• Carpark covered in sales deed

Hi Sir,

I was looking over Appartment to purchase and happened to cross that Vaishnavi Groups are charging for Car park Rs 2,50,000. Upon asking whether they will include in all essential documents about it. The reply given is "Regarding Car Parking we give covered car parking and it will mentioned in your Sale Deed." 
1.) What is Sales Deed? 
2.) How far it will beneficial? 
3.) What are the risk involves? 
4.) Whether any other documents this Carpark which will be paid has to be mentioned in?

Please looking forward to guide me on same.
Asked 5 months ago in Property Law from Bangalore, Karnataka
Religion: Hindu

1) Sale deed is agreement between buyer and seller i.e. Between builder and you regarding you purchasing the flat and builder selling to you is called sale deed. Under its all mutation history, terms and conditions, mou, price etc mentioned in it.

 

2) This is authentic document and its legal.

 

3) Risk involve you have to read indemnity clause very carefully and car parking as per RERA law. As per SC order builder are not allowed to sell car parking.

 

4) Check RERA permission for car parking selling.

Ganesh Kadam
Advocate, Pune
6426 Answers
47 Consultations

4.9 on 5.0

Sale deed is legal document that the sale of a property has been made in favour of the buyer ...

 

2) builder is charging you offically for sale of car parking slot 

 

3) builder cannot charge for car parking slot as it forms part of common area for benefit of all members 

Ajay Sethi
Advocate, Mumbai
61317 Answers
3721 Consultations

5.0 on 5.0

1. Sale deed is document or registered  deed of sale through which seller sales property to buyer 

2. See if car parking is slit or falls under common area of socitey then it would only be alloted even if mentioned is sale deed . The parking can be only alloted if not garage it cannot be sold.

3. The society can change allotment after it's formation.

Legally a car park which is not garage cannot be sold and builder cannot charge money for it it would be just alloted.

Shubham Jhajharia
Advocate, Ahmedabad
15317 Answers
63 Consultations

5.0 on 5.0

1.The sale deed is a document that that is signed by both the party and registered with the registrar. The sale he defi the property and its surroundings along with both the parties and by the registration of this the procedure is entitled to get the property transferred in his name.

2.The sale deed is ownership document that is required to claim the title of the property.

3. You have to make sure that the property you are purchasing is properly enumerated in the sale deed along with the compensation paid for that to keep the record and the same is registered after signature of both the parties and necessary registration procedures that is followed in the registrar office.

4. Has agreed by the first party the car parking detail bill also appear in the sale deed which give you the title of the car parking space

 

Vimlesh Prasad Mishra
Advocate, Lucknow
4900 Answers
12 Consultations

4.9 on 5.0

Sale Deed is a legal document describing the transfer of right, title and ownership of Property by a Seller to a Purchaser at a price either fully paid or to be paid in installments at a future date.

You may add in the sale deed that the apartment comes with one car parking space in the stilt area giving reference of the area of the stilt floor. The builder should make markings in the stilt parking area demarcating the parking space for all the flats in which case each one will have a designated parking space.

Mohammed Mujeeb
Advocate, Hyderabad
7067 Answers
3 Consultations

4.5 on 5.0

Dear Sir,

My answers are as follows:

  • What is Sales Deed?

Ans: Sale Deed is a Document under which you get title to the flat and also the space to park car.

  • How far it will beneficial?

Ans: Without such mention you cannot have title over such car space. Get copy of sale deed and show to any expert in person and get full explanation.

  • What are the risk involves?

Ans: If it is not mention then you will have risk of not getting car space.

  • Whether any other documents this Carpark which will be paid has to be mentioned in?

Ans: Ask the vendor to mention in the sale deed specifically the amount paid towards car parking space.

Kishan Dutt Kalaskar
Advocate, Bengaluru www.kishanretiredjudge.com
3970 Answers
92 Consultations

5.0 on 5.0

Dear Sir,

The following information may kindly be read and it may useful to you.

Can car parking be sold under RERA?

Ravi Singh, 30, recently got the possession of his 3BHK flat in Greater Noida. The developer had made him cough up Rs 2 lakh for an open parking space which, under RERA, now forms a part of the common area. Under the new law, can developers sell parking space to home buyers?

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.

Haryana RERA executive director, Dilbag Singh Sihag says that a developer is fully entitled to `sell covered parking but open parking cannot be sold. “If a developer has spent money on making a parking area then he would want to recover that money,” is his reason. 

“RERA and MahaRERA only speak of covered parking space but the rules do not include open parking. Therefore, open parking area is not covered under the rules,” says senior Mumbai-based lawyer Dipan Merchant.

“This aspect has also been covered by MahaRERA’s FAQ No 9, wherein it has been stated that open parking area is included in the definition of common areas which need to be conveyed to the Association of Allottees after receiving OC and hence sale or allotment of open parking areas by promoters is not permissible,” says Sudip Mullick, Partner, Khaitan and Co.

