Introduction

Immovable property often represents one of the most valuable assets belonging to an individual or a family.

When the owner is unable to manage his or her affairs because of mental incapacity or a disability affecting decision-making, dealing with that property becomes particularly sensitive. A sale may, in appropriate circumstances, become necessary—for example, to meet medical expenses, provide suitable care or accommodation, or otherwise secure the welfare of the person concerned.

At the same time, the law must protect the individual from exploitation, undue influence, improvident transactions, and misuse of property.

The legal framework therefore seeks to balance two important considerations: the practical need to deal with the property and the obligation to protect the rights, dignity, and financial interests of the person concerned.

This issue assumes particular importance in Karnataka in view of a recent decision of the Karnataka High Court concerning the proposed alienation of property belonging to a person with intellectual disability.

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The First Question: Can the Property Be Sold?

The answer cannot simply be stated as either “yes” or “no”.

The legal position depends upon several factors, including the nature of the person’s disability or incapacity, the applicable statutory framework, the existence and nature of guardianship, the ownership of the property, and the circumstances in which the proposed sale is sought.

It is therefore important to distinguish between:

• a person who is unable to make legally binding decisions because of a disability;
• a person for whom a guardian has been appointed under a particular statutory framework;
• a person who has been adjudged to be of unsound mind; and
• a person who may have a mental health condition or disability but is nevertheless capable of making the particular decision concerned.

A medical diagnosis or disability, by itself, should not automatically be equated with incapacity for every legal purpose.

The question of capacity and the appropriate legal mechanism must be examined in the context of the particular case.

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Protection Rather Than Prohibition

The purpose of the legal safeguards is not necessarily to prohibit every transaction involving the property of a person who is unable to manage his or her affairs.

Rather, the objective is to ensure that, where a transaction is permitted, it is undertaken lawfully and in a manner that protects the interests and welfare of the person concerned.

A genuine need to sell property should not become impossible merely because the owner requires legal protection. At the same time, family members or guardians cannot assume that their personal interest or convenience, by itself, is sufficient justification for dealing with the person’s property.

The interests of the person whose property is being dealt with remain central.

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Guardianship and Decision-Making

The legal framework governing guardianship is not uniform for every category of person with disability or mental incapacity.

For persons covered by the National Trust Act, 1999, Section 14 provides for appointment of guardians through the mechanism prescribed under that Act. The National Trust itself describes the role of the guardian as extending to the care of the person and, where applicable, his or her property. The Act also requires guardians to furnish an inventory of the person’s immovable property and annual accounts of the property and assets in their charge.

The Rights of Persons with Disabilities Act, 2016 contains a different framework. Section 14 provides for limited guardianship where a person with disability, despite having been provided adequate and appropriate support, is unable to take legally binding decisions. The statutory concept is based on joint decision-making, limited to a specific period and specific decision or situation.

Therefore, the existence of a guardian does not, by itself, mean that the guardian has unrestricted authority to sell or otherwise alienate the person’s immovable property.

The source of the guardianship, the powers conferred, and the nature of the proposed transaction must all be examined.

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Why Judicial Supervision May Become Necessary

A sale of immovable property is ordinarily an irreversible transaction.

Once the property is transferred and the consideration is received, reversing the transaction may become considerably more difficult.

This is why legal scrutiny becomes particularly important where the owner cannot independently protect his or her interests.

Depending upon the applicable legal framework and the circumstances of the case, judicial involvement may be required to determine whether the proposed transaction adequately protects the person’s interests.

Questions that may arise include:

• Why is the sale necessary?
• Is the proposed transaction genuinely beneficial to the person concerned?
• Is the consideration fair and reasonable?
• Are there potential conflicts of interest?
• How will the person’s share of the sale proceeds be protected?
• How will those proceeds be utilised for the person’s welfare?

The purpose of such scrutiny is to ensure that the transaction serves the interests of the person whose property is being dealt with.

