Summary of this article
75% owner consent required for redevelopment.
Older buildings face mandatory structural audits.
Dissenting owners receive compensation protection.
The draft of the Karnataka Apartment (Ownership and Management) Bill, 2026, has been formulated by the Karnataka government to improve the real estate landscape. Under this, a major overhaul of apartment ownership and governance in the state was proposed. This amendment seeks to replace two apartment-related laws that have been in place for more than five decades and are considered inadequate for addressing the realities of modern urban housing.
Among the most significant provisions of the draft is the requirement that at least 75 per cent of apartment owners must consent before a residential complex can be redeveloped. This way, the proposal aims to establish a clear legal framework for ageing apartments, many of which are experiencing damage and some of which can even be declared unsafe to occupy.
Financial Compensation To Minority
The draft further introduces safeguards for owners who do not agree to redevelopment plans. As per the proposal, non-consenting owners would be entitled to compensation of at least twice the market value of their property. This ensures that minority owners are not at a disadvantage when a project receives a go-ahead for redevelopment. This is a simple way to safeguard the interests of the minority. The non-consenting owners would also be entitled to financial compensation of at least twice the market value of their property, as per a report by Moneycontrol.
Another proposed feature is the introduction of mandatory structural audits for much older buildings. Under the draft framework, residential buildings that are more than 30 years old would be required to undergo assessments based on their structural health. Following the initial certification, these buildings are subject to strict periodic inspections every five years. The provision is intended to improve the safety of residents and address concerns related to the ageing housing stock.
The proposed law is expected to establish a unified framework for apartment management and disputes that delay redevelopment, creating safety concerns for the citizens. The government has positioned the draft bill as an effort to streamline ownership, governance and maintenance responsibilities. The government believes the changes are necessary because the existing framework no longer reflects the complexities and dangers of inhabiting these developments.
The draft bill forms part of Karnataka’s broader effort to modernise apartment governance as urbanisation and high-rise housing continue to grow across the state. If implemented thoroughly, the legislation could significantly influence how apartment complexes are managed, maintained, and redeveloped in the coming years.