Explaining further, Mullick adds that the FAQ No 9 permits sale of a garage as is defined in the Act and also sale of a covered car park as defined under the Maharashtra RERA Rules. “Open car parking cannot be sold under RERA, only garages can be sold,” he adds.

Further, the Ministry of Housing & Urban Poverty Alleviation, Government of India vide its FAQ’s dated 17 January 2017, clarified that in accordance with Section 2 (n) of the RERA Act, common areas include open parking spaces and thus, open car parking spaces cannot be sold to allottees.

Adding to this, Rahul Nahar, Founder, Xrbia Developer says that the draft model agreement published by RERA specifically covers consideration for covered parking but “it cannot be sold in isolation”. 

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.

But, what about stilt parking? Does it come under the definition of garage or common areas?

The Supreme Court in the matter of Nahalchand Laloochand Private Limited v/s Panchali Co-operative Housing Society Limited (2010) 9 SCC 536 has held that under Maharashtra Ownership of Flat Act, 1963, observed that the stilt area cannot be treated as a garage. The court further observed that parking areas (open to sky or stilted portion) cannot be excluded from the common area and facilities under MOFA.

In view of the definition of open to sky parking area or stilt portion usable as a parking space is not a garage within section 2(a)-1 of MOFA. The court observed that it is not saleable independently as a flat or along with the flat. “The Bombay High Court had also laid down a similar norm in a judgment. Stilt parking and open parking slots were not treated as garage, and the logical inference was that these could not be sold as a separate, saleable unit,” says Naredco president Dr Niranjan Hiranandani.

It is pertinent to note that RERA does not repeal MOFA and provisions of MOFA apply to the extent not contrary to RERA, adds Merchant.

Anshul Jain, Managing Director (India), Cushman & Wakefield, says that open parking areas form part of the common area, hence, can’t be sold but stilt parking does not fall under the ambit of garage. “Garage can be sold to the buyer independent of the apartment/unit.”

Stilt parking comes under the category of covered parking, says Hiranandani. Adding to this, Hardeep Sachdeva, Senior Partner, AZB and Partners, says, “The RERA rules in some states such as Haryana, Rajasthan and Maharashtra have recognized the concept of stilt/ covered car parking being provided along with the apartment/unit in the draft of the agreement to sell.”

Hence, we may conclude that open car parking is a part of common areas but garages can be sold under RERA. The jury is still divided on stilt parking.

 

 

Netravathi Kalaskar
Advocate, Bangalore
2447 Answers
6 Consultations

5.0 on 5.0

1. sale deed is the document entered between you and builder for allotment of flat purchased by you 

2. if builder is mentioning car park in sale deed, then its good, provided the project is registered with RERA, as covered car park can be sold by a builder under RERA 

3. no risk if above is the case

4. only purchase price for car park. Ask builder to annex the layout clearly identifying the car park with identification number which will be allotted to you and which is attached to the flat you are purchasing

Yusuf Rampurawala
Advocate, Mumbai
3883 Answers
16 Consultations

5.0 on 5.0

If at all you are purchasing a new property and intend to negotiate with the builder then you must know that a builder is not authorized to sell parking spaces as individual real estate units.

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. Same is the case in other states. ... A garage or covered parking also cannot be sold separately as the treatment is same as easement rights.

The builder cannot charge you separately for car parking. The cost of construction, i.e. the sq ft rate, (which apart from your apartment, includes the cost of common areas) should include one car parking space. All agreements making such provisions or all receipts for parking are illegal.

As per the general practice in the market, the developer, by the agreement of sale, sells only the ‘flat’ and the purchaser has rights in respect of only the flat and no other portion of the building.

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.

T Kalaiselvan
Advocate, Vellore
51430 Answers
612 Consultations

5.0 on 5.0

Dear,

     -  Sale deed is contract between you and seller.

        In sale deed full area, no. and all the benefits and duties  related with that property 

        clearly mentioned. You pay also pay stamp duty for that.

     -  It is beneficial for purchaser. It will give all the rights to you on that property.

    -   No risk involves after this.

    -  If seller provide extra document to other purchasers than you also demand from seller

       otherwise not required.   

Tarun Agarwal
Advocate, Jaipur
633 Answers
2 Consultations

4.9 on 5.0

1. IF Car space is not a closed Garage, THEN it would be illegal to Sell /Purchase any such Car park, more so since non-FSI spaces CANNOT be sold /purchased and all such non-fsi spaces are classified as Common Open Spaces.

Keep Smiling .... Hemant Agarwal

Hemant Agarwal
Advocate, Mumbai
1813 Answers
10 Consultations

5.0 on 5.0

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