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The Karnataka High Court’s Recent Decision

A significant recent development is the decision of the Karnataka High Court in Aditya Rao v. State of Karnataka, decided on 22 April 2026 in W.P. No. 8361 of 2026 (GM-RES).

The case concerned a person with 75% intellectual disability coupled with mild autism. His parents had been appointed as legal guardians under Section 14 of the National Trust Act, 1999. He held an undivided one-third share in the property, and the guardians sought permission to alienate the property, including his share.

The case raised an important issue because the High Court noted that the existing statutory framework did not provide a comprehensive mechanism governing the alienation of immovable property belonging to persons with intellectual disabilities. The Court referred to this as a legislative vacuum.

In those circumstances, the High Court held that it could exercise its jurisdiction under Article 226 of the Constitution in its parens patriae capacity to safeguard the rights and interests of a person unable to protect himself.

It is important, however, to appreciate the decision in its proper context. It should not be understood as laying down a universal rule that every sale of immovable property belonging to a person with disability or mental incapacity necessarily requires prior permission of the High Court. The decision arose from its particular factual and statutory circumstances, including the existing guardianship and the absence of a comprehensive mechanism for alienation.

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Welfare, Benefit and Protection

The Karnataka High Court emphasised that the guiding considerations were welfare, benefit, and protection of the person with disability.

In that case, the proposed sale consideration was ?3.40 crore, while the guidance value referred to before the Court was approximately ?14.30 lakh. The guardians also undertook to deposit the person’s one-third share of the sale proceeds in a nationalised bank and use the funds for his welfare, including assisted living arrangements.

The Court accordingly permitted the sale subject to stringent safeguards.

Among other conditions, the Court directed that:

• the sale consideration should not be less than ?3.40 crore or the prevailing market value, whichever was higher;
• the one-third share attributable to the person with disability should be separately identified;
• that share should be deposited in his name in a nationalised bank as a fixed deposit;
• the fixed deposit should initially be for at least three years with automatic renewal;
• only the interest should be utilised for his welfare, medical treatment, care, and assisted living expenses;
• the principal should not be withdrawn or encumbered without prior permission of the Court; and
• a compliance affidavit with documentary proof of deposit should be filed.

The decision therefore illustrates an important principle: even where a sale is permitted, protecting the financial benefit accruing to the vulnerable person may remain a central concern.

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The Importance of the Sale Consideration

The adequacy of the sale consideration is naturally an important consideration in a proposed transaction involving the property of a vulnerable person.

A transaction that appears commercially disadvantageous may invite greater scrutiny.

Depending upon the circumstances, it may therefore be appropriate to place before the competent authority or Court relevant material concerning:

• prevailing market value;
• guidance value;
• valuation reports, where appropriate;
• proposed sale consideration;
• the identity and relationship of the purchaser; and
• the circumstances necessitating the sale.

The objective is to demonstrate that the transaction is bona fide and that the person whose property is being sold is not being deprived of its legitimate value.

The Aditya Rao decision illustrates the importance the Court placed upon the financial benefit of the proposed transaction.

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What Happens to the Sale Proceeds?

The protection of the vulnerable person’s interests does not necessarily end with obtaining permission for the sale.

The manner in which the sale proceeds are dealt with may be equally important.

Depending upon the circumstances and the directions of the competent authority or Court, safeguards may include:

• depositing the person’s share in a bank;
• creating a fixed deposit;
• restricting withdrawal of the principal;
• permitting utilisation of interest for specified welfare expenses; and
• requiring accounts or proof of utilisation.

The Karnataka High Court’s decision demonstrates how such safeguards can be incorporated into an order permitting alienation.

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Mental Health Condition, Disability and Legal Capacity Are Not Synonymous

It is important not to assume that every person suffering from a mental health condition or disability is incapable of dealing with property.

Medical condition, disability, legal capacity, and guardianship are distinct concepts.

The applicable legal question may depend upon whether the individual is actually unable to understand or protect his or her interests in the particular circumstances.

