Karnataka set to revamp Apartment Law to empower homebuyers and strengthen governance

In a major policy move, the Karnataka government is gearing up to repeal its outdated Karnataka Apartment Ownership Act, 1972, and replace it with a new, RERA-aligned legislation aimed at safeguarding the interests of apartment owners and improving community governance.

Also Read:India strengthens strategic ties with Maldives: Rs 4,850 crore credit, UPI launch & trade boost

The current law, nearly five decades old, has failed to keep pace with Bengaluru's vertical growth and complex housing landscape. Ambiguities around land titles, delays in handing over common areas, and the absence of effective dispute-resolution tools have left apartment dwellers in legal limbo. Builders often retain control over key decisions, leaving homeowners powerless.

The proposed legislation promises sweeping reforms. It will make it mandatory for developers to hand over land and common assets to Apartment Owners Associations (AOAs) within a stipulated period. AOAs will also be automatically formed and registered once 60% of units are sold, giving residents immediate legal standing. A dedicated enforcement wing under RERA will be tasked with dispute resolution, penalty enforcement, and compliance oversight.

Governance within AOAs will also become more transparent, with requirements for audited financial reports, clear maintenance fund tracking, and digitized records. The new law will plug critical gaps left by RERA, particularly in builder accountability, recovery mechanisms, and community-level regulation.

Experts believe this move will help Karnataka catch up with progressive states that have already modernized their housing laws. Bengaluru’s thousands of apartment complexes stand to benefit significantly from enhanced clarity, reduced builder interference, and empowered resident communities.