (TDR) for the land used for such streets.

• Site owners along a private road can also approach the local body seeking its declaration as a public road.

• Once declared public, maintenance and development responsibility shifts to the local authority.

  
  

The government argued this ensures private ownership disputes do not block essential civic services. Opposition members raised concerns about the lack of compensation for landowners and potential misuse of the provisions.

Context and Next Steps

The bills were passed

Separately, the Legislative Council also cleared three other pieces of legislation on the same day (related to BDA regularization charges, Nadaprabhu Kempegowda Heritage Area Development Authority, and Town and Country Planning). Those now await the Governor’s assent.

These three Assembly bills aim to bring clarity for apartment dwellers, improve roads and drains in private/unauthorized layouts, and strengthen property documentation—issues that affect millions across Karnataka’s growing cities, especially Bengaluru.

Note: The bills still need to complete the full legislative process (Council approval where pending, and Governor’s assent) before becoming law.

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"What This Means for You as a Homeowner"

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If you own an apartment, a house in a private layout, or property with a B-khata in Karnataka, these three bills bring practical changes that could affect your daily life, finances, and long-term security.

For Apartment Owners

• Clearer ownership and rights*: You now have stronger legal clarity on owning your flat *and your share of common areas (roads, parks, clubhouse, etc.). You can freely transfer, mortgage, lease, or gift your apartment along with that share—without the old confusion between different laws.

  
  

• Better association management**: One uniform residents’ association per project means fewer disputes over which rules apply. Maintenance and common facilities should become more accountable.

  
  

• Easier dispute resolution**: Instead of long court battles, you can approach local competent authorities (at panchayat, municipal, or corporation level) for quicker solutions to issues with builders, neighbours, or the association.

  
  

• Redevelopment of old buildings**: If your apartment complex is ageing or unsafe, reconstruction can go ahead with the consent of 75% of owners. If you disagree, you are entitled to fair compensation based on an independent valuation of your share (reports indicate it could be twice the assessed value). This removes the earlier deadlock where a few holdouts could block the entire project.

  
  

• Extra development rights**: Any new built-up area arising from changes in planning rules will belong to all apartment owners collectively and be shared according to your flat’s size—not the builder.

  
  

For Owners in Private or Unauthorised Layouts

• Better roads and drains**:

  Local bodies can now take over poorly maintained private streets and drains that pose health or safety risks and turn them into public infrastructure. You no longer have to depend solely on a private developer or former landowner for basic civic amenities.

• Path to full legal documents (A-khata)**: Eligible properties currently holding only B-khata can move toward A-khata status once roads and drains are regularised. This makes it easier to get bank loans, building plan approvals, and occupancy certificates.

  
  

• No more half-measures**: The government has signalled it wants to give “full documents” rather than leave people stuck with incomplete papers.

Practical Bottom Line

• Your property becomes more bankable and easier to sell or mortgage.

• Maintenance of common areas and civic infrastructure should improve over time.

• You gain clearer legal protection and faster ways to resolve everyday problems.

• In older apartment buildings, the path to redevelopment is now clearer and more structured.

These changes are still moving through the final legislative steps (Council and Governor’s assent), so keep an eye on official notifications. Once notified, they will start applying across the state—especially in rapidly growing cities like Bengaluru.

If your society or layout is already facing specific issues (redevelopment, road maintenance, or khata conversion), these bills give you stronger tools to push for solutions.

Disclaimer : AI generated article.