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Can you sell your car parking slot?

There's nothing new about parking woes. Every day you hear about builders charging between Rs 1 lakh and Rs 15 lakh for a single parking slot along with their flats. Mumbai-based Vishwanath Sahu is among the lucky few on the other side of the fence. When he purchased a flat in the Gorai area of Malad six years ago, the developer offered to sell him a parking slot in addition to the space he was officially allowed to purchase, as there were no takers for it.

"The car park cost me around Rs 1 lakh, but since I had a motorcycle and a car, I thought it would be better to take two slots," says the 39-year-old cinematographer. Today, given the increasing number of car owners in his housing society, there is a shortage of parking space and Saha is keen to capitalise on it. "A member has offered me Rs 5 lakh to purchase my slot. I am planning to sell it, but don't know how to go about it," he adds.


Chances are that Saha will find it a legal nightmare to sell his slot, especially if someone challenges the transaction. This is because of the 2010 Supreme Court ruling, according to which flat buyers need not pay extra money to buy parking spaces, both open and closed, from property developers. The judgement, delivered by Justices RM Lodha and AK Patnaik, rejected real estate development company Nahalchand Laloochand's argument that they were entitled to sell garages/stilt parking areas as separate flats to owners who wanted to use it as a parking.

According to the ruling, "If a promoter does not fully disclose the common areas and facilities, he does so at his own peril. Stilt parking spaces will not cease to be part of common areas and facilities merely because the promoter has not described the same as such in the agreement with the flat purchaser. The promoter has no right to sell any portion of the building which is not a flat."

Ravi Goenka, advocate, Mumbai High Court, explains that though a developer cannot sell the car park to a person who purchases a flat from him, he can "allot the same on a first come, first served basis without charging any money from him". According to him, the housing society has to then take the responsibility for reshuffling the parking spaces to other members at periodic intervals. "The allotted space means that the member has the right only to park his vehicle. He is not the owner of the space and cannot sell it to others at a premium," says Goenka.

The housing society is allowed to frame its own parking rules. Most of them ask for a copy of the vehicle documents before allotting a parking slot. This is to restrict non-members from parking inside the society premises. The rule of thumb is that no member will be eligible for allotment of more than one stilt/covered parking space per flat. If any slots remain vacant for want of applicants, which is sometimes the case for open parking, a second parking space may be allotted to interested members. This procedure is supposed to be followed on an annual basis, provided the empty slots are not required by a member who is yet to bag even one designated parking space.

The bad news

Far from accepting the ruling and living by the book, developers in most cities are actually charging flat owners twice for the same parking space. "In most of the top metro cities, where transactions generally take into account the super built-up area (total area of land where the project is spread divided by the total number of flats), the parking area is also divided and added to it," says Ganesh Vasudevan, vice president of , a Chennai-based real estate portal. This means that the developer has charged flat buyers for the parking space even before possession. Despite having charged for the total land, the developer then sells parking slots at exorbitant rates.

Typically, car parking slots sell for Rs 1-3 lakh in mid-level housing projects and can go up to Rs 10 lakh in premium housing projects in the metro cities. According to Goenka, even if developers take extra money and sell the parking space to the buyer, they take utmost care not to mention it in the agreement as it is illegal and can be challenged in court.

New tricks of the trade

Given that selling parking spaces is a lucrative source of additional revenue for developers, they are trying hard not to forgo it. So they have come up with innovative ways to carry on business as usual. Says Subhankar Mitra, head, strategic consulting (west), Jones Lang LaSalle India: "If developers are restricted from selling slots directly, they find ways to apportion the cost, say, by increasing the charge for the super built-up area or by raising the overall per square foot rate. In other words, property buyers will continue to pay for parking either directly or indirectly."

According to him, many high-end transactions have been known to fall through due to the developer's inability to meet buyer requests for multiple parking slots with each flat. This problem has cropped up in areas such as Bandra, Nepean Sea Road, Peddar Road and the like in Mumbai. In the case of commercial property, the acceptable industry norm is to provide one parking slot per 1,000 sq ft. If a project provides more than this, it can command a premium price, claims Mitra.

