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Can builder charge for a Open Parking?

Parking spaces have usually been the matter of concern for several buyers and have been a major cause of dispute between the buyer and developer.

Also Read- DELAY IN POSSESSION COMPLAINT TO RERA PUNJAB

Best Consumer Lawyer Chandigarh Panchkula Mohali

In the premises of the complex there are three different types of parking area

  1. Open Parking- These are uncovered parking spots within the apartment complex premises.
  2. Stilt Parking -  These are partially covered parking spot on ground floor of the apartment complex.
  3. Garage Parking-  Fully covered complete parking structure

According to the rules of RERA, a developer can sell a covered parking and garage parking but cannot charge for open parking area as it includes under the definition of common area.

 

Also Read- REFUND AND COMPENSATION UNDER RERA PANCHKULA AND PUNJAB

Buyer cannot be charged extra for a open parking.

As per the provision of RERA, builders have no right to charge any amount for sale or use of parking space. The cost of construction, i.e. the sq ft rate includes apartment as well as the cost of common areas.

According to section 2(n) of Real Estate and Regulation and development Act ,2016

Common Area Includes-

  • Entire land of the Real Estate project
  • The staircases ,lifts ,lift lobbies ,fire escapes ,common entrances and exits of the buildings
  • The common basements, parking’s ,play area, terraces, open parking area and common storage spaces
  • The premises for the lodging for the person employed for the management of the property including the accommodation for watch and ward staffs or for lodging of community services personnel .
  • Installation of central services such as electricity, gas ,water,   sanitation, air conditioning incinerating, system of water conservation and renewable energy .
  • The water tanks, sumps, motors, fans, compressors, ducts and all the apparatus connected with the installation of the common use.
  • The community and commercial facilities as provided in the real estate project
  • All other projects of the necessary or convenient for its maintence ,safety etc

The common area also includes the community and commercial facilities.

 

Also Read- LEGAL NOTICE BEFORE RERA CASE FOR ANY DEFICIENCY

Therefore,  According to RERA, all community and commercial facilities are part of the common area which developers cannot sell separately. However, many states, while framing their own rules, have deviated from the model act on various issues, including common area.

In Nahalchand Laloochand P.Ltd. vs Panchali Co-operative Housing Society Ltd. – JT 2010 (9) SC 414: 2010 AIR SCW 5549

Also Read- REAL ESTATE REGULATORY AUTHORITY SALIENT FEATURES

The Supreme Court has held that parking spaces cannot be sold by the builder and the computation of the price of the apartment or plot includes recovery of the price of land, construction of  the common areas, internal development charges, external development charges, taxes, cost of providing electric wiring, fire detection and fire fighting equipment in the common areas etc and includes cost for providing all other facilities.

This post is written by Nidhi Sharma of Punjabi University (Patiala). Dial 99888-17966 for more info on the subject.

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