Can Builders Sell Parking Spaces? RERA Rules Explained

Parking Spaces

Parking rights in housing societies have been a frequent source of disputes between developers and homebuyers. The confusion mainly revolves around whether stilt parking, podium parking, and open parking can be sold. Let’s break down the legal framework in simple terms.

Understanding Types of Parking Spaces

Before examining legality, it is important to distinguish between different types of parking:

  • Open Parking
    • Open-to-sky areas within the society premises
    • No structural covering
  • Stilt Parking
    • Parking area on the ground floor supported by pillars
    • Covered but not enclosed
  • Podium Parking
    • Parking space constructed on an elevated slab
    • May be covered or semi-covered
  • Garage
    • Fully enclosed space with roof and walls on three sides

Position Before RERA

Prior to the enactment of
Real Estate (Regulation and Development) Act, 2016:

  • Developers were not legally permitted to sell open parking spaces
  • Courts held that:
    • Open parking forms part of common areas
  • Despite this:
    • Builders often issued allotment letters for parking
    • Such allotments had limited legal validity

Legal Position After RERA

RERA brought clarity to the issue:

1. Open Parking Spaces

  • Defined as part of common areas under Section 2(n)
  • Cannot be sold separately
  • Belong collectively to the society or association of allottees

2. Garage

  • Defined under Section 2(y) as:
    • A covered, enclosed space with roof and walls
  • Can be sold independently by the developer

3. Covered Parking Spaces

As per
Maharashtra RERA Rules, 2017:

  • Covered parking includes:
    • Basement parking
    • Stilt parking
    • Podium parking
    • Mechanised parking
  • These are:
    • Recognised as saleable units, if approved in plans
    • Must be clearly mentioned in the Agreement for Sale

Important Clarification: Stilt & Podium Parking

There is a common misconception that:

“Stilt and podium parking are open spaces and cannot be sold”

This is not entirely correct:

  • Stilt and podium parking are NOT open parking
  • They fall under covered parking category
  • Hence, developers can sell them, subject to:
    • Approval in sanctioned plans
    • Proper disclosure in agreement

MahaRERA Guidelines on Parking

Maharashtra Real Estate Regulatory Authority has issued important clarifications:

  • Open parking spaces are:
    • Provided free of FSI (Floor Space Index)
    • Must be clearly marked and numbered
  • For sale of parking:
    • Type (garage/covered)
    • Number
    • Size
      must be explicitly stated in the agreement

Rights of the Society

Once the society is formed:

  • Open parking spaces vest with the society
  • Society has the authority to:
    • Allot parking to members
    • Frame parking policies

Even if a builder has “sold” open parking informally, such claims may not hold strong legal ground.

Common Issues Faced by Buyers

  • Parking sold through separate letters instead of agreements
  • Multiple buyers claiming the same parking slot
  • Disputes over allocation vs ownership

These issues can often be resolved by referring to:

  • Registered agreements
  • Approved building plans
  • Society bye-laws

Conclusion

The statement that “all open spaces including stilt and podium parking belong to the society and cannot be sold” is partially incorrect.

  • Open parking spaces: Cannot be sold and belong to the society
  • Stilt and podium parking: Treated as covered parking and can be sold if properly approved and disclosed
  • Garages: Fully saleable units

Understanding this distinction is crucial for both buyers and societies to avoid disputes and ensure compliance with the law.

Society MITR

Spread the love

Leave a Reply

Your email address will not be published. Required fields are marked *