In the context of civil proceedings, Order XXXII Rule 15 of the Code of Civil Procedure, 1908 extends the protective provisions relating to minors to persons adjudged to be of unsound mind and also to persons who, though not so adjudged, are found by the Court on inquiry to be incapable, by reason of mental infirmity, of protecting their interests when suing or being sued.

This is primarily a procedural safeguard in litigation; it should not be treated as a general rule determining every person’s capacity to deal with property.

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The Need for Individual Legal Assessment

Before entering into an agreement for sale or attempting to complete a transaction involving the immovable property of a person who cannot independently manage his or her affairs, it is important to determine the precise legal position.

Among the questions that may need to be examined are:

1. What is the nature of the person’s disability or incapacity?
2. Is there an existing guardianship order?
3. Under which statutory framework was the guardian appointed?
4. What powers have been conferred upon the guardian?
5. Is the proposed transaction genuinely necessary?
6. Is the proposed consideration fair and commercially reasonable?
7. What safeguards are required for the sale proceeds?
8. Is the involvement of a Court or competent authority necessary?
9. Are there any potential conflicts of interest?
10. How will the person’s interests be protected after the transaction?

These questions should ideally be addressed before an agreement or other binding transaction is entered into.

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Transparency Is Essential

Transparency becomes particularly important where the person whose property is being dealt with cannot independently protect his or her interests.

The relevant facts should be disclosed fully and accurately to the competent authority or Court wherever such disclosure is required.

This may include the reason for the proposed sale, the circumstances of the person concerned, the nature and ownership of the property, the proposed consideration, the identity of the purchaser, and the intended use or preservation of the person’s share of the proceeds.

A transparent process protects the vulnerable person while also providing greater confidence to purchasers and other stakeholders.

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Conclusion

The sale of immovable property belonging to a person who is unable to manage his or her affairs is not merely an ordinary property transaction.

It involves a broader legal responsibility—to ensure that the person’s property is not lost, diminished, or misused because of his or her vulnerability.

The recent decision of the Karnataka High Court in Aditya Rao v. State of Karnataka demonstrates how, in the absence of a comprehensive statutory mechanism in the particular context before it, the High Court can exercise its parens patriae jurisdiction to protect the interests of a person with intellectual disability and impose safeguards governing the sale proceeds.

The underlying principle is clear: where the law permits property to be dealt with on behalf of a vulnerable person, the transaction must remain firmly anchored in that person’s welfare, dignity, and best interests.

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Final Thoughts

Legal safeguards should not be viewed merely as procedural hurdles.

In appropriate circumstances, they provide the protection that enables a necessary transaction to take place without compromising the rights and financial security of the person whose property is involved.

For families dealing with such sensitive circumstances, obtaining appropriate legal advice before entering into an agreement for sale or taking steps towards registration can help ensure that the transaction is structured in accordance with the applicable legal framework and that the interests of the vulnerable person remain protected.

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MENTO ISAC
Advocate | Proprietor – Mento Associates

Disclaimer

This article is intended solely for general informational and educational purposes and should not be construed as legal advice. The legal position concerning guardianship, capacity, and alienation of immovable property may vary depending upon the nature of the disability or incapacity, the applicable statutory framework, the existing guardianship arrangement, and the facts of the individual case. Appropriate legal advice should be obtained before taking any legal or transactional step.

Introduction

Apartment living has become an integral part of Karnataka’s urban landscape. As apartment communities have grown in size and complexity, issues relating to governance, maintenance, redevelopment, common areas, financial management, and the functioning of resident associations have assumed increasing importance.

Recognising these evolving challenges, the Government of Karnataka has released the draft Karnataka Apartment (Ownership and Management) Bill, 2025 for public consultation. If enacted, the proposed legislation may significantly reshape the legal framework governing apartment ownership and management in the State.

Although the Bill has not yet become law and may undergo changes before enactment, it represents an important legislative development that apartment owners, resident associations, developers, and property professionals may wish to follow closely.

