If a later change in planning rules lets an apartment complex build more, through a higher FAR or FSI for example, the extra development potential now belongs to the flat owners collectively. It is shared in proportion to each owner's private area. This is in the Karnataka Apartment (Ownership and Management) Act, 2026, which received the Governor's assent on 9 October.
What else is in the Act
- It covers projects of more than eight flats, old and new. Government buildings are excluded, as are plotted and villa layouts whose amenities are handed over to the local authority.
- A promoter must file a project declaration within 60 days of the occupancy certificate. It records each owner's undivided share in the land and common areas. The penalty for not filing is ₹1 lakh or more.
- Where flats were sold before the Act came into force, the association must apply for registration within three months of its commencement.
- Handing over management does not end the promoter's obligations under the real-estate regulation law, including liability for structural defects.
- It replaces the two 1972 laws on flat and apartment ownership.
What it means for developers
Under the Act, development potential created by a later rise in FAR or FSI belongs to the flat owners, not the promoter. For developers planning to use future FAR in a later phase, or to redevelop an existing complex, that potential now has to be secured from the owners' association. The declaration due within 60 days of the occupancy certificate adds a compliance step at handover.
Still to come
The authority that will register associations has not been named; it is expected to be the urban development department. Model bye-laws will be published in draft for at least 30 days of public comment.