Parking slot forms part of common area and cannot be sold by builder

2) reason builder is asking cash is he cannot sell car parking slot

3( society can set aside parking slot sale by builder

1. No parking in open area can be sold. The society allots same.

2. Yes covered separate parking spaces can be sold(i.e a garage with 3 walls and one roof can be sold.).

3.letter head is no legal way of selling any immovable property in my opinion it is parking below the flats and are open these parking cannot be sold that why builder is just writing on letter head. you need a registered sale document and payment can be made by cheque and stamp duty need to be paid. In my opinion the builder is cheating you,

4. no you wont be legal owner of parking , parking in common area belong to society and the society can re allot same you cannot claim ownership on that. Builder is asking cash for reason that in future you find it difficult to prove a case against him as there no registered document, no payment proof so that he can save himself from prosecution.

5. The society can allot the car parking including yours.

Builder can merely allot car parking slots but cannot sell car parking slots

Dear Client,

Without registered deed, no actual ownership in immovable property transfer. And registration fees is 2 lacs per parking which may differ from state to state.

1. Parking can be sold? --- It has be to registered.

2. Builder is saying they can sell covered parking? is it right? -- yes, through registered deed.

3. In my case why builder is not accepting payment by cheque? Is there any legal way of buying parking other than on letter head? -- No actual transfer of ownership merely on letter head and payment in cash will be tax evasion by builder.

5. What will be the case after society formation? -- Disputed.

Please help me!!

Asked 13 minutes ago in Property Law from Mumbai, Maharashtra

Religion: Hindu

6. Is there any rule in RERA related to parking? -- layout plan with parking must be registered with RERA, and Building plan approved by Municipal Council.

7. How i can tackle with builder in this scenario? - Demand parking through registered deed,

SC has held that parking slots form part of common areas and cannot be sold

Builder has to disclose number of parking slots in project and number of slots alloyed by him he cannot sell parking slots

No builder can sell parking space in Maharashtra as the Bombay high court has ruled that a stilt parking space is a common parking space available to members of the housing society.

Maharashtra RERA rules defined parking as : “Covered parking space” means an enclosed or covered area as approved by the Competent Authority as per the applicable Development Control Regulations for parking of vehicles of the allottees which may be in basements and/or stilt and/or podium and/or space provided by mechanised parking arrangements but shall not include a open parking.

The details are of the covered parking space and yes booked means already registered.

further you can ask builder to sell the parking vide a registered deed and accept payment by cheque also does your society under rera registrations shows covered parking spaces.

1. After enactment of RERA, parking can be sold by builder

2. Parking can be mentioned in your agreement and separate consideration can be stated in agreement for buying parking

3. If your project is registered with RERA, then builder can sell parking

4. But open car parking cannot be sold

5. Only stilt parking and garage can be sold

6. Open car park is a part of common areas and on society formation will belong to society exclusively

7. If you are buying covered car park then insist for agreement. Pay by cheque only. Not cash

8. A supplementary agreement to main Rera agreement can be signed between you and builder for selling car park to you

9. Also check the sanctioned number of car parks which the builder has disclosed on rera website and request the builder to show you the parking on the layout plan. Its better to have a identification number for the car park being purchased and this should also reflect in the sanctioned plans

1. Since stilt parking is considered to be the part of common area the builder can not charge any extra amount for parking space.

2. However the allotment of parking space would be depending on availability. if it is available then builder is bound to provide you provided you agreed for this.

3. By cash also payment can be made provided receipt of payment is issued.

4. No transfer of any area is possible without a registered deed of conveyance. So mere agreement is not enough

5. Same as above.

6. Yes, same as above.

7. File a case before the consumer forum.

1. Parking spaces which are FSI-based can be Sold /Purchased.

2. Non-FSI based parking CANNOT be sold /purchased. It shall be a punishable offence.

Keep Smiling .... Hemant Agarwal

1. Parking can be sold?

No, The car parking is a part of the society's common area which cannot be sold. The developer has no right to charge for this space. In 2010, the Supreme Court had held that developers had no right to sell parking to apartment-owners, including stilt parking or garages.

2. Builder is saying they can sell covered parking? is it right?

In 2013, the Bombay High Court ruled that approved parking spaces within a building were common areas for society members and could not be sold. Developers circumvent the restriction by collecting payment for car-parking spaces in cash.

