• Assigned parking spot owned by seller but not negotiated in the sale to the buyer

Reference: Seller owns the Shop (bought long ago. And he also owns the Assigned parking spot, which was bought much later "separately" with a Parking Assignment letter (which says assigned to the Shop). Shop Documents don't have anything mentioned about the Parking.The seller is selling the Shop but does not want to include the Parking.

Parking wasn't included in the Shop Selling Marketing Offering (it stated that "Parking Available under the Price"). 

The shop is being negotiated without a parking spot, to make a sale. And the Sale/Conveyance Deed is prepared (agreeable to both Seller & the Buyer), not showing/including the Parking Spot.

But the Tenant occupying the Shop under the L&L Agreement was allowed to use the Parking and it is mentioned on the L&L Agreement. 

Now the Shop is being sold to the Buyers and Sale Conveyance Deed is prepared but not including the Parking Spot. But the Buyers will be having the same Occupant (existing Licencee/Tenant) going to continue using the Shop with same L&L Agreement (which shows the Parking is allowed for the Tenant to use)

How to handle this situation legally so the Seller won't feel he is doing anything wrong and the Buyer can't blame the Seller later on?
Asked 1 day ago in Property Law
Religion: Hindu

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10 Answers

1) seller cannot retain parking slot if he sells the shop 

 

2)parking slot is incidental to his membership in society as shop owber 

 

3) don’t but the shop I’d parking g slot not part of sale deed 

 

4) society will not permit seller to retain parking slot if he is no longer member of society 

Ajay Sethi
Advocate, Mumbai
99785 Answers
8145 Consultations

 

If slot not sold to buyer then his tenant cannot use the parking slot 

Ajay Sethi
Advocate, Mumbai
99785 Answers
8145 Consultations

The seller must clearly state in the sale deed that the parking space is not the property attached to the shop and the shop is sold without parking space and it was only a  permissive right granted to the tenant by the seller.

The seller can insert the clause or a covenant stating that:

It is expressly agreed and declared that the assigned parking space bearing No... is not a part of the sale, it is not appurtenant to the shop, and no right, title or interest or easement therein is transferred to the purchaser under the said sale deed.  That the purchaser has independently verified and accepted that the said parking space continues to vest exclusively with the seller.

You may also disclose in the sale deed that the purchaser is aware that under the existing leave and license agreement, the licensor had permitted the licensee to use the said parking space purely as a permissive facility, which permission does not carry any transferable, heritable or enforceable right. 

 

The above clauses will protect the seller's title, interests and rights in the assigned parking space.

T Kalaiselvan
Advocate, Vellore
89987 Answers
2493 Consultations

You can issue a separate notice to the tenant stating that the parking is allowed only during seller's ownership, that the parking space is personal, revocable and non transferable and the parking will not bind the future owners. 

If at all the tenant would like to continue to take the parking space, then he can enter into a fresh rental agreement with the seller exclusively for this parking space alone and a copy of the acknowledgment of this notice by the tenant may be furnished to the buyer stating that the buyer understands that the parking is excluded, buyer will not claim parking as part of the shop and buyer shall not raise disputes against the seller to parking usage by tenant. 

The buyer should acknowledge this separate notice. 

T Kalaiselvan
Advocate, Vellore
89987 Answers
2493 Consultations

The core issue is that the parking space was acquired independently through a Parking Assignment Letter and does not form part of the shop’s title documents. Accordingly, it can be lawfully and expressly excluded from the sale of the shop, provided such exclusion is clearly recorded in the conveyance.

 

To avoid any ambiguity regarding usage, the parking space should be governed by a separate and independent arrangement. A distinct Leave & Licence Agreement or, preferably, a registered long-term/perpetual lease for nominal consideration may be executed for the parking space. This segregation of rights will conclusively clarify ownership and usage and will effectively eliminate any future disputes or allegations arising from the shop transaction. It should be simple, and no specific clauses or covenants are required. 

Anoop Prakash Awasthi
Advocate, New Delhi
20 Answers

Based on the facts stated by you, the situation is legally manageable, but it must be handled with clear documentation and clean segregation of rights, otherwise it can later give rise to disputes between seller and buyer.

 

First, it is important to understand that the parking space is a separate and independent right. Since it was purchased later through a separate Parking Assignment Letter and is not mentioned in the original shop title documents, it does not automatically transfer with the shop unless expressly conveyed. Therefore, the seller is legally entitled to retain the parking, provided the sale documents are unambiguous.

 

However, the risk arises because the existing Leave & Licence Agreement grants parking usage to the tenant, and the same tenant is proposed to continue after the sale. If this is not addressed properly, the buyer may later claim that parking usage was an implied part of the transaction or that the seller suppressed a material fact.

 

To protect the seller and avoid future allegations, the following steps are strongly advisable:

 

  1. Explicit exclusion in the Sale Deed
    The Sale/Conveyance Deed must clearly and expressly state that:

  • The sale relates only to the shop premises.
  • The assigned parking space is not part of the transaction.
  • No right, title, interest, licence, or easement in respect of the parking is being transferred.
  • The buyer has been fully informed that the seller continues to own the parking independently.



