The Karnataka government has drafted the Karnataka Apartment (Ownership and Management) Bill, proposing a comprehensive legal framework aimed at strengthening the rights of flat owners and streamlining the management of apartment complexes across the state.

The proposed legislation deals with key issues such as the formation and functioning of apartment associations, ownership rights over common areas, responsibilities of builders and promoters, maintenance charges and redevelopment.

Under the proposed law, both existing and newly constructed apartment complexes will have to register their associations with the designated competent authority. At present, apartment associations are registered under different laws, including the Karnataka Societies Registration Act and the Companies Act. The new legislation seeks to bring apartment associations under a dedicated legal framework.

One of the key provisions of the Bill concerns the rights of apartment owners over common areas and land. Every flat owner will automatically be entitled to a proportionate undivided share in the land as well as the common areas and facilities of the apartment complex.

The Bill also places clear responsibilities on builders and promoters. Within 60 days of obtaining the Occupancy Certificate (OC), they will be required to hand over project-related documents and records to the apartment association. These include approved plans, warranties, maintenance agreements, corpus funds, deposits and other relevant records.

The proposed legislation also seeks to address disputes over maintenance charges, a frequent source of conflict in apartment complexes. Apartment associations will be empowered to recover unpaid maintenance dues, along with applicable interest and costs, through the prescribed legal procedure or by approaching the competent authority.

Maintenance charges are proposed to be calculated on the basis of the super built-up area of individual apartments. However, separate charges may also be imposed for special services or facilities used by particular residents.

Flat owners planning to sell their apartments will have to obtain a certificate from the association confirming that no maintenance or other dues are pending against the property.

The Bill further provides that builders must pay maintenance charges for unsold apartments. Any major structural alteration, reconstruction or redevelopment, or changes affecting the number or size of apartments, will require the consent of at least 75% of the flat owners.

The proposed law also seeks to limit the concentration of power within apartment associations. The term of an executive committee will be restricted to a maximum of two years, while members who have completed two consecutive terms will not be eligible to contest or be nominated for the immediately succeeding term.

If enacted, the Karnataka Apartment (Ownership and Management) Bill is expected to establish a uniform legal framework for apartment ownership and management, while giving flat owners and their associations greater clarity and control over their rights and responsibilities.