For years, apartment owners in Karnataka have struggled with the same set of disputes: Who owns the parking space? What exactly counts as a common area? How should maintenance be collected? What happens when an ageing building needs redevelopment? And what rights do flat owners have over the land beneath their homes?The draft Karnataka Apartment Ownership and Management (KAOM), 2025, bill has now attempted to answer these questions by laying down a common legal framework for apartment communities. Here are six of its most significant provisions.Land Rights: Protecting Owners’ ShareThe bill seeks to clarify long-disputed questions over land ownership by recognising every apartment owner’s undivided and proportionate right in the project land and common areas. These rights will remain attached to the apartment and pass with its ownership, though they will not confer exclusive ownership over any specific portion of land or common facilities.The promoter must disclose all mortgages, charges and encumbrances on the project land before transferring apartments. No apartment can be conveyed unless the necessary release or no-objection certificate has been obtained from the mortgagee where required.Once an apartment is transferred after such clearance, it cannot be affected by mortgages created earlier by the promoter, although those mortgages may continue over unsold units. Individual owners may mortgage their own apartments and proportionate land rights, but apartment associations cannot create mortgages on behalf of owners. It also bars fresh mortgages or encumbrances on the entire project land after apartments have been transferred, making any such claims over transferred units void.Redevelopment: 75% Consent MustAny redevelopment proposal will require the written consent of at least 75% of apartment owners. The proposal must disclose redevelopment plans, use of development rights or FAR, owners’ rights in the new project, financial arrangements and completion timelines.Once approved, the decision will bind all owners. Those unwilling to participate may opt for compensation of at least twice the market value of their apartment, along with their proportionate share in the land and common areas.Redevelopment agencies must provide financial safeguards such as bank guarantees or escrow arrangements. If work is delayed or abandoned, the association can terminate the agreement, invoke the financial security and appoint another agency. Owners may also constitute a separate redevelopment association to oversee the project.Structural Safety: Audits Must After 30 YearsThirty years after construction, associations must have the building assessed by a certified structural engineer, who will certify whether it is safe, safe subject to repairs, or unsafe.Buildings declared safe must undergo fresh structural assessments every five years. Where repairs or strengthening are recommended, associations must carry them out.If a building is declared unsafe, the engineer must inform both the association and the competent authority. Associations may appeal the finding before an expert committee within 30 days.Parking: Common By DefaultOpen, stilt, basement and podium parking areas are common parking areas unless they qualify as legally recognised private parking spaces.Common parking areas will form part of the project’s common areas and facilities and cannot be sold or transferred independently. Merely marking or allotting a parking slot will not make it private property.A parking space can be privately owned only if it is an enclosed or specifically demarcated built-up unit approved as an independent parking unit in the sanctioned building plan and conveyed through a registered instrument as part of an apartment. Even then, it can be transferred or leased only to another apartment owner within the same project.The provision aligns with court rulings that have held open and stilt parking spaces cannot be sold separately by developers.Maintenance: Clearer Rules For CollectionsApartment associations will assess the cost of operating, maintaining and repairing common areas and recover these as maintenance charges.The bill generally links maintenance charges to an apartment’s proportionate super built-up area, while several provisions governing common expenses use private area as the basis for apportionment.Owners cannot refuse to pay maintenance because they do not use certain facilities. Where a flat is tenanted, associations may recover dues from the occupant without affecting the owner’s liability.To prevent excessive penalties, the bill caps fines for non-payment at one month’s maintenance charge, with all penalties credited to the association’s common capital fund. Developers must pay maintenance for unsold or unallotted units, while unpaid dues may be recovered as arrears under the Act.Common Areas: Defining Shared OwnershipThe bill broadly defines common areas as every part of an apartment project, except individual flats and project land, that is meant for shared use.These include staircases, lifts, corridors, entrances, fire exits, basements, terraces, parks, gardens, play areas, open parking spaces, storage areas and staff facilities. It also covers clubhouses, spas and other shared amenities, along with essential infrastructure such as electricity and water systems, drainage, waste management, renewable energy systems, tanks, pumps, pipelines and cables.Internal roads, pedestrian pathways, compound walls, gates, stormwater drains and pump rooms are also included. Apartment owners will jointly own these facilities, while associations will be responsible for their maintenance and management. Residents may use common facilities only for their intended purpose and without infringing on the rights of others.Citizens speak“If older apartments must undergo structural audits, builders should also be held accountable for a building’s longevity, while associations should be responsible only for maintenance. Also, there are no clear rules for cultural activities or temporary stalls in apartment premises, leading to frequent disputes among residents,” said Sandhya Bhat, representative, Raheja Residency, Koramangala.The proposed redevelopment provision could create more disputes by encouraging some residents to withhold consent, delaying projects even when buildings urgently need reconstruction, said Uma Mani, representative, Salarpuria Serenity, HSR Layout. “Rules should provide for staggered terms for apartment management committees to ensure continuity and smoother functioning.”Asha GM, resident, VBHC Vaibhava, Anekal-Chandapura Road, said: “We want financial transparency, access to audited reports and strict compliance with safety norms, including fire safety, STP and water management. The new framework should require associations to disclose these details to residents instead of allowing a few individuals to run the system without accountability.”“The draft Bill addresses several key issues, including deemed conveyance of common areas, automatic transition of existing apartment associations, an appellate mechanism for dispute resolution and a redevelopment clause, a first for Karnataka. It also defines responsibilities of promoters and apartment owners, bringing clarity to apartment management, added Vidhya Goggi, resident, RT Nagar.“With rapid growth of apartment communities, a comprehensive legal framework is needed. There should be greater clarity on how maintenance charges are structured, as they are currently calculated on a per-square-foot basis. The transition from the old Act to the new one should also be explained step by step,” said Prabhu Patil, president, Rohan Vasantha Apartments, Marathahalli.Khata bifurcation of individual units is required before flats can be sold, but many builders have been unable to complete the process for two years. Suhas DR, builder and resident, Asha Residencies, Basavanagudi, said, “As a result, buyers who booked flats before Sept 30, 2024, cannot register their properties despite paying lakhs. The govt must resume registrations and expedite khata bifurcation before the Act comes into force.”“The new Bill should create an independent ombudsman, similar to RBI ombudsman, where apartment owners, builders and associations can take complaints and seek legal interpretation. The ombudsman should have authority to issue binding decisions on whether builders or associations comply with the law, reducing prolonged legal disputes. Instead of relying only on a competent authority, the Act should establish an accessible ombudsman dedicated to resolving apartment-related disputes,” added Aaroon Dasappa, flat owner, Tata Promont Apartments, Banashankari III Stage.