  • A specific recital acknowledging that the buyer is aware that the tenant earlier used parking under a separate arrangement and that such right does not bind the buyer or form part of the sale should be added.
  • Disclosure and waiver by the buyer
    Ideally, obtain a separate written acknowledgment or declaration from the buyer stating that:
    • Parking was not part of the commercial offering or negotiations.
    • The buyer has verified the title documents.
    • The buyer waives any present or future claim against the seller regarding parking.



  • This eliminates allegations of misrepresentation.
  • Handling the existing Leave & Licence Agreement
    This is the most critical part. You should not allow the existing L&L Agreement to continue unchanged, because it grants parking usage.
    The safest course is:
    • Terminate the existing L&L Agreement by mutual consent prior to sale, and
    • Execute a fresh Leave & Licence Agreement between the buyer (as new licensor) and the tenant.



  • In the new L&L Agreement, include a clear clause such as:
    “The Licensor confirms that no parking space of any nature whatsoever is provided or permitted to the Licensee. Any parking earlier permitted by the previous owner stands withdrawn, and the Licensee shall have no right, claim or entitlement to use any parking space in the building or premises.”


    Also include a waiver stating that the licensee shall not raise any claim against the seller or buyer for withdrawal of parking.
  • If buyer insists on continuing the old L&L Agreement
    If, for commercial reasons, the buyer insists on stepping into the existing agreement, then:
    • A tripartite confirmation should be executed among seller, buyer, and tenant stating that:
      • Parking permission was personal to the seller.
      • It automatically stands revoked upon sale.
      • The tenant accepts continuation without parking.

    •  



  • Without this, the seller remains exposed.
  • No wrongdoing by the seller if disclosures are proper
    As long as:
    • Parking is excluded in the sale deed,
    • Buyer’s acknowledgment is recorded, and
    • Tenant’s parking right is expressly withdrawn,



  • the seller is not doing anything illegal or unethical, and future claims by the buyer will not stand.
  •  

     

    In summary, the key is absolute clarity and documentation. The sale deed, buyer acknowledgment, and the revised Leave & Licence Agreement must all align on one point — that the parking space is not part of the shop transaction and that any earlier usage has ceased. If this alignment is achieved, the seller is legally well protected and the buyer cannot later blame or implicate the seller.

    Yuganshu Sharma
    Advocate, Delhi
    967 Answers
    2 Consultations

    1. Ownership of parking space without appurtenant property is against the principle of law.
    2. You can file writ in High Court seeking direction to seller to transfer parking space offering market value for the
    3. Execute a tripartite against among seller, buyer and tenant with clause stating tenant will continue to use parking space but ultimately buyer should acquire ownership of parking through writ petition of negotiations.
    4. Inclusion of clause with parking space is matter of drafting.

    Not AI generated answer.

    Ravi Shinde
    Advocate, Hyderabad
    5133 Answers
    42 Consultations

    You need to check with the society or builder whether the Same was sold to earlier owner through any documents. Whether such sale is permitted in law. If not permitted then you need to seek refund form ealier seller as the said issue can trouble you anytime during sale of said property 

    Prashant Nayak
    Advocate, Mumbai
    34521 Answers
    249 Consultations

    To avoid future disputes, ensure the Sale/Conveyance Deed explicitly excludes the parking spot and clarify this in writing. If the existing tenant continues under a new Leave & License (L&L) Agreement with the buyer as the new licensor, include a clause stating that parking is not included in the license and is not available to the tenant. This protects both the seller and buyer from future claims.

    Shubham Goyal
    Advocate, Delhi
    2078 Answers
    14 Consultations

    To manage this situation legally and prevent future disputes, a clear, documented process is essential. Since the parking spot is a separate asset not included in the sale, its legal separation from the shop’s tenancy must be explicitly resolved before the sale completes. The core issue is that the existing License Agreement (L&L) grants the tenant a right to use the parking, which is an asset the buyer will not own.

    The most secure approach involves the seller acting to formally revoke the tenant's right to the parking spot before transferring the shop. This should be done through a written addendum or variation to the existing L&L Agreement, executed between the seller (current licensor) and the tenant. This document should state that, with effect from a specified date (ideally just prior to the sale completion), Clause [X] of the L&L Agreement granting the right to use Parking Spot [Number/Identifier] is permanently deleted and extinguished. The addendum must be signed by both parties.

    Subsequently, a brand new L&L Agreement should be executed between the buyer (new owner/licensor) and the tenant for the shop premises only. This new agreement must not mention the parking spot at all. Its property description should be strictly limited to the shop unit. To fortify this, a disclosure letter from the seller to the buyer should be annexed to the Sale Deed, explicitly listing the parking spot as an excluded asset and confirming that the tenant’s right to use it has been legally terminated prior to sale. The buyer must then acknowledge this disclosure.

    This sequence protects all parties: the seller legally severs the parking from the tenancy he created; the buyer receives the shop with a clean tenancy agreement granting no parking rights; and the tenant is formally notified of the change. It prevents the buyer from later claiming an implied right or the seller breaching the tenant’s contract, as the tenant’s rights were modified by their original licensor.

    Lalit Saxena
    Advocate, Sonbhadra
    96 Answers

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