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:
- 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.
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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.