Karnataka Notifies Apartment (Ownership and Management) Act, 2026

The Government of Karnataka has published the Karnataka Apartment (Ownership and Management) Act, 2026 (Karnataka Act No. 45 of 2026) in the Karnataka Gazette Extra-ordinary on October 15, 2026, after it received the assent of the Governor on October 9, 2026. The Act consolidates the law relating to ownership of an individual apartment, recognises an apartment as heritable and transferable immovable property, and establishes a framework for the governance and management of apartments and common areas in Karnataka.

Apartment ownership in Karnataka has, for more than five decades, been governed by two enactments of 1972, i.e., the Karnataka Apartment Ownership Act, 1972 (Karnataka Act 17 of 1973) and the Karnataka Ownership of Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1972 (Karnataka Act 16 of 1973). The Act repeals both, with savings for actions already taken under them; proceedings pending on commencement continue under the repealed Acts (Section 66). A draft was released for public consultation on July 15, 2026. The Bill (LA Bill No. 14 of 2026) was introduced in the Legislative Assembly on August 19, 2026, and passed by the Assembly on August 21, 2026, and by the Legislative Council on August 24, 2026.

The Act applies to projects comprising more than eight apartments in one or more buildings, including villas forming part of single-plot or development plan approvals under the Karnataka Town and Country Planning Act, 1961, and to projects of more than eight apartments built on sites in layouts approved under section 17 of that Act (Section 1). It does not apply to buildings used for the offices or activities of the government, a government undertaking or a local authority; buildings retained under single ownership and not divided into separate apartments; or plotted and villa developments individually conveyed by registered instrument where roads, parks and civic amenities have been handed over to the local authority, unless such developments have common areas, facilities, services or infrastructure held for collective use and managed by the owners through an association or similar body.

Key Provisions of the Act

• Ownership and undivided share (Sections 3 and 4): Each apartment owner has exclusive ownership and possession of the apartment together with a proportionate, undivided and non-exclusive interest in the project land and common areas, the proportion being the ratio of the apartment’s private area to the total private area of the project. The apartment is declared heritable and transferable immovable property that may be sold, mortgaged, leased, gifted, exchanged or bequeathed, and cannot be partitioned or sub-divided except with the approval of the Competent Authority.
• One registered association per project (Sections 21 and 22): Every project is to have a single registered association, a body corporate with perpetual succession and a common seal, with one vote per member irrespective of the number of apartments held. Registration of the association under the Karnataka Co-operative Societies Act, 1959, or the Karnataka Societies Registration Act, 1960, is barred; existing associations registered under those Acts, the Karnataka Apartment Ownership Act, 1972, or the Companies Act, 2013, are deemed to be associations under the Act, and multiple associations for a single project must merge into one.
• Promoter obligations and handover (Sections 10 and 16): The promoter must execute and register a deed of transfer and, within sixty days of the occupancy certificate, hand over project documents and transfer the maintenance deposits and corpus fund with accrued interest and audited accounts to the association. The transfer of management of common areas to the association does not amount to transfer of ownership, which vests in the apartment owners, and the promoter remains liable for structural defects under the Real Estate (Regulation and Development) Act, 2016.
• Maintenance charges and recovery (Sections 20 and 25): Maintenance charges are levied in proportion to the super built-up area, with the penalty for non-payment capped at one month’s maintenance charge. Unpaid dues constitute a charge on the apartment, subordinate to government and municipal taxes, statutory dues and any prior registered mortgage. On persistent default the association may restrict non-essential facilities but may not withhold essential services such as water, electricity, sanitation, lifts, fire safety and access.
• Declaration and Competent Authority (Sections 13, 38, 41, 42, 44, 45 and 60): The promoter must file a declaration with the Competent Authority within sixty days of the occupancy certificate. The State Government is to appoint Competent Authorities (not below Group-B rank) and First and Second Appellate Authorities (not below Group-A Junior Scale and Senior Scale respectively) from officers of local or planning authorities within three months of commencement. The Competent Authority is vested with the powers of a civil court under the Code of Civil Procedure, 1908, may recover its orders as arrears of land revenue or property tax, and proceedings before the First and Second Appellate Authorities are deemed judicial proceedings under the Bharatiya Nyaya Sanhita, 2023. A second appellate authority order is final, subject to appeal to the High Court, and the jurisdiction of civil courts is barred.
• Repairs and structural stability (Sections 30 and 31): Owners must carry out minor repairs to damage attributable to their apartment within five days and major repairs within thirty days, failing which the association may undertake them and recover the cost. Every building must undergo a structural stability assessment by a certified structural engineer after thirty years from construction, with re-certification every five years thereafter.
• Redevelopment (Section 48): Redevelopment of a project may be resolved with the written consent of owners representing not less than seventy-five per cent of the apartments in the whole project and requires the approval of the Second Appellate Authority to bind all owners. An owner who does not consent may opt to have the apartment purchased by the association for a monetary settlement of not less than two times the market value of the apartment, less depreciation, determined by a registered valuer, and the promoter must furnish a bank guarantee or escrow before demolition.
• Penalties (Section 52): Promoter defaults — including failure to file the declaration, form the association or execute the deed of transfer, or handing over possession without an occupancy certificate — attract a penalty of up to one lakh rupees, together with up to one thousand rupees for each day the default continues. Other contraventions by a promoter, association or owner attract a penalty of up to twenty thousand rupees per contravention, with up to one thousand rupees for each day of continuing default.
• Public registry and online portal (Sections 40 and 54): The Competent Authority is to maintain a publicly accessible electronic registry of declarations, associations and undivided interests, and the Government is to establish and maintain an online portal within two years of commencement.

