The proposed Karnataka Apartment Bill 2026 aims to resolve long-standing disputes between builders and residents by clarifying ownership of common facilities and land.

Key Takeaways

  • The proposed bill grants flat owners undivided ownership rights in land and all common areas.
  • Builders can no longer claim ownership of amenities like clubhouses if they use the project's FAR.
  • Parking disputes are addressed by classifying open, stilt, and basement parking as common areas.
  • Legal experts warn of a potential conflict between this bill and the RERA Act, 2016.

Bengaluru: In a significant move to overhaul urban housing governance, the proposed Karnataka Apartment (Ownership and Management) Bill, 2026 seeks to end the perennial tug-of-war between developers and residents regarding the ownership and management of common spaces. The legislation aims to establish a definitive legal framework, ensuring that the rights of individual flat owners are protected against arbitrary decisions by builders.

Redefining 'Common Areas'

One of the most impactful aspects of the draft bill is the expanded definition of common areas. Moving beyond the traditional scope of staircases and corridors, the bill now includes security staff quarters, drainage systems, sanitation facilities, and renewable energy installations. Crucially, any recreational facility—such as a clubhouse or swimming pool—that utilizes the project's Floor Area Ratio (FAR) will automatically be classified as a common area. This prevents builders from siphoning off high-value amenities for private profit after the sale of units.

Ownership Rights and Legal Friction

Under the proposed law, every apartment owner will hold an undivided and non-exclusive ownership right in the land and all shared facilities. This right is intrinsically linked to the flat and will transfer seamlessly during sale or inheritance. However, this provision has sparked debate. Dhananjaya Padmanabhachar, convenor of the Karnataka Home Buyers Forum, highlighted a critical discrepancy with Section 17 of the RERA Act, 2016. While RERA mandates that common area titles be transferred to the 'Association of Allottees,' this new bill proposes individual ownership, which could create a logistical nightmare for government land record departments managing thousands of individual names.

Addressing the Parking Conundrum

The bill also tackles the contentious issue of parking. It stipulates that open, stilt, basement, and podium parking areas remain part of the common areas and cannot be sold as independent private properties. Only enclosed, separately approved parking units that are conveyed through registered documents can be treated as private spaces. While this provides much-needed clarity, industry experts suggest that more granular definitions are required to prevent future misuse of these spaces by residents or developers.