Karnataka Apartment Bill 2026: 75% rule, common areas, compensation explained

The Karnataka Apartment (Ownership and Management) Bill, 2026, was recently approved by the Legislative Assembly. The bill's presenter, Bengaluru Development Minister Krishna Byre Gowda, highlighted the need for updated legislation to address common area ownership disputes in apartment complexes. Gowda pointed out that existing laws lack clarity in these matters, leading to disagreements when buildings are demolished and rebuilt.

The bill also tackles the issue of multiple groups claiming to be official representatives of apartment complexes, potentially due to the Real Estate Regulatory Authority's inability to resolve various problems. The legislation aims to provide relief to apartment owners by mandating the formation of Resident Welfare Organisations.

Other critical aspects addressed by the bill include the management of common areas, transfer of these areas from builders, dispute resolution, and the appointment of competent authorities to handle such disputes. Additionally, the bill introduces a provision for reconstructing old apartments when their safety is compromised. If 75% of residents opt for reconstruction, they will receive compensation equivalent to twice the property's value. Those who refuse reconstruction will not be compensated.

The Karnataka Municipalities (Amendment) Act, 2026, was also passed during the same session. This bill aims to provide 'A' Khata to residents of unauthorised layouts in urban centers outside Bengaluru. The legislation guarantees a 'bhoo guarantee (land guarantee)' for all state residents. Additionally, if residential layouts were not constructed per law, the road will be declared a public road regardless of its width. This decision will benefit thousands of residents who lack proper documentation.