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Why Was a New Legislative Framework Considered Necessary?

The existing legal framework governing apartment ownership in Karnataka was enacted at a time when apartment living was relatively uncommon.

Over the past several decades, rapid urbanisation has resulted in large residential communities where hundreds of apartment owners share common infrastructure, facilities, and responsibilities. This evolution has created practical issues that earlier legislation was not specifically designed to address.

The draft Bill appears intended to modernise the legal framework governing apartment ownership, management, redevelopment, governance, and dispute resolution while recognising the realities of present-day urban housing.

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Objectives of the Proposed Bill

While the Bill remains under consideration, its broad objectives appear to include:

• Modernising the legal framework governing apartment ownership.
• Promoting greater transparency in apartment management.
• Strengthening the governance of apartment associations.
• Providing greater clarity regarding common areas and shared responsibilities.
• Introducing a structured framework for redevelopment of ageing apartment complexes.
• Improving regulatory oversight in matters relating to apartment management.

These objectives reflect the increasing importance of effective governance within modern apartment communities.

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Why This Bill Matters

The significance of the draft Bill lies not merely in the specific provisions it proposes but in its broader recognition that apartment communities today require a modern legal framework capable of addressing contemporary challenges.

As urban housing continues to evolve, questions relating to governance, transparency, financial accountability, redevelopment, and dispute resolution are likely to become increasingly important. The proposed legislation represents an attempt to respond to these changing realities.

Whether every proposal ultimately forms part of the final legislation or not, the Bill has already initiated an important discussion on the future of apartment governance in Karnataka.

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Some Notable Features of the Draft Bill

Although the final legislation may differ, the current draft proposes several noteworthy measures, including:

• A more comprehensive framework for apartment ownership and management.
• Greater clarity regarding common areas and common facilities.
• A designated authority to oversee certain aspects of regulation and dispute resolution.
• A statutory framework relating to redevelopment of ageing apartment buildings.
• Measures intended to improve transparency and accountability within apartment associations.

These proposals indicate an effort to reduce uncertainty and improve the management of apartment communities.

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Redevelopment of Ageing Apartment Buildings

One of the more significant aspects of the draft Bill relates to redevelopment.

Many apartment buildings constructed decades ago are now approaching stages where structural maintenance, extensive repairs, or redevelopment become important considerations.

The draft Bill proposes to establish a clearer legal framework for redevelopment, recognising that such decisions involve balancing the interests of numerous apartment owners while ensuring safety and orderly decision-making.

If enacted, these proposals may provide greater certainty in relation to redevelopment projects.

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Strengthening Apartment Governance

Good governance is not confined to commercial organisations.

Apartment communities also depend upon transparent administration, financial accountability, responsible decision-making, and effective participation by residents.

The draft Bill appears intended to strengthen institutional governance within apartment associations by promoting greater clarity regarding responsibilities, accountability, and management practices.

A stronger governance framework has the potential to reduce disputes while contributing to the efficient management of shared community assets.

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Why Apartment Owners Should Follow These Developments

Although the proposed legislation has not yet become law, it may influence the future rights and responsibilities of:

• Apartment owners.
• Resident Welfare Associations.
• Apartment Owners’ Associations.
• Developers.
• Property managers.
• Financial institutions.
• Legal professionals.

Understanding proposed legislative reforms enables stakeholders to better appreciate the direction in which apartment governance may evolve while also encouraging informed participation in discussions relating to the proposed legislation.

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A Balanced Perspective

It is important to emphasise that the Karnataka Apartment (Ownership and Management) Bill, 2025 is presently a draft proposal.

The Government has invited comments and suggestions from stakeholders before finalising the legislation. Consequently, the Bill may undergo substantial modifications before it is introduced and enacted.

Accordingly, the proposals discussed in this article should not be treated as the law currently in force. Their legal effect will depend upon the final legislation enacted by the State Legislature.

