New Launch - India Real Estate Report 2026.
The Karnataka government on July 15 released the draft Karnataka Apartment (Ownership and Management) Bill, 2026 (KAOMA), proposing a comprehensive overhaul of apartment ownership and management across the state. The legislation aims to replace laws over five decades old with a unified framework to strengthen owners' rights, improve governance, and establish a clear mechanism for redeveloping ageing residential complexes.
Why the Reform Is Needed
Chief Minister DK Shivakumar noted that Bengaluru alone has more than 25,000 apartment buildings housing an estimated 2.5 to 3 million flats, with 60,000-75,000 apartments registered with the Karnataka Real Estate Regulatory Authority (KRERA) in the past year. According to the government, the existing 1972-era laws have become outdated since the 2016 enactment of RERA, resulting in overlapping and sometimes conflicting provisions. Bengaluru Urban Development Minister Krishna Byre Gowda pointed out that no dedicated statutory authority currently exists to handle apartment-related issues.
Key Proposals in the Bill
- Redevelopment allowed with consent of at least 75% of owners; non-consenting owners entitled to compensation of at least twice market value
- Buildings over 30 years old must obtain a structural stability certificate, renewed every 5 years
- Developers must transfer project land and common areas to owners; associations handle only management and maintenance
- Deemed conveyance introduced for older projects where common areas were never legally transferred
- Applies to projects with more than 8 units; enforced by a new Competent Authority and Appellate Authority under the Urban Development Department
Government's Stated Objective
Shivakumar said the government's central principle is that owners must receive full legal rights once a property sale is completed, with builders required to hand over all relevant documents rather than forcing buyers into litigation. He also raised concerns about developers delaying title deed transfers, alleging some builders mortgage buyers' properties and withhold original documents until loans are repaid, calling for a transparent, properly documented handover process going forward.
Also Read: Karnataka Government Hands Over Homes To 427 Families In Madikeri
How Homebuyers Are Responding
Dhananjaya Padmanabhachar, convenor of the Karnataka Homebuyers Forum, said the draft rules could resolve three long-standing issues: the lack of a clear statutory mechanism for registering apartment associations, the inability to transfer common areas under RERA Section 17 without a legally registered association, and the absence of a dedicated grievance redressal forum beyond civil courts.
Industry Reaction
CREDAI Karnataka welcomed the proposed legislation, with president Bhaskar T Nagendrappa calling it a meaningful step toward stronger consumer confidence and reduced disputes, while noting its recognition of redevelopment as an increasingly urgent priority for Karnataka's ageing housing stock. Ashish Sharma, Executive Director at ANAROCK Group, described the bill as a timely modernisation effort, though he cautioned that its success will depend on clear role segregation between RWAs, developers, and authorities, along with strong enforcement mechanisms.
What Happens Next
The government has invited feedback from citizens, resident welfare associations, and other stakeholders until August 6, with Shivakumar stating the administration is committed to passing the bill during the upcoming Monsoon Session of the legislature.
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