Karnataka Apartment Ownership Act: Persistent Gaps and the Path Forward
The Karnataka Apartment Ownership Act (KAOA), 1972, was enacted to recognise apartments as heritable, transferable, and mortgageable immovable property.
At the time, Indian property law primarily revolved around standalone land parcels under the Transfer of Property Act, 1882.
Consequently, lawmakers introduced KAOA to address ownership of stacked apartments and the concept of undivided share (UDS) in land.
However, despite its progressive intent, the Karnataka Apartment Ownership Act continues to suffer from structural gaps.
As a result, thousands of apartment owners across Karnataka remain trapped in legal uncertainty—often owning only a super built-up flat without a clear stake in the underlying land.
This article expands upon Anirudh Associates’ earlier analysis and incorporates 2025 legislative developments, High Court rulings, and proposed reforms to highlight where the law fails and how Karnataka can move forward.
Table of Contents
What the Karnataka Apartment Ownership Act Provides?
The Karnataka Apartment Ownership Act enables individual apartment ownership through a registered Declaration executed by the promoter or owner.
This Declaration must contain:
Certified floor plans
Percentage of undivided share (UDS) for each apartment
Description of common areas and facilities
Bylaws governing the association
Once registered, every apartment becomes:
Heritable
Transferable
Mortgageable
Furthermore, apartment owners form an association under KAOA to manage maintenance, collect charges, and regulate common areas.
Importantly, these charges become legally binding on all owners.
KAOA vs KOFA vs RERA: Understanding the Legal Framework
Initially, the Karnataka Ownership Flats Act (KOFA), 1972, regulated builder promotions and flat sales. However, after the introduction of RERA in 2016, KOFA largely lost relevance for new projects.
Meanwhile, the Karnataka Apartment Ownership Act governs post-construction ownership, association formation, and conveyance of common areas. Therefore:
RERA regulates sale and project completion
KAOA governs ownership structure and management
Nevertheless, overlapping jurisdictions continue to create confusion.
The Biggest Structural Flaw: Voluntary Registration
Critically, registration under the Karnataka Apartment Ownership Act remains voluntary. Consequently:
Builders avoid executing Declarations
Owners fail to demand UDS in sale deeds
Associations never form under KAOA
Instead, most apartment complexes register under the Karnataka Societies Registration Act (KSRA), 1960, which was never designed for apartment governance.
As a result, thousands of housing societies operate without legal authority to collect maintenance or enforce bylaws.
Karnataka High Court Clarifies: KSRA Not Valid for Apartments
In multiple rulings, including VDB Celadon (2019), DS Max (2024), and subsequent 2025 judgments, the Karnataka High Court has consistently held:
KSRA applies to charitable, literary, and educational bodies
Apartment complexes must register under the Karnataka Apartment Ownership Act
KAOA, as a special statute, overrides KSRA
Therefore, KSRA-registered apartment bodies lack legal standing for maintenance collection.
UDS and Conveyance: The Core Crisis
Although RERA mandates that developers transfer UDS and common areas within three months of receiving the Occupancy Certificate, compliance remains poor.
Developers often argue that after selling individual UDS shares, nothing remains to convey. Meanwhile:
Encumbrance records still show builder names
Builders re-mortgage land
Owners face loan rejections and mutation failures
Courts in 2025 clarified that, post-UDS sales, developers must still execute conveyance deeds in favour of KAOA societies. This distinction separates RERA handover obligations from individual title conveyance.
Why Maharashtra’s Model Works Better?
Maharashtra amended its law to introduce “deemed conveyance.” If a promoter refuses to convey, authorities can execute the deed on the promoter’s behalf.
By contrast, the Karnataka Apartment Ownership Act contains no such mechanism. Although Bengaluru homebuyers demanded similar amendments in 2023, the legislature has not yet adopted them.
Consequently, owners must approach courts for relief—an expensive and time-consuming process.
2024–2025 Reform: Karnataka Apartment Ownership and Management Act
In 2024, Karnataka replaced KAOA with the Karnataka Apartment Ownership and Management Act, strengthening governance norms.
Key features include:
Mandatory RERA-linked associations
Transparent maintenance accounting
Statutory dispute resolution
Uniform model bye-laws
Additionally, the Karnataka Apartment (Ownership and Management) Bill, 2025, proposes:
Mandatory registered associations
Ban on KSRA societies for apartments
Six-month transition window for existing bodies
Clear distinction between allottee and owner rights
Appellate authority for association disputes
As of January 2026, the Bill is advancing but not yet enacted.
RERA vs KAOA: Who Can Approach RERA?
The Karnataka High Court in 2025 clarified:
Allottees or ad-hoc committees may approach RERA
KAOA associations cannot, as they are not “consumers”
Therefore, early-stage buyers should form allottee groups to seek RERA remedies, while completed projects must rely on KAOA and High Court directions.
RERA vs KAOA: Who Can Approach RERA?
The Karnataka High Court in 2025 clarified:
Allottees or ad-hoc committees may approach RERA
KAOA associations cannot, as they are not “consumers”
Therefore, early-stage buyers should form allottee groups to seek RERA remedies, while completed projects must rely on KAOA and High Court directions.
Impact on Apartment Owners
Without registration under the Karnataka Apartment Ownership Act
Common areas remain under builder control
Maintenance disputes escalate
Builders exploit unused FAR
Owners remain vulnerable to developer insolvency
What Apartment Owners Should Do?
Verify UDS in the sale deed and the Encumbrance Certificate
Re-register society under KAOA or KCSA
Form ad-hoc allottee groups if conveyance is pending
Approach RERA (as allottees) or the High Court for directions
What Builders Must Do?
Execute the Declaration and conveyance promptly
Disclose UDS transparently
Register associations before occupancy
Failure may attract penalties, interest liability, and adverse court orders.
The Way Forward
Karnataka must urgently introduce deemed conveyance, mandate builder-initiated associations, and impose strict timelines under the Karnataka Apartment Ownership Act framework.
With the 2025 Bill and recent High Court precedents, Karnataka stands at a turning point. Aligning KAOA with RERA will finally secure apartment titles, prevent fraud, and restore buyer confidence.
Anirudh Associates has successfully obtained High Court-directed conveyances, invalidated defective societies, and transitioned over 50 Bengaluru complexes into KAOA-compliant structures, offering end-to-end protection for apartment owners.