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Conclusion

The draft Karnataka Apartment (Ownership and Management) Bill, 2025 represents an important legislative initiative aimed at modernising the legal framework governing apartment communities in Karnataka.

Whether every proposal ultimately finds place in the final legislation remains to be seen. Nevertheless, the Bill has already initiated an important conversation on apartment governance, transparency, redevelopment, and responsible community management.

As apartment living continues to expand across Karnataka, legislative developments in this area are likely to remain of considerable significance for apartment owners and all other stakeholders connected with urban housing.

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Final Thoughts

Apartment ownership today extends beyond the ownership of an individual residential unit. It also involves participation in a shared community governed by evolving legal principles, collective responsibilities, and sound governance practices.

Remaining informed about important legislative developments enables apartment owners, resident associations, developers, and professionals to better understand the direction in which apartment law and community governance in Karnataka may evolve in the years ahead.

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MENTO ISAC
Advocate | Proprietor – Mento Associates

Disclaimer: This article is intended solely for general informational and educational purposes. It discusses a proposed draft legislation and should not be construed as legal advice or as an interpretation of the law currently in force.

Introduction

For most individuals and families, purchasing immovable property represents one of the largest financial commitments they will ever undertake. Whether it is a residential apartment, a plot of land, or a commercial property, buyers often focus primarily on factors such as location, price, amenities, and future appreciation.

However, many property disputes arise not because the property lacked value, but because adequate legal due diligence was not undertaken before the purchase.

A common misconception among buyers is that the execution and registration of a sale deed automatically guarantee clear ownership and a marketable title. In reality, a registered sale deed is only one component of a legally secure transaction. Questions relating to ownership, inheritance, prior transfers, encumbrances, litigation, approvals, and regulatory compliance can significantly affect the purchaser’s rights.

Prudent property acquisition therefore requires a careful examination of the property’s legal history and documentation before any substantial commitment is made.

The following safeguards may assist prospective purchasers in evaluating the legal soundness of a property transaction in Karnataka.

1. Verify the Title of the Property

The first and most important step is to ascertain whether the seller possesses a valid and transferable title.

This generally involves examining:

• Parent title documents

• Previous sale deeds

• Partition deeds

• Gift deeds

• Settlement deeds

• Inheritance-related documents

• Revenue records and mutation entries

A proper title verification should ideally cover a substantial period so as to identify any defects, gaps, inconsistencies, or competing claims.

The objective is not merely to confirm ownership but also to establish the seller’s legal authority to transfer the property.

2. Check for Encumbrances

A property may be subject to mortgages, charges, attachments, or pending claims.

Obtaining and examining an Encumbrance Certificate (EC) is therefore an important step.

However, buyers should remember that not all legal issues necessarily appear in the Encumbrance Certificate. Certain disputes, claims, or rights may exist independently of the entries reflected in the EC.

Accordingly, the Encumbrance Certificate should be viewed as an important component of due diligence rather than a complete substitute for legal verification.

3. Examine Revenue and Municipal Records

Revenue and municipal records often provide valuable information regarding ownership, possession, and tax compliance.

In Karnataka, purchasers should generally verify:

• Mutation records

• Khata documents

• Property tax receipts

• Relevant revenue records

• Survey and land records where applicable

Discrepancies between title documents and revenue records should be carefully examined before proceeding further.

4. Verify Approvals and Sanctions

In the case of apartments, layouts, and developed properties, it is essential to verify whether the required statutory approvals have been obtained.

These may include:

• Layout approvals

• Building plan sanctions

• Occupancy Certificates

• Completion Certificates

• Relevant permissions from local authorities

Failure to verify approvals can result in practical difficulties concerning occupation, utility connections, financing, future transfers, and regulatory compliance.

5. Check for Litigation

A property involved in litigation may expose the purchaser to prolonged legal disputes.