The Supreme Court ruling ensures that even if you find a buyer for your parking slot, you won't be able to sell it. However, you may consider renting out the space if it is agreeable to the housing society. As yet, there are no tax implications on such rental income, but it will be better to check with a tax expert before doing so.


Source : Can you sell your car parking slot? Find out your legal rights - Economic Times
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  • Supporting the illegality is a crime and our friend seem to be been doing exactly that... When one can fight for a what is legal in this country, why should the buyers get out of DLF? These builders are grossly violating Indian laws and regulations and eating into buyers rights in open light... They must be pulled up and rightly done so by NTH guys and esp Nitin, who have put a brave face in highlighting the plight of buyers and being in forefront of the change.

    Hatsoff Nitin.
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  • Originally Posted by Lazybell
    the question is not to be someone...

    it is to be Jefferson or Baba...

    ps. most times it is better to be no one; for posterity at least...


    And its not about being a difference between Jefferson and Baba.. Of Jefferson I doubt you know hardly anything about... that man never stood for Crony Capitalism... DLF is a Story about a Crony Capitalist who has deep pockets and a huge political clout...

    I would dare you to debate with me on that....
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  • Originally Posted by Lazybell
    Dear Nitin,

    I have the highest regard for your right to do the best for a cause you believe in, and the highest respect for the fact that you are cocretising your beliefs through your painstaking efforts.

    What I intend to point out is the larger philosophical issues involved, so that efforts of hard working and conscientious individuals like you are not channelled into achieving the exact opposite of intended outcomes.

    I will post a detailed comment sometime over the weekend.

    Regards,
    Lazybell.


    In the name of Philosophy; you are talking absurd nonsense.

    Plato talked of Idea as the supreme being.He encouraged focus of the consciousness on the eternal principals rather than the transitory mundane interests.

    Aurbindo talked of upward journey of the collective consciousness by collective effort.
    In Today's terminology it would be called
    "Enlightened Self Interest"
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  • Thank you all for the support. Believing in a cause is half the battle won.

    The problem today is that most of us are not even aware of our rights. As a lawyer having gone through a lot of acts i know understanding these are difficult even the builder buyer agreements are written in a manner that for a layman it is extremely difficult to understand.

    If one is not aware of the rights what will he or she fight for.

    For me the last 4 years of working in coordination with different RWAs like belaire owners association, Park place RA (both of which have won the CCI case), silver Oak society RWA have been great learning experience.

    I think the customer of today wants a fair deal & is no longer willing to let builders make a fool out of him. If I through this wonderful forum can help few of my friends realize their rights it would be positive step towards this awakening.

    Thank You...
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  • Being focused on an agenda...

    it takes its toll...

    one got to take all comers seriously... :p :p


    Originally Posted by nbkp4gk
    Thank you all for the support. Believing in a cause is half the battle won.

    The problem today is that most of us are not even aware of our rights. As a lawyer having gone through a lot of acts i know understanding these are difficult even the builder buyer agreements are written in a manner that for a layman it is extremely difficult to understand.

    If one is not aware of the rights what will he or she fight for.

    For me the last 4 years of working in coordination with different RWAs like belaire owners association, Park place RA (both of which have won the CCI case), silver Oak society RWA have been great learning experience.

    I think the customer of today wants a fair deal & is no longer willing to let builders make a fool out of him. If I through this wonderful forum can help few of my friends realize their rights it would be positive step towards this awakening.

    Thank You...
    CommentQuote
  • it is being in the position of being a regular RE Consultant...
    wondering after annoying... oh hell !!! that could have been a client...

    could have been... might have been... would have been... looked like one... certainly looked like one...


    Originally Posted by Lazybell
    Being focused on an agenda...

    it takes its toll...

    one got to take all comers seriously... :p :p
    CommentQuote
  • One got to take all "Legitimate" points seriously but not what you brokers and dealers say seriously.... You have vested interest in making fool of people in thamaofy units.
    Lazybell your above 2 posts make no sense but looks like giving a hint of threat. Stay off and dnt dare threaten people fighting for their cause
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  • Originally Posted by rahul05
    Well you seem to sound so familiar to Valasala the CSM at DLF. Wonder if you share the same hormones.

