Who Controls the Clubhouse? Karnataka's New Apartment Law on Common Areas and Community Facilities

Rs 2 lakh as a clubhouse membership fee at booking, in an example we have chosen, is a familiar line on Bengaluru cost sheets. The harder question comes later: once the flats are sold, who controls that clubhouse, who can use it, and can it ever be sold off? Karnataka's new apartment law answers all three.

Sections 11 and 12 of the Karnataka Apartment (Ownership and Management) Bill, 2026 set the rules for common areas and community facilities. The law was gazetted on 15 October 2026 as Act No. 45 of 2026 and is not yet in force, according to FoxMandal's 16 October update. Our overview of the Act sets out its scope.

The short answer. Under the bill, community and commercial facilities in a project, such as a clubhouse, are common areas unless the declaration expressly says otherwise, and charging user fees does not change that. Management of common areas vests in the owners' association. No promoter, owner or anyone else can keep exclusive control, restrict lawful use or levy fees except as the Act or bye-laws allow. Outsiders cannot use the facilities on a regular or commercial basis. Common areas cannot be converted into saleable or private space without owners' consent, and their extent cannot be cut without the sanctioning authority's consent. The trade-off: the declaration can carve a facility out of the common areas, so the protection is only as strong as what the declaration says.

Is the clubhouse a common area?

By default, yes. Section 12(1) says community and commercial facilities forming part of the project are treated as part of the common areas and facilities unless the declaration expressly provides otherwise. Section 12(3) says that levying user charges or membership fees for any such facility does not alter its character as part of the common areas.

That matches the RERA position. The Ministry of Housing and Urban Affairs' FAQs on the RERA Act, dated July 2025, say that section 2(n) of RERA defines common areas to include community and commercial facilities, which are an integral part of the project to be handed over to the association of allottees. We explained in our guide to common areas and clubhouses under RERA how community facilities are meant to pass to the association of allottees.

Who manages common areas, and can anyone charge for them?

Section 11(9) vests management, maintenance, repair and administration of common areas in the owners' association. Section 11(8) says no promoter, apartment owner or other person shall retain exclusive control over, restrict the lawful use of, or levy any fee or charge for the enjoyment of the common areas and facilities, except as the Act or bye-laws provide.

Section 12(2) lets the association regulate access to community and commercial facilities and levy reasonable user charges or fees in line with the declaration and bye-laws. So fees for, say, a swimming pool are allowed, but they are set through the association's bye-laws, not by a promoter or an operator acting alone.

Every owner, under section 11(7), may use common areas for their intended purpose without hindering or encroaching on other owners' rights. Section 11(10) gives the association a matching right of access to any apartment during reasonable hours, after notice, where needed to maintain, repair or replace common areas or prevent damage, and without notice in an emergency. Read together, these provisions treat common areas as a shared asset run by the owners' own body, with equal use as the starting point and any charges set through the bye-laws.

Can outsiders use your clubhouse?

Only occasionally. Section 12(4) says community and commercial facilities shall primarily serve the project's owners and occupiers, and access by others shall not be permitted on a regular or commercial basis. Any proceeds from use by others go into the association's common capital, to be used under the Act and bye-laws.

For buyers, this matters because outside commercial memberships could compete with residents for the same facilities. If a brochure promises outside memberships or a third-party operator, ask how that fits with section 12(4), and get the answer in writing before you pay any clubhouse fee.

Can common areas be sold off or shrunk?

Section 11(11) says no part of the common areas shall be converted into saleable or private space or otherwise disposed of, except with the consent of the apartment owners under the Act. Section 11(12) says the extent or character of the common areas as specified in the declaration or sanctioned plan shall not be reduced, altered or encumbered without the consent of the sanctioning authority.

Section 11(6) adds that common areas remain undivided and no owner or other person can seek partition of any part of them while the property is under the Act; any contrary covenant is void. Section 11(3) says each owner's proportion of undivided interest, once recorded in the declaration, is permanent and can be changed only with the consent of all owners through an amended, registered declaration.