Impact on Stakeholders

• Apartment owners: Each owner receives statutory recognition of exclusive ownership of the apartment as heritable and transferable immovable property, together with a proportionate, undivided interest in the project land and common areas, and shares in additional development rights (such as increased floor area) in the same proportion. Owners must pay maintenance charges assessed on the super built-up area, carry out repairs to damage attributable to their apartment within the prescribed time, refrain from structural or façade alterations, and remain bound by the declaration and bye-laws. Alterations affecting the number or area of apartments require the consent of seventy-five per cent of owners, and redevelopment requires the written consent of owners of seventy-five per cent of the apartments; an owner who does not consent to redevelopment may take a monetary settlement of not less than twice the apartment’s market value.
• Promoters and developers: A promoter must file the declaration, execute and register the deed of transfer, form and register the association within three months of a majority of apartments being allotted, and within sixty days of the occupancy certificate hand over project documents and transfer the maintenance deposits and corpus fund with accrued interest and audited accounts. Common areas and common parking cannot be sold as independent property, and additional development rights vest in the owners. The promoter remains liable for structural defects under the Real Estate (Regulation and Development) Act, 2016, and for the dues of unsold apartments, and defaults attract penalties of up to one lakh rupees with a continuing daily penalty.
• Apartment associations (Resident Welfare Associations): Each project is to have a single registered association, a body corporate that manages the common areas, levies and recovers maintenance charges, maintains accounts audited annually by a chartered accountant, insures the common areas and represents owners in legal proceedings. Associations previously registered under the co-operative societies, society registration or companies law are deemed associations under the Act, and multiple associations for one project must merge into one. The executive committee is elected for a term not exceeding two years, subject to a two-consecutive-term bar, and the association must obtain a structural stability assessment of the building after thirty years.
• Allottees and prospective purchasers: An allottee holds the rights available under the Real Estate (Regulation and Development) Act, 2016, and becomes an apartment owner on execution of the deed of transfer. A prospective purchaser is to obtain from the seller a statement of dues issued by the association, which must, on request, certify the unpaid common expenses to an owner intending to transfer. The purchaser is jointly and severally liable with the seller for unpaid common expenses up to the date of transfer; dues recorded as a charge by the Competent Authority remain payable by the purchaser, and a purchaser who pays them may recover the amount from the previous owner.
• Tenants and occupants: Occupants are bound by the Act, the declaration and the bye-laws. Where the owner is not in occupation, the association may recover maintenance charges from the occupier. On persistent default, non-essential facilities may be restricted, but essential services such as water, electricity, sanitation, lift, fire safety and access cannot be withheld.
• Lenders and mortgagees: A pre-existing registered mortgage ranks ahead of the association’s charge for unpaid dues, while government and municipal taxes and statutory dues rank above both. After the declaration and conveyance, no mortgage may be created over the common areas as a whole, and holders of encumbrances must consent before a project is taken up for redevelopment.

Crucial Timelines under the Act

• Association formation: within three months of a majority of the apartments being allotted (Section 21); existing projects must apply for registration within three months of commencement (Section 22).
• Declaration and handover: the promoter must file the declaration and, within sixty days of the occupancy certificate, hand over project documents and transfer the maintenance and corpus funds (Sections 13 and 16); the Competent Authority registers the association within sixty days of the application (Section 22).
• Existing associations: particulars to be furnished and bye-laws brought in line with the model bye-laws within six months (Section 22).
• Appointment of authorities: the State Government is to appoint the Competent Authority and the First and Second Appellate Authorities within three months of commencement (Sections 38, 44 and 45).
• Bye-laws: deemed approved if the Competent Authority does not decide within thirty days, extendable up to ninety days; an amendment is deemed approved after thirty days (Sections 33 and 34).
• Accounts: the audited statement of accounts must be filed with the Competent Authority within six months of the end of the financial year (Section 28).
• Repairs: minor repairs within five days and major repairs within thirty days of the damage (Section 30).
• Structural stability: assessment after thirty years from construction, with re-certification every five years thereafter; an association may appeal a finding that the building is unsafe to an Expert Committee within thirty days (Section 31).
• Appeals: an appeal to the First or Second Appellate Authority must be filed within thirty days and is to be disposed of within ninety days (Sections 44 and 45).
• Charges and disputes: an application to record a charge for unpaid dues must be made within two years of the dues becoming payable, and a dispute under Section 25 must be referred within six months of its arising (Section 26).
• Online portal: to be established and maintained within two years of commencement (Section 54).

Penalties and Fines

• Promoter defaults (Section 52): failure to file the declaration, form the association or execute the deed of transfer, or handing over possession without an occupancy certificate i.e. a penalty of up to one lakh rupees, together with up to one thousand rupees for each day the default continues.
• Other contraventions (Section 52): any other contravention by a promoter, association or apartment owner i.e. a penalty of up to twenty thousand rupees per contravention, together with up to one thousand rupees for each day of continuing default, with power to order rectification or restoration.
• Non-payment of maintenance charges (Section 25): a penalty not exceeding one month’s maintenance charge, with the unpaid amount constituting a charge on the apartment.
• Bye-law violations (Section 36): a penalty not exceeding the monthly maintenance charge, imposed after notice and hearing and credited to the common fund, with an appeal to the Competent Authority, whose decision is final.
• Recovery (Sections 25, 41 and 52): penalties and unpaid dues may be recovered as arrears of land revenue or property tax.

Status

The Act received the assent of the Governor on October 9, 2026 and was first published in the Karnataka Gazette Extra-ordinary on October 15, 2026. Under Section 1(2), it comes into force on such commencement date as the State Government notifies in the Official Gazette, and it is not yet in force. On commencement, it repeals the Karnataka Apartment Ownership Act, 1972 and the Karnataka Ownership of Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1972, subject to savings.