Bengaluru, July 7, 2025 — The Karnataka government is set to introduce a major reform to the Karnataka Apartment Ownership Act (KAOA), with the aim of empowering flat owners, ensuring greater transparency in apartment management, and strengthening ownership rights. The proposed changes come amid growing concerns from apartment owners about outdated provisions and legal loopholes that no longer align with the modern housing landscape.
The current law, enacted in 1972, has been widely considered insufficient for addressing the complexities of contemporary apartment living, especially in urban areas like Bengaluru where vertical housing has become the norm. The new bill aims to bring the state’s apartment laws in line with those of progressive states like Maharashtra, Tamil Nadu, and Telangana, which have already updated their legal frameworks for apartment ownership and resident welfare associations.
Among the key changes expected in the draft bill are clearer definitions of ownership rights, improved financial transparency within apartment associations, better-defined rules for maintenance and management, and a dedicated framework for quicker dispute resolution. The draft is also likely to include provisions that enhance the accountability of developers and association bodies, particularly in the handling of funds and transfer of ownership rights.
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Uma Shankar SR, Additional Chief Secretary to the Housing Department, confirmed that a second-cut draft has been completed and is currently under inter-departmental review. The government is pushing for the revised bill to be tabled in the upcoming legislative session, with the goal of finalizing and enacting it before the end of 2025.
Homebuyer groups have expressed both relief and frustration. While the initiative has been welcomed, many are disappointed with the delays. Representatives from resident forums recalled earlier assurances from Deputy Chief Minister D.K. Shivakumar that the draft would be tabled in 2024. With growing urbanization and the increasing number of apartment dwellers, stakeholders stress the urgency of passing this reform.
The overhaul is also part of a broader push to improve legal clarity in the real estate sector. Recent developments, such as a Supreme Court ruling that land registration alone does not prove ownership, and the state’s initiative to issue digital property title deeds to lakhs of families, underscore the need for legislative modernization.
Additionally, Karnataka has seen a rise in challenges related to expired real estate projects under RERA and gaps in consumer protection for apartment buyers. The proposed law intends to address these issues by clearly defining responsibilities for developers and owners, standardizing maintenance fund requirements, and offering residents stronger legal recourse in case of violations.
If passed, the new act is expected to bring long-needed structure and protection to Karnataka’s urban housing ecosystem. With clear timelines, transparent systems, and stronger rights for owners, the reform promises to enhance the quality of apartment living and build trust among residents, developers, and the state government.
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