Having failed to curb this illegal practice, the state government on Thursday legalised the sale of parking space. The draft rules for implementation of the law governing real estate were notified by the state Thursday. Under the new rules, approved parking spaces, both covered and open, can be sold. In a bid to regulate it, the government has mandated that developers must formally disclose details of this sale. The government has also permitted builders to demarcate such parking spaces sold. Prevailing rules grant the cooperative housing society the powers to distribute parking space among members.

3. In my case why builder is not accepting payment by cheque? Is there any legal way of buying parking other than on letter head?

Buying a parking space on a letter head of the builder is illegal, it is not a title document, hence do not venture into such illegal practice, you will be losing money, energy and time fighting it in a litigation when it is realised that such sale is illegal and invalid.

4. What will happen if i pay him by cash? Is i will be legal owner of parking?

Without proper registered document, no such purchase can be held legally valid, hence beware of it before buying it.

5. What will be the case after society formation?

According to the “Apartment Act” in most states, car parking is a part of the society’s common areas. Since the purchase of parking slots has been deemed illegal, the transaction to purchase would become null and void. Once the housing society is registered, it becomes the owner of all the common spaces of the apartment complex including the parking spots.

6. Is there any rule in RERA related to parking?

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has asked developer Arkade Realty to not to sell open car parking in the project and allow the complainant homebuyer to park his car inside the building premise.

The homebuyer had complained about the developer selling open car parking space in its ready project, while the developer refuted the allegation.

7. How i can tackle with builder in this scenario?

You can make a complaint against the builder for selling the parking space illegally by mentioning it in his letter head to RERA .

A builder has to provide a certain number of parking spaces basis the number of units of houses. As per a mandate from the Mumbai High Court, the builder is not allowed to sell parking spaces outside the FSI consumed. This has been confirmed by the Supreme Court of India too.

But in RERA website there is information related to each project & it states that -

How many covered parkings are available? AND

How many Parking are BOOKED?

BOOKED means is it purchased by buyer?

A builder has to provide a certain number of parking spaces basis the number of units of houses. As per a mandate from the Mumbai High Court, the builder is not allowed to sell parking spaces outside the FSI consumed. This has been confirmed by the Supreme Court of India too.

The RERA or Real Estate (regulation and development), Act, 2016, under section 2(y) defines ‘garage’ as a place within a project having a roof and walls on three sides for parking any vehicle, but does not include an unenclosed or uncovered parking space such as open parking areas.

This is also for the first time that the Act explicitly defines common areas which include open parking area, basement, stairway, elevators, lobby area and parks.

Section 2 (n) of RERA defines common areas while 2 (n)(iii) defines open parking areas while Section 17 says the promoter is liable to transfer to the society title in the common areas and to handover the possession of common areas to the society which presupposes that it cannot be sold to an individual allottee.

The RERA or Real Estate (regulation and development), Act, 2016, under section 2(y) defines ‘garage’ as a place within a project having a roof and walls on three sides for parking any vehicle, but does not include an unenclosed or uncovered parking space such as open parking areas.

Hence, you should pay the builder any amount for such parking in cash, as the ownership as such easement / common usage areas can never be transferred in your name, nor any rights are transferred by way of any letterhead.

Developer is fully entitled to sell covered parking but open parking cannot be sold.

Yes. Booked means part/full consideration has already been paid for the same.

1. Parking can be sold?

Answer: No they cannot be sold. Please refer this: https://economictimes.indiatimes.com/wealth/real-estate/maharashtra-rera-reiterates-selling-open-car-parking-space-not-allowed/articleshow/62186433.cms

2. Builder is saying they can sell covered parking? is it right?

Answer: Ask them under what rule, law or regulation is it written that parking can be sold;

3. In my case why builder is not accepting payment by cheque? Is there any legal way of buying parking other than on letter head?

Answer: The builder tries to sell parking, because it is illegal and can obtain black money through this route;

4. What will happen if i pay him by cash? Is i will be legal owner of parking?

Answer: If you pay by cash, the builder will own black money. No you will not be legal owner;

5. What will be the case after society formation?

Answer: Only after draw of lots can the parking be given by the society;

6. Is there any rule in RERA related to parking?

Answer: RERA is very strict on the no sale of parking space. This is because it forms part of the common areas of the building. Please refer this again: MahaRERA has reiterated that “as per the Act, Rules and Regulations, the respondent (the developer) cannot sell open parking space, which has to be handed over to the legal entity (co-operative housing society) of the allottees when it is formed.”

7. How i can tackle with builder in this scenario?

Answer: Show him this order of RERA as mentioned in the newspaper article;