Reasonable enquiries should be made to determine whether:

• Civil suits are pending

• Injunction orders exist

• Acquisition proceedings have been initiated

• Revenue proceedings are pending

• Tribunal proceedings are pending

A buyer should never assume that the absence of visible disputes automatically means that the title is free from legal complications.

6. Verify Possession and Physical Boundaries

The legal description contained in the documents should correspond with the actual physical property on the ground.

Purchasers should verify:

• Boundaries

• Measurements

• Access

• Encroachments

• Consistency between records and actual possession

Boundary disputes remain one of the most common causes of property litigation.

7. Review Existing Agreements and Restrictions

Certain properties may be affected by existing contractual arrangements or legal restrictions.

Examples include:

• Lease agreements

• Development agreements

• Joint development arrangements

• Family settlements

• Easement rights

• Restrictions on transfer

Such arrangements may significantly affect the purchaser’s rights and intended use of the property.

8. The Importance of Obtaining a Legal Title Opinion

One of the most effective safeguards available to a purchaser is obtaining an independent legal title opinion before entering into the transaction.

A legal title opinion involves a systematic review of the available documents by a legal professional with the objective of assessing:

• Ownership

• Marketability of title

• Transferability

• Encumbrances

• Documentation deficiencies

• Potential legal risks

A title opinion does not merely summarise documents. It seeks to identify issues that may not be immediately apparent to a purchaser unfamiliar with property law and documentation.

Many avoidable disputes could be prevented if purchasers obtained a comprehensive legal opinion before committing substantial funds.

9. Conduct Independent Legal Due Diligence

Independent legal due diligence remains one of the most valuable preventive measures available to a purchaser.

A professional review can assist in identifying:

• Title defects

• Documentation gaps

• Regulatory concerns

• Pending disputes

• Transaction risks

The cost of proper due diligence is often insignificant when compared to the financial and emotional burden of future litigation.

Property Due Diligence Checklist

Before purchasing property, consider whether the following have been verified:

? Title documents examined

? Parent documents reviewed

? Encumbrance Certificate obtained

? Khata verified

? Property tax records checked

? Revenue records examined

? Statutory approvals verified

? Litigation search conducted

? Physical boundaries inspected

? Independent legal opinion obtained

Conclusion

Property transactions should never be approached as purely commercial decisions. They are equally legal decisions requiring careful scrutiny and informed judgment.

A prudent purchaser does not merely ask whether a property is attractive or affordable. The more important question is whether the property is legally secure.

Comprehensive legal due diligence before purchase can significantly reduce risk and help ensure that a valuable investment does not become the subject of future litigation.

Buyers and investors should consider obtaining independent legal advice before committing to a property transaction. Early legal due diligence can substantially reduce legal risk and help protect long-term interests.

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Mento Isac
Advocate & Founder
Mento Associates, Bengaluru

Disclaimer: This article is intended solely for general information and educational purposes. The contents do not constitute legal advice and should not be relied upon as a substitute for professional legal consultation. Specific legal advice should be obtained based on the facts and circumstances of each individual case.

The Real Estate (Regulation and Development) Act, 2016 (RERA) was introduced with the objective of protecting homebuyers and promoting transparency, accountability, and efficiency in the real estate sector. One of its most impactful contributions has been the framework it introduced for dispute resolution.

Why Was RERA’s Dispute Mechanism Needed?

Before RERA, real estate buyers often had no choice but to engage in prolonged and expensive litigation in civil courts or consumer forums. Delays in possession, non-compliance with promises, and unclear grievance mechanisms left many buyers vulnerable.

RERA filled this gap by setting up a dedicated redressal mechanism for quick, sector-specific justice.

The Three-Tier Dispute Resolution Mechanism under RERA

1. Real Estate Regulatory Authority (RERA)

• Acts as the first point of grievance redressal.
• Buyers, promoters, or agents can file complaints for delays in possession, non-adherence to project specifications, false advertisements, etc.
• Proceedings are summary in nature with an aim to deliver justice swiftly.

