Developers cannot sell stilt, open parking areas

These spaces form part of flats; any sale contract for such plots by promoters is not binding on the housing society, says the Supreme Court

DNA

Developers cannot sell open spaces and stilt areas in their buildings as these are meant for common use and form part of the flats, the Supreme Court ruled on Wednesday. The ruling could bring relief to lakhs of flat-owners in different housing societies in Mumbai engaged in a tug of war with the builders over sale of such space as parking lots.

The court made it clear that the developers, or promoters, do not have the right to sell any portion of such building which is not a 'flat' and the entire land and building has to be transferred (conveyed) to the housing society or an organisation.

The only right with the promoter is to sell unsold flats, said a bench of justices RM Lodha and AK Patnaik. It was hearing a batch of appeals filed by Maharashtra-based realty promoters challenging a Bombay high court ruling of April 25, 2008.

The high court (HC) had held that parking space enclosed or unenclosed, covered or open, cannot be a 'building' thus can't be sold independently of the flats. The apex court bench also upheld the HC's ruling that said it is a compulsory requirement (for the builders) to provide for parking spaces under the Development Control Regulation (DCR). Promoters are under obligation to follow DCR, it had said.

The agreement signed under Maharashtra Ownership of Flats (regulation of the promotion of construction, sale, management and transfer) Act, 1963 (MOFA), between the developer and the flat purchasers must be in conformity with the model form of agreement prescribed by the state government. The bench said the model agreement does not state that the flat purchasers separately purchase stilt parking spaces.

The rights accruing to flat purchasers after signing an agreement under MOFA "cannot be diluted by any contract or an undertaking to the contrary", it said. The undertakings contrary to DCR will not be binding either on the flat purchasers or the society.

As soon as the corporation concerned issues the occupation certificate and the society is registered, the building as well as the stilt parking spaces, open spaces and all common amenities become the property of the society. They cannot be put on sale by the developer. DNA

Related Stories:

1) SATURDAY, MARCH 7, 2009

Parking space: Pune property buyers have finally started asking for what should have rightly come free!

Parking can not be sold:

2) FRIDAY, JUNE 22, 2007

Realty Sales on Carpet Area Basis

Feel free to call me:

I enjoy talking, sharing my views and giving advice about buying property in Pune real estate market (so, i do not charge anything for the first 3 minutes!) Call +919860044110

If you like to chat, join me, RaviKarandeekarsBlogs on Google Talk.

Yes, my email id is RaviKarandeekarsBlogs@gmail.com Feel free to write. I reply as soon as i can.

Join me on Google Buzz at
http://www.google.com/profiles/ravi.karandeekar

Subscribe for Free!

To receive free emails or free RSS feeds, please, subscribe to Ravi Karandeekar's Pune Real Estate Market News Blog

For my blogs on real estate projects near Hinjewadi, real estate investment, advertising and other related topics, please, visit and join my Ravi Karandeekar's Pune Real Estate Blog Group