Short answer: Before buying into a senior living project in Bengaluru, check four things. Is it registered with Karnataka RERA? Is there a three-way agreement naming the care operator? Is emergency care actually on site? And how do deposits come back? The 2019 national model guidelines set a useful bar, though Karnataka hasn't published its own rules.
- National guidelines, not state law: the Ministry of Housing's 2019 model guidelines for retirement homes are advisory until a state adopts them. We found no Karnataka-specific rules.
- Anyone can buy, only seniors can live there: under the guidelines, residents must be 60 or over.
- Three parties, one agreement: developer, care operator and buyer, with the operator's skills disclosed at sale.
- Maintenance compounds: ₹12,000 a month rising 7% a year is about ₹19.9 lakh over 10 years, not ₹14.4 lakh.
- Our CARE test: contract, access, response, exit.
- What do the national guidelines say?
- Does a senior living project need RERA registration?
- What ownership models will I see?
- What should care and safety look like?
- Worked examples
- The CARE test for retirement homes (our framework)
- Senior living checklist
- Legal and tax note
- Frequently asked questions
- Talk it through with acre&key
- Sources
A retirement home is two purchases in one: a flat and a long-term service contract. The flat follows the usual rules. The service contract is where most of the risk sits. This guide covers both, without naming projects.
What do the national guidelines say?
In March 2019, the Ministry of Housing and Urban Affairs issued model guidelines for developing and regulating retirement homes (PIB; full guidelines). The main points:
| Area | What the guidelines say |
|---|---|
| Who lives there | Anyone can buy, but the home is for residents aged 60 or over |
| Sale | Units can be sold only after RERA registration |
| Agreement | A three-way agreement between developer, service provider and buyer, disclosing the operator's skills |
| Operator | Service providers to be registered with state authorities |
| Deposits | A refundable interest-free maintenance security deposit, returned within three months of a refund request, plus maintenance charges |
| Design | National Building Code and barrier-free standards: ramps, lifts with audio and visual signals, anti-skid tiles, handrails, gas leak detection |
| Care | 24x7 on-site ambulance, a hospital tie-up, a medical emergency room, regular check-ups and emergency alarms |
States were asked to align their rules. We couldn't find a Karnataka notification adopting them, so treat them as a checklist you ask the developer to meet, not a legal right.
Does a senior living project need RERA registration?
Yes, if it crosses the usual limits: more than 500 sq m of land or more than eight units. The guidelines also say units can only be sold after registration. Check the project on Karnataka RERA and read its filings with our RERA project review guide. If possession is late, your rights under Section 18 apply as for any flat; see our delayed possession guide.
What ownership models will I see?
| Model | What you get | Questions to ask |
|---|---|---|
| Outright purchase | A registered flat, usually with a long-term service agreement | Who can you sell to? Does the service contract pass to the buyer? |
| Deposit or right to occupy | The right to live there for life or a fixed term, with a refundable deposit | How much is deducted each year? When and how is it refunded? |
| Rental | A monthly rent and service fee | How much can rent rise, and on what notice? |
The guidelines mainly cover the purchase model. For any other model, the contract is all you have, so a lawyer should read it.
What should care and safety look like?
Go beyond the brochure. Ask to see the medical emergency room, meet the night staff and read the hospital tie-up agreement. Ask how long the ambulance took on its last three calls. The guidelines expect a 24x7 on-site ambulance, police verification of all staff, emergency alarm systems and CCTV in common areas.
Worked examples
These use illustrative figures.
Worked example 1: what maintenance really costs over 10 years
| Assumption | Flat monthly charge | With 7% yearly rise |
|---|---|---|
| Starting charge | ₹12,000 a month | ₹12,000 a month |
| 10-year total | ₹14,40,000 | ₹19,89,569 |
The 7% is an assumption. Ask for the contract's escalation clause and the last five years' actual charges at the operator's other projects.