2. Adjudicating Officer (AO)

• Appointed under Section 71 of the Act.
• Specifically empowered to adjudicate compensation claims relating to delay, interest, or loss due to false information or non-performance.

3. Real Estate Appellate Tribunal (REAT)

• Any party aggrieved by an order of the Authority or AO can appeal here.
• The appeal must be filed within 60 days.
• Further appeals lie with the High Court, but only on substantial questions of law.

  Key Benefits of RERA’s Dispute Resolution Framework

• Speedy Resolution: Unlike traditional courts, RERA is designed to handle cases swiftly.
• Specialized Forum: Sector-specific knowledge ensures nuanced and practical decisions.
• Transparency: All decisions are published on the RERA website, enhancing accountability.
• Buyer-Centric Approach: Empowers homebuyers, often the weaker party in the transaction.

Practical Observations

• Many state RERAs have adopted a digital filing system, making the complaint process easier and more accessible.
• However, implementation varies by state — some RERAs are better staffed and more efficient than others.
• Certain grey areas still exist, especially regarding overlapping jurisdiction with consumer forums and civil courts.

 Final Thoughts

RERA has gone a long way in rebalancing the scales of justice in real estate. Its dispute resolution mechanism is far from perfect, but it’s a step toward restoring the trust of the common man in the homebuying process.

As lawyers, developers, or buyers, understanding the nuances of this system is essential not just for compliance but for upholding ethical standards in the industry.

Let’s hope that with time, resources, and consistent policy support, the RERA dispute redressal framework becomes a model of justice delivery in other sectors too.

BBMP is the agency to approve building plans and issue commencement and occupancy certificates for all residential and commercial buildings in lay outs developed by various government agencies( including BDA, KHB, BMICAPA) in its limits except those developed by KIADB and KSSIDC.

Carpet area: Total usable area within the four walls of an apartment or a commercial space. It may come roughly 70 to 75% of the super built up area.

Built up area: Entire carpet area along with thickness of exterior walls of an apartment and the balcony.

Super built up area: Built up area plus the proportionate share in common amenities like lift area, lobby, corridor etc.

Undivided share in land = (Super built up area of apartment x total land area) / sum of super built up areas of all apartments.

1) Does Karnataka Apartment ownership Act (hereinafter referred to as Act) apply to all apartments in Karnataka?

No. It only applies to those apartments where the property is submitted to the provisions of this act by duly executing and registering a Declaration.

2) What is property as per the Karnataka Apartment ownership Act?

Property under the act means the land, building, all improvements and structures thereon, all easements, rights and appurtenances thereto.

3) Can commercial property be submitted to the provisions of the Act?

No. The property shall be mainly used for residential purposes.

4) Who is the competent authority under the act?

The Registrar of Co-operative societies.

5) What forms the majority of apartment owners?

The apartment owners with 51 % or more of the votes in accordance with the percentage assigned in the declaration to the apartments for voting purposes.

6) Whether each apartment owner is required to execute a declaration under the act?

Yes, each apartment owner is required to execute a declaration under sec. 5(2) of the act. This is different from the declaration u/s. 2 of the act.

7) How is the undivided interest of an apartment owner in the common areas and facilities calculated?

It is calculated as a percentage by taking as a basis the value of the apartment in relation to the value of the property.

8) Is it mandatory to file the copy of declaration and bye-laws in the office of competent authority?

Yes.

9) Is it mandatory to register the declaration and deed of apartment in respect of each apartment?

Yes.

10) Can a property be removed from the provisions of the act?

Yes, all the apartment owners can remove a property from the provisions of the act by an instrument to that effect duly executed.

11) What happens to the status of the property once it is removed from the provisions of the act?

Once it is removed from the provisions of the act the property shall be deemed to be owned in common by the apartment owners.

12) On whom the act is binding?

The act is binding on all apartment owners, tenants of owners, employees of owners and tenants or any other person who may in any manner use the property or any part thereof.

