Builder cannot sell parking slot as it forms part of common area for benefit of all members
he can merely allot parking slot
Recently I have taken possession of an additional parking lot in my apartment which is 10 years old from builder. The building was handed over to association in 2015. There was one unsold parking lot, and I approached association to check the feasibility of selling it to me, but association informed that they can only rent it out. So I approached the builder checking for the feasibility of buying it from them. After doing due diligence from their side finally the parking lot was sold to me . The builder has issued an allotment letter mentioning the parking lot number and other details. But association is not accepting the sale as they says the builder has no legal right to sell the parking lot which has been handed over to association. Builder says they have all the legal right to sell the unsold parking lots, and right for maintenance of the building only has been handed over to association. Advice is needed regarding who is right here. Presently I paying rent for the parking lot which I own since i parked my vehicle there.
11 answers received from multiple lawyers
Lawyers are available now to answer your questions.
Builder cannot sell parking slot as it forms part of common area for benefit of all members
he can merely allot parking slot
Hello,
If the said lot is sold under rera then it’s legal and association can’t object. But it should be a closed parking from 3 sides
- As per Supreme Court, Builder has no right to sell parking to apartment-owners, including stilt parking or garages; .the car parking is a part of the society's common area
- Further, if the buyer -seller agreement mentions car parking as a separate item, or the buyer can produce other evidence of having purchased it, he can challenge the developer, and can get refund from the builder legally.
- Further, a builder has no right to sell stilt parking or open parking, both of which are part of common amenities. , and only the housing society's general body could make the allotment of space to flat occupiers.
- After forming the society and registered , it becomes the owner of all the common spaces of the apartment complex including the parking spots, and society can make new rule for allotting the parking to its members.
- Further, the association also has not right to given the parking space on rent
- Hence , if the allotment letter is issued to you by the builder and it is also a part of your sale deed , then you can file a complaint against the association
The law inn this regard is that the builder cannot sell the car parking space whether before handing over the apartment to the association or after that.
The allotment letter given by the builder is invalid in law and cannot be enforced through court of law.
If the builder claims to own the parking space then nothing prevented him from executing a registered sale deed, which he will never do because he do not own the parking space, especially after handing over the apartment to the association.
You can demand refund of the amount paid to him or to execute the registered sale deed in respect of the parking space to which he accepted the money from you
Thanks all for your valuable advise on the issue!. I had a discussion with the builder based on the advise I received from this forum. Now he is asking me to re-register the sale deed by adding the additional parking lot. Is it acceptable under the law? Will this rectification help me to take the ownership of the additional parking slot? If challenged by the association, will re-registering the sale deed will give me the protection.
It is not re-registration.
There's no question arises for re-registration..
He can sell the parking space by executing a fresh sale deed and even a rectification deed.
But after having handed over the common areas to the association, the builder has got no rights to do this.
Now the entire common including the vacant open parking space belongs to association hence it will not recognise any such gimmick the builder may try to play now
Builder can sell covered garage but not stilt or open parking slot
he can execute supplementary deed for sale of covered garage
- Yes, the builder can registered a rectification deed in your favor , and this deed cannot be challenged by the association .
- However, once the possession already given to the association , then the builder cannot enter into such agreement.
- Hence, you or builder should firstly discuss with the association before registering such deed.
Dear Client,
The additional parking lot registration process is the same as the one for the apartment and parking lot you have already bought and registered. When an apartment sale deed is executed and registered, the customary process involves designating one covered or uncovered parking space for a sum of Rs. 1,00,000 for covered parking and Rs. 75,000 for uncovered parking. This amount is added to the consideration amount of the apartment and is subject to stamp duty. The buyer may take a chance and contact the builder for the sale of additional covered or uncovered parking if the developer has any that falls under his share. The only need is to have it separately registered.
Hope this answer proves beneficial to you.
even if the handover by the builder to the association is for collecting maintenance only, still the builder has no right or business to sell the parking lot to you
the society is correct here
once the OC for the building is received and the minimum number of flat buyers required to form a society or an association are there, then the builder under the law is required to convey his right title and interest in the project to the society
just because that has not been done by the builder would not mean that he can have an indefinite hold over the property which legally now belongs to the society
even otherwise the parking spaces come under the common areas over which the builder could not have exercised any sale rights
the common areas including the parking spaces belong to the society
the allotment letter for the parking lot issued by the builder now to you is completely illegal
even doing any rectification deed will not assist you
the builder is out now and he has got nothing to do with the society, its property and its affairs, save and except any unsold flat that remain with the builder
even if there is any covenant in the agreement for sale executed between the builder and the various flat buyers that the builder has exclusive claim over the parking spaces including right to sell them, such a clause is not binding on the flat buyers and in turn on the society and is merely a blanket consent, being in violation of the extant law