Section 11(2) says each owner's undivided interest in the land and common areas is in the ratio of the flat's private area to the total private area of all apartments, and must be specified in the declaration and the deed of transfer. Section 11(4) says this interest cannot be separated from the flat and is deemed conveyed or encumbered with it even if the instrument does not mention it.

Section 11(5) adds that the undivided interest in land shall be recognised as heritable and transferable immovable property and reflected in revenue records, khata and mutation registers. That gives owners a reason to check that municipal and revenue records, not just the registered deed, correctly show their undivided share once the law is in force.

Who can go to court over common areas?

Section 56 lets the association, acting through its executive committee, start, defend or conduct legal proceedings in a representative capacity about the protection, preservation, management or use of common areas, or matters affecting the collective interests of two or more owners. Proceedings may be brought in the association's name.

Section 56(3) protects individual owners: it does not affect any owner's title or undivided share, does not stop an owner suing in their own name about their flat or its rights, and does not let the association transfer, relinquish or compromise owners' proprietary rights except with the consent the Act requires. Section 57(3) similarly says association decisions cannot alter an owner's title or undivided share.

What if the declaration, bye-laws and your agreement disagree?

Section 58 sets an order. Where the declaration, bye-laws, agreement or deed is inconsistent with the Act or rules, the Act and rules prevail, and the inconsistent provision is void to that extent. Between the documents themselves, the declaration comes first, then the bye-laws, then any agreement, deed of transfer or other instrument.

For a buyer, that means a clause in your sale agreement reserving the clubhouse for the promoter would give way to a declaration that treats it as common area, and both would give way to the Act. Section 53(3)(c) also lets the competent authority decide disputes over the calculation of undivided share and matters recorded in the declaration.

What should a Bengaluru buyer check about common facilities?

If you are comparing projects with large amenity blocks, such as Between The Greens in Varthur, use the bill as a checklist:

1. Ask whether the declaration will treat the clubhouse and other community facilities as common areas.
2. Read any clause in the agreement that reserves a facility for the promoter or a third-party operator.
3. Ask what the clubhouse membership fee on the cost sheet covers, who will hold that money, and whether it passes to the association.
4. Check whether outside memberships are planned, since section 12(4) bars regular or commercial outside use.
5. Compare the common areas in the brochure with the sanctioned plan, since section 11(12) protects what the plan and declaration specify.
6. Confirm that your undivided share in land and common areas will be stated in the deed of transfer.
7. After handover, check that khata and mutation records reflect your undivided interest, as section 11(5) contemplates.

Frequently asked questions

Is a Bengaluru project's clubhouse a common area under the new law?

Section 12(1) of the bill says community and commercial facilities forming part of the project are treated as part of the common areas and facilities unless the declaration expressly provides otherwise. Section 12(3) says levying user charges or membership fees does not change that character.

Can a builder keep control of the clubhouse or charge owners to use it?

Section 11(8) of the bill says no promoter, apartment owner or other person shall retain exclusive control over, restrict lawful use of, or levy any fee for the enjoyment of common areas and facilities, except as provided under the Act or the bye-laws.

Can outsiders become paying members of my project's clubhouse?

Section 12(4) says community and commercial facilities shall primarily serve the project's owners and occupiers, and access by others shall not be permitted on a regular or commercial basis. Any proceeds from such use form part of the association's common capital.

Can common areas be converted into flats or shops later?

Section 11(11) says no part of the common areas shall be converted into saleable or private space or otherwise disposed of except with the owners' consent under the Act, and section 11(12) says their extent or character in the declaration or sanctioned plan cannot be reduced or altered without the sanctioning authority's consent.

This article summarises the Karnataka Apartment (Ownership and Management) Bill, 2026 as introduced and a law firm's update on its enactment, for information. The fee figure is illustrative. The final Act and rules govern; it is not legal advice.

Last updated 2026-11-12. PropNewz Team.