13) In what form the declaration under section 2 needs to be executed and registered?

In form ‘A’

14) In what form the declaration under section 5(2) needs to be executed?

In Form ‘B’

15) Within how many days the declaration u/s 5(2) needs to be filed with the competent authority?

Within 30 days from the date of execution.

16) Within how many days shall the apartment owner file the true copy of deed of apartment in the office of the competent authority?

Within 30 days from the date of execution.

Power of attorney is a very common document used in various transactions in day-to-day life. At the same time there are lots of misconceptions about the same. In this article let us get some first hand information about the various aspects of a power of attorney.

A Power of attorney is a document in writing whereby one person authorizes another person to represent him and to do certain lawful acts. The person who confers the power is called “Principal” and the person to whom it is given is known as “Agent” or “Attorney”. When the Power of attorney is given for a specific act then the same is known as “Special Power Of Attorney”. On the contrary if a Power of attorney is given to a person to do generally various acts and to represent the principal in a wide variety of transactions then the same is said to be “General Power Of Attorney”.

A Power Of Attorney may be revocable or irrevocable. If the person, who gives the power, retains the right to cancel it, then the same is said to be revocable one. On the other hand if this power is not retained, then the same is termed an irrevocable one. Normally, Power of attorneys pertaining to immovable properties, which are given after receipt of considerations are irrevocable ones.

A power of attorney has to be sufficiently stamped and the same may be notarized or registered. Normally those involving immovable properties need to be registered in the office of the jurisdictional sub registrar. Apart from the signatures of the Principal and the Attorney, it is better to have the attestation by two witnesses.

A power of attorney may be granted by one Principal to several agents or several principals to one agent provided there is uniformity in the purpose.

The Power of Attorney is terminated on the revocation of the same by the principal, when the purpose of the instrument is completed, when either of the parties become unsound or dies and when the Principal is declared unsound.

It is a common thing that people leave out important information in registered deeds. Some times errors may creep in such documents. Such omissions or errors are fatal to those documents. People use a rectification deed to correct such mistakes.

In a rectification deed the same parties who were in the original deed, should be made the parties. Normally there is a mention about nature and contents of original deed. Thereafter the error or omission or defect in the earlier deed is described. After that, the change or addition to the earlier matter in the original deed is described in detail.

Normally in Karnataka the stamp duty for a rectification deed is Rs 100/-(Rupees One Hundred Only) and registration fee is Rs 100/- /-(Rupees One Hundred Only). In addition to this, the necessary scanning charges need to be paid. If there is some crucial changes like changes in the area of property, description of the property etc, then the subregistrator is entitled to demand the proportionate stamp duty and registration fee. It is ideal to keep the same witnesses as in the original deed. The rectification deed shall be signed by both the parties and the same shall be witnessed by the two witnesses.

For Future references the original deed and the rectification deed shall be considered together as one document. Only advocates and licensed deed writers are entitled to draft a rectification deed.

The sale agreement holder of a property is not entitled to sell the property to another person for the reason that he does not have absolute rights over the property. In such a case it is very common to enter into an assignment agreement to transfer the rights of the sale agreement holder to another person.

The person who transfers his rights is called assignor. The person who obtains rights through the assignment agreement is called assignee. Normally an assignment is done for some consideration.

Let us take an example. Assume A enters into a Sale agreement with B for the sale of a property, for, say Rs.100/- Here A is the vendor and B is the purchaser. Now B wants to assign his rights to C for a total consideration of Rs.120/-. Here B is the assignor and C is the assignee. The net profit got by B is Rs. 20/-.

Normally, the approval of the original vendor is required for an assignment. For this original owner may be made as a consenting witness. Some builders/owners may insist for a transfer fee for an assignment. The assignee gets all the rights and obligations of the assignor after the assignment agreement is signed and he steps into the shoes of the original agreement holder (assignor). An assignment agreement shall be carefully drafted with the assistance of an experienced advocate.