Karnataka RERA’s view on allotment of Car Parking space.
Author: Editorial Desk
Introduction:
In a move aimed at reducing disputes, the Chairman of K-RERA, in a recent press meet, has indicated that K-RERA is in the process of introducing how parking allotments are documented. Car parking space is a critical aspect of residential living and has often been addressed in conditional language in most real estate sale documentation. In many projects, the agreement talks about the number of car parking spaces without clearly specifying their number, location, dimensions, or type. These practices lead to ambiguity at the time of allotment, leading to disputes which K-RERA is seeking to address.
To eliminate this discord, K-RERA has proposed addressing this issue to bring in higher transparency.
Why clarity on ‘parking slots’ is important?
Regulatory authorities across states have observed that many parking-related complaints have been filed because the allotted parking was perceived as unsafe, difficult to access, or unusable. A recent order passed by MAHARERA in complaint no. CC12400158 also highlights this concern. Once the allotment and sale of car parking space is agreed upon for a consideration, the parking space allotted must be safe, usable, and of proper dimension.
It also noted that receipt of the Occupation Certificate or earlier acceptance of ‘car parking spaces ’ do not automatically absolve the promoter where defects become apparent only upon use.
What this means for promoters?
For promoters, this means that the planning has to be better and the allocation of car parking spaces has to be done internally for each apartment before the sales commence. Karnataka RERA is likely to issue guidelines to have clear and transparent disclosures. Which means that any parking space sold along with an apartment unit must and should clearly document the number, size/dimension, location, and the type (open/covered) of parking space. Hence, promoters need to present a clear layout of parking spaces and mention the above parameters clearly in all documentation, including agreement of sale and allotment letters. This helps the promoters to deal with limited regulatory exposure and minimal disruption.
Benefits beyond compliance
Clear parking disclosures are not only about regulatory compliance but they also enhance buyer confidence, reduce repeated clarifications at the time of possession, and strengthen the credibility of the sale transaction.
In a recent case filed, an allottee / buyer appealed to the K-RERA authority based on a discrepancy in the allotted parking spot versus what was marketed and documented in the Sale Deed – and the RERA authority directed the case in favour of the buyer / applicant against the builder. If you want to know more, read all about it here.
Hence promoters / builders need to be extremely clear of what is being committed and delivered before marketing or making a sale agreement.
Conclusion:
By mandating precise parking disclosures, once the guidelines are issued, K-RERA will reinforce the core RERA principle that what is promised must be clearly defined and delivered.
Note: The above is still in the proposal stage and yet to be implemented.
Disclaimer:
The information contained in this article is provided for general informational purposes only and does not constitute legal advice. Readers should not act or refrain from acting on the basis of any content included herein without seeking appropriate legal or professional advice on the specific facts and circumstances at issue.
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