Recently Supreme court had given a judgement regading a Mumbai case, where it says, Builder can't sell parking space separately.
http://www.accommodationtimes.com/legal ... eme-court/
http://www.accommodationtimes.com/legal ... ent-by-sc/
Is this applicable for karnataka? If so, Should the builders charge extra money, for a parking slot? Can the builder sell the left over parking slots?
Any thoughts please....
Is selling extra parking legal?
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srinu_muktha
- Posts: 4
- Joined: September 8th, 2010, 4:13 pm
Re: Is selling extra parking legal?
Srinu
you need to carefully observe the Supreme court order. It says, Developer can sell the parking area which is part of the building. Not any area outside the constructed area. I.e. many developers sell the open areas around the structure in the name of Open parking at a lesser Price. That is strictly not allowed. When a supreme court gives such judgements, its applicable for the entire country. Not limited to the state of Maharashtra.
you need to carefully observe the Supreme court order. It says, Developer can sell the parking area which is part of the building. Not any area outside the constructed area. I.e. many developers sell the open areas around the structure in the name of Open parking at a lesser Price. That is strictly not allowed. When a supreme court gives such judgements, its applicable for the entire country. Not limited to the state of Maharashtra.
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srinu_muktha
- Posts: 4
- Joined: September 8th, 2010, 4:13 pm
Re: Is selling extra parking legal?
Hi msn1270,
I have read the full order again. It NEVER said, "Developer can sell parking area with in the building".
What they say is, Builders should charge all the flat owners proportionately, all the common area charges (including parking), so he can't sell an extra parking at an extra money. It is for the society to decide how to share/allocate the parking space for the flat owners.
In my understanding, For eg. If all the flats are of equal size, then society can give one parking each and rent the left over parkings and use that money for maintainence. But the problem comes, when some are 2BHK, some 2.5BHK and some 3 BHK. People with more built-up area wont agree for one parking each for everyone. So this may leads to fights with in.
so this is going to be a very complex issue. Need to see what happens in bangalore.
I have read the full order again. It NEVER said, "Developer can sell parking area with in the building".
What they say is, Builders should charge all the flat owners proportionately, all the common area charges (including parking), so he can't sell an extra parking at an extra money. It is for the society to decide how to share/allocate the parking space for the flat owners.
In my understanding, For eg. If all the flats are of equal size, then society can give one parking each and rent the left over parkings and use that money for maintainence. But the problem comes, when some are 2BHK, some 2.5BHK and some 3 BHK. People with more built-up area wont agree for one parking each for everyone. So this may leads to fights with in.
so this is going to be a very complex issue. Need to see what happens in bangalore.
Re: Is selling extra parking legal?
Hi srinu
my understanding was based on an another article which had highlighted more on the open space. a copy of which is attached below.
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MUMBAI: In a major relief to thousands of flat owners, the Bombay High Court has ruled that builders or developers cannot sell open space in housing societies for parking. Disposing a petition filed by a housing society in Borivali against its developer, the HC has categorically made it clear that once the occupation certificate is issued by the relevant authorities and the society is registered, “the building as well as the stilt parking spaces, open spaces and all common amenities
become the property of the societyâ€. The builder/developer ceases to have any title on the same, the court stated. Justice BH Marlapalle, in a decision delivered on April 25, has even rejected the builder’s claim that flat owners in this case had given an undertaking giving up their claim on the open space.
The HC order is significant given the number of similar complaints various consumer bodies and courts receive regularly. “It has become a practice now where builders charge flat owners for space which otherwise should have come to them as their right,†observed Mumbai Flat-Owners Association president Mahabaleshwar Morje, that has been fighting for flat-owners’ right. In this case, the said builder at Borivali had locked open space within the stilt with collapsible gates and wanted to sell it to flat-owners in the building for parking. He had kept this open space under lock and key and prevented residents from using it. “This was totally illegal,†the HC stated. The HC quoting Development Control Rules dismissed this claim and made it clear that the stilt area, even if it is enclosed, continues to be an open space and since the builder is not paying any separate property tax over it, his claim of it being a garage are not acceptable. “It is not an additional premises / area that he is authorised to sell either to any flat purchaser or to any outsider. It is a part and parcel of the society building and it cannot be a separate premises available for sale,†the court noted.
my understanding was based on an another article which had highlighted more on the open space. a copy of which is attached below.
=========================================================================================================
MUMBAI: In a major relief to thousands of flat owners, the Bombay High Court has ruled that builders or developers cannot sell open space in housing societies for parking. Disposing a petition filed by a housing society in Borivali against its developer, the HC has categorically made it clear that once the occupation certificate is issued by the relevant authorities and the society is registered, “the building as well as the stilt parking spaces, open spaces and all common amenities
become the property of the societyâ€. The builder/developer ceases to have any title on the same, the court stated. Justice BH Marlapalle, in a decision delivered on April 25, has even rejected the builder’s claim that flat owners in this case had given an undertaking giving up their claim on the open space.
The HC order is significant given the number of similar complaints various consumer bodies and courts receive regularly. “It has become a practice now where builders charge flat owners for space which otherwise should have come to them as their right,†observed Mumbai Flat-Owners Association president Mahabaleshwar Morje, that has been fighting for flat-owners’ right. In this case, the said builder at Borivali had locked open space within the stilt with collapsible gates and wanted to sell it to flat-owners in the building for parking. He had kept this open space under lock and key and prevented residents from using it. “This was totally illegal,†the HC stated. The HC quoting Development Control Rules dismissed this claim and made it clear that the stilt area, even if it is enclosed, continues to be an open space and since the builder is not paying any separate property tax over it, his claim of it being a garage are not acceptable. “It is not an additional premises / area that he is authorised to sell either to any flat purchaser or to any outsider. It is a part and parcel of the society building and it cannot be a separate premises available for sale,†the court noted.
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srinu_muktha
- Posts: 4
- Joined: September 8th, 2010, 4:13 pm
Re: Is selling extra parking legal?
Some more links on the same topic.
http://www.commonfloor.com/stories/park ... ent-page-1
http://timesofindia.indiatimes.com/indi ... 111379.cms
http://blog.propertynice.com/builders-h ... eme-court/
http://www.indianrealestateforum.com/no ... 13227.html
http://timesofindia.indiatimes.com/city ... 549697.cms
http://www.commonfloor.com/stories/park ... ent-page-1
http://timesofindia.indiatimes.com/indi ... 111379.cms
http://blog.propertynice.com/builders-h ... eme-court/
http://www.indianrealestateforum.com/no ... 13227.html
http://timesofindia.indiatimes.com/city ... 549697.cms