Worked example 2: a deposit with yearly deductions
Say a right-to-occupy contract takes a ₹40,00,000 deposit and keeps 5% a year (illustrative terms).
| After | Deducted | Refund due |
|---|---|---|
| 8 years | ₹16,00,000 | ₹24,00,000 |
Compare that with what the same money would earn elsewhere, and with the purchase price of a similar flat. Ask who pays the refund if the operator changes.
Worked example 3: who can live there
You're 45 and buy a unit for your parents, aged 70 and 66. Under the guidelines, you can own it, and your parents can live there. You can't live there yourself until you're 60. If you'd want the flat for your own use sooner, a senior living unit is the wrong fit.
The CARE test for retirement homes (our framework)
| Step | Question | Where to check | Red flag |
|---|---|---|---|
| Contract | Is there a three-way agreement naming the operator, and is the model clear? | Draft agreement | Operator "to be appointed" |
| Access | Ramps, lifts, handrails, anti-skid floors, barrier-free bathrooms? | Site visit, sanctioned plan | Steps at the entrance, narrow doors |
| Response | On-site ambulance, emergency room, hospital tie-up, night staff? | Visit at night, tie-up letter | Ambulance "on call" from elsewhere |
| Exit | How do resale, deposit refunds and operator changes work? | Agreement clauses | No refund timeline |
Senior living checklist
- [ ] RERA registration and filings checked.
- [ ] Three-way agreement read by a lawyer.
- [ ] Occupancy certificate in place for ready units; see our OC and CC guide.
- [ ] Carpet area confirmed; see carpet vs super built-up.
- [ ] Maintenance, meals and care costs listed separately, with escalation terms.
- [ ] Purchase costs worked out with our stamp duty calculator.
- [ ] Deposit refund terms and timeline in writing.
- [ ] Hospital tie-up letter and ambulance arrangement seen.
- [ ] Water source confirmed; see our water questions.
- [ ] Spoke to current residents, not just the sales team.
Legal and tax note
This is general information. A property lawyer should read the sale and service agreements, especially for deposit or right-to-occupy models, and advise on title if a family member is buying for parents; our legal checks guide lists the documents. If you're moving property within the family, our gift deed page explains the basics. Ask a CA about tax on deposits, refunds and any sale.
Frequently asked questions
We found no Karnataka-specific rules. The Ministry of Housing issued national model guidelines in 2019, which states were asked to adopt. Use them as a checklist.
Under the model guidelines, anyone can buy, but the home must be used by a resident aged 60 or over. Check the project's own eligibility rules.
Yes, if it has more than eight units or more than 500 sq m of land. The model guidelines also say units can only be sold after RERA registration.
An agreement between the developer, the care operator and the buyer. The guidelines expect it at the sale stage, with the operator's skills disclosed.
The guidelines expect a 24x7 on-site ambulance, a hospital tie-up, a medical emergency room, regular check-ups and emergency alarms. Verify each on a visit.
The guidelines provide for a refundable interest-free maintenance security deposit, returned within three months of a refund request. Check that your agreement says the same.
Usually, but to buyers who meet the age rule for residence. Check the resale clause and whether the service contract passes to the new owner.
It depends on your plans. Buying gives you an asset to sell; a deposit model may cost less upfront but shrinks with deductions. Compare the numbers over your expected stay.
Sources
Checked 19 Oct 2026.
- PIB, Govt issues model guidelines for development and regulation of retirement homes, 6 Mar 2019: https://www.pib.gov.in/Pressreleaseshare.aspx?PRID=1567646
- MoHUA, Model Guidelines for Development and Regulation of Retirement Homes, 2019 (copy hosted by Elderly Care India): https://elderlycareindia.org/media/documents/Model-Guidelines-For-Dev-Regulation-Of-Retirement-Homes.pdf
- MoHUA, guidelines listing: https://www.mohua.gov.in/documents/guidelines
- Real Estate (Regulation and Development) Act 2016, ss. 3, 18 (India Code): https://www.indiacode.nic.in/handle/123456789/2158
- Karnataka RERA, View All Projects: https://rera.karnataka.gov.in/viewAllProjects?language=en