    I for one would not hesitate calling people like you dumbasses who are either paid by DLF to use such language or are benefiting by scamming people along with DLF.

    Everyone buys things for their benefit. There is nothing WRONG in buying for YOUR benefit.

    YOU are not a DLF property owner else you would know the pain the DLF property owners have had to face over the past 5-6 years. I have 3 DLF properties. The Last was the biggest mistake of my life.

    And as per Nitin, I know the guy personally, he has worked hard and tirelessly for the owners of NTH to keep their interests in place.

    Wonder why you are so upset with someone asking for his rights under the Indian Laws. Are you one of those whom the law is catching up to?


    Rahul you are right this guy is either a broker with huge dlf inventory or a DLF official.
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  • Go learn how to speak or write in English and then come here and debate..There is a school right where you are "Angrezee Bolna Seekho"....

    Cholo angrezi meing nahi to hindi mein hi bata de tu bolna kya cha raha hai...


    Originally Posted by Lazybell
    it is being in the position of being a regular RE Consultant...
    wondering after annoying... oh hell !!! that could have been a client...

    could have been... might have been... would have been... looked like one... certainly looked like one...
    CommentQuote
  • Hi Nitin,
    Any reply from DLF on your letter
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  • Ive always heard that builders cannot charge for parking but every builder did it.
    Then I heard that they cannot charge for open or stilt parking (as that is anyway charged in the super-builtup area) but they can charge for basement parking.
    Nowadays for new bookings most builders seem to bundling this cost in BSP itself to comply with the rule.
    So my qs are :
    i) For builders who have already charged for parking separately in underconstruction projects, has any builder agreed to refund it yet.
    ii) Is there any rule which says they can or cannot charge for basement level parkings (since they obviously expend costs on creating these).
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  • Originally Posted by sh-saxena
    Ive always heard that builders cannot charge for parking but every builder did it.
    Then I heard that they cannot charge for open or stilt parking (as that is anyway charged in the super-builtup area) but they can charge for basement parking.
    Nowadays for new bookings most builders seem to bundling this cost in BSP itself to comply with the rule.
    So my qs are :
    i) For builders who have already charged for parking separately in underconstruction projects, has any builder agreed to refund it yet.
    ii) Is there any rule which says they can or cannot charge for basement level parkings (since they obviously expend costs on creating these).


    They can not charge for parking in anyform - basement or otherwise.
    Please read the provisions under the Haryana Appartment Ownership act.

    https://www.dropbox.com/s/lqglh660vaydk6e/Haryana%20Apartment%20Ownership%20Act.pdf
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  • this is a big nexus between the administration and the builders...........

    Looks that nobody is interested in rights of the common man.......

    This multi trillion dollar mafia.............is the parallel government
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  • Seems to be true Rahul.
    Unless the buyers stand for their right, these builder would continue to fleece
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  • Dear Krishna

    We are yet to receive a reply. I am not too sure what will Mr. Singh write to justify what all is going on. Yet him not reverting is not a show stopper. We feel this was an opportunity for DLF to do course correction on its own but if they don't courts are still available to force anyone to follow the law.

    To be honest I have always found that one has to keep at things for making it happen.

    In 2009, 7 highly motivated individual NTH owners came together, collected over 1000 other NTH owners over the internet all of whom who had a common suffering of no construction happening for over 1 year despite having paid more than 40% of the payment.

    Despite not having met each other ever, all of these fought together to protect their rights. We all came together & did a protest outside DLF office & ensured they make things right.

    Recently on a personal front one of my friend had bought a second hand car from a certified car dealership. He kept the car for 9 months, but suffered every single day of it. The car kept breaking down. The dealership kept repairing the car under the 1 yr warranty but one thing got repaired something else broke down. Everyone asked him to sell his car, book loss & buy a new car but we persisted for 2 months, exchanged multiple written communication & ensured that the dealer accepted his fault & refunded the complete money.

    Today my friend gave his second hand A-Star back & got a new Alto K10. It might be a downgrade but at least he has peace of mind.

    The point is if one is persistent & is willing to fight for his rights nothing is impossible. Otherwise one can keep crying how he has been hard done by.

    Our fight has started, we have a long way to go but we are sure we will get there.

    Regards

    Nitin
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