Cplitochondria: Buying Parking Space from a Builder in Co-operative Housing Societies: Legal Guidelines and Considerations
Co-operative housing societies (CHS) are a popular form of housing in many cities, offering shared ownership and communal living. However, one of the most contentious issues is the sale of parking spaces by the builder to individual flat purchasers. Understanding the legality of such transactions is crucial for both builders and potential purchasers.
Legal Framework and Considerations
When it comes to purchasing a parking space from a builder in a cooperative housing society, several factors need to be considered to ensure the transaction is legally binding and compliant with local regulations. Here are the key points:
Society Bylaws
The society's bylaws are the first and foremost document that must be reviewed. Most co-operative societies have detailed guidelines regarding the allocation, ownership, and transferability of parking spaces. Be sure to check if the society's bylaws permit the sale of parking spaces and the process for transferring them.
Builders Agreement
Builders often designate specific parking spaces as part of the property development. If a builder has reserved parking spots, they may sell them separately. The purchase agreement should clearly outline ownership rights and responsibilities to avoid future disputes.
Registration and Documentation
For the transaction to be legally valid, it must be documented and registered with the appropriate authorities. This includes updating the society's records to reflect the new ownership of the parking space. Proper registration helps prevent any legal issues down the line.
Common Areas
In many cooperative societies, parking spaces may be classified as common areas. In such cases, individual ownership of parking spaces might not be permissible, and the spaces could be shared among residents. It's important to understand how the society manages these common areas.
Legal Advice
Consulting a legal expert or a real estate lawyer is highly advisable. They can provide guidance on local laws and regulations, ensuring that the transaction complies with all legal requirements. A professional can also help identify any potential risks and provide advice on how to mitigate them.
Controversies and Legal Rulings
Several legal rulings and provisions have influenced the sale of parking spaces in cooperative housing societies. Here are some key points:
FSI for Parking Space Provision
When an area is reserved for providing parking spaces based on the Floor Space Index (FSI), the builder has the right to sell these spaces to flat purchasers. However, if the parking spaces are designated as common areas, they must be allotted to society members as per the Building Laws.
Lack of Legal Standing for Parking Spot Sale
The law stipulates that once a building is converted into a housing society, the entire premises, including common areas, become the property of the society. This means that selling parking spaces separately becomes illegal and null and void. According to the Bombay High Court and Supreme Court decisions, a builder cannot sell parking spaces outside the FSI consumed area.
Parking Space Allocation and Charges
The managing committee is responsible for allocating parking spaces. They can devise methods such as first-come, first-served or other suitable methods. The charges for parking spaces are governed by Section 84 of the Maharashtra Owning Flats Act (MOFA). Members who receive stilt or parking space allocations must pay monthly charges, whether they use the space or not.
Ownership and Rights
The ownership structure of parking spaces in cooperative housing societies is complex. Typically, the apartment complex or cooperative society owns the parking spaces. Members may have rights to use these spaces, but these can be subject to the discretion of the managing committee. Non-residents or tenants are usually not eligible for regular member rights and cannot claim parking space allocations unless approved by the managing committee.
Conclusion
In summary, while the sale of parking spaces from a builder in a cooperative housing society can be legal, it is crucial to follow the proper legal channels and verify the society's rules. Consulting a legal expert and ensuring compliance with local regulations can help avoid disputes and ensure a smooth transaction.