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    Home » Builders Can’t Charge Separately for Parking – Court’s Decision Explained
    Property

    Builders Can’t Charge Separately for Parking – Court’s Decision Explained

    Neeraj BhakerBy Neeraj BhakerOctober 21, 2024No Comments3 Mins Read
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    Builders Can’t Charge Separately for Parking – Court’s Decision Explained
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    When buying a flat, many assume that parking space is part of the deal. However, in some cases, builders try to charge extra for parking, creating confusion and disputes. A recent court ruling has now made it clear that builders cannot sell parking spaces separately. Here’s what happened and what buyers should know to avoid being overcharged.

    Retired Army Major’s Legal Fight Over Parking Fees

    An 81-year-old retired army major bought a 3 BHK flat in the Hill View Garden Housing Complex, Rajasthan. When purchasing the flat, the builder charged him an extra Rs 50,000 for parking space. However, according to real estate laws, parking must be included in the flat’s price and not sold as a separate unit.

    Feeling cheated, the major approached the State Consumer Commission and filed a complaint against the developer. After seven years of legal battle, the case finally reached the National Consumer Disputes Redressal Commission (NCDRC).

    What the Court Decided

    The NCDRC reviewed the builder-buyer agreement (BBA) and ruled that charging separately for parking violated the contract and real estate laws. As per Clause 1.2 of the agreement, the sale price must include the right to use open or covered parking. Therefore, the Rs 50,000 charge was considered illegal.

    The court directed the builder to:

    • Refund the Rs 50,000 charged for parking.
    • Pay 6% annual interest on the amount from the date of payment until it is refunded.

    This ruling emphasizes that parking spaces are part of the common facilities provided to residents and cannot be sold independently.

    Legal Arguments Presented by the Major’s Lawyers

    The major’s lawyers highlighted that parking spaces are considered part of common amenities in housing societies. They argued that selling them separately goes against both the law and the builder-buyer agreement. This unfair practice was deemed a clear violation of clause 3 of the agreement, which states that all essential amenities should be covered under the flat’s sale price.

    See also  Why Small Cities are the Next Big Real Estate Hotspots in India

    Why Buyers Should Carefully Read Builder-Buyer Agreements

    If you’re planning to buy a flat, it’s essential to carefully review the BBA. Many builders may try to add hidden costs, including parking fees. The agreement should specify whether the flat’s price includes parking space. This can prevent disputes later on and ensure you are not unfairly charged.

    Supreme Court’s Stand on Parking Fees

    According to Delhi High Court lawyer Nishant Dutta, the Supreme Court has also ruled that parking spaces are part of essential facilities in housing societies and cannot be sold separately. This reinforces the NCDRC’s decision, offering legal clarity on the matter.

    Key Takeaway for Home Buyers

    This case highlights the importance of being informed about your rights when buying property. Parking fees should be included in the flat’s price, and builders cannot charge extra for it. Make sure to review the builder-buyer agreement thoroughly and consult legal experts if needed to avoid hidden charges.

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    Neeraj Bhaker
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    Neeraj Bhaker, an MBA graduate with over 10 years of experience in the real estate and property sector, brings a wealth of knowledge to his writing. His insights cover the latest trends and updates in the industry, offering valuable perspectives to both investors and homeowners. Neeraj's expertise makes him a trusted voice in the real estate space.

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