If you are stuck in such a situation, here is what to do.

Ms. Anjali owns an apartment in a cooperative housing society in the city of Suryanagar, which includes an allotted covered parking spot. She intends to rent out this parking space to Mr. Verma, another resident of the same society. Before finalizing the arrangement, she is seeking clarity on the legal framework surrounding such a rental, particularly concerning the protection of her ownership rights and the process for reclaiming the space if the tenant refuses to vacate. She is also uncertain about a fair rental price for a covered spot in her society and wonders if ₹3,500 per month is a reasonable amount.

Advice in such cases

Renting out an allotted parking space within a housing society is common but requires careful handling to avoid future disputes. The primary governing document for such arrangements is the society’s own set of bye-laws.

• Check Society Bye-Laws: Before anything else, thoroughly review the bye-laws of your cooperative housing society. Many societies have specific rules about whether a member can rent their parking spot, and often, they restrict such rentals to other members of the same society only. Some may require you to inform the managing committee and pay a nominal administrative fee.
• Draft a Clear Agreement: Do not rely on a verbal understanding. It is crucial to have a written ‘Leave and License Agreement’ for the parking spot. This agreement is different from a rent agreement for a house and establishes that you are only granting a license to use the space for a specific period, not creating a tenancy.
• Specify All Terms: The agreement should clearly state the names of the parties, the exact location of the parking spot, the license duration (e.g., 11 months), the monthly fee, the due date for payment, and the consequences of a default. Crucially, it must include a termination clause that outlines the notice period required by either party to end the agreement and a clause stating that the license is automatically revoked upon expiry.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Applicable Sections of Law

The legalities of renting a parking spot are primarily governed by contract law and the specific regulations of the housing society.

• The Indian Contract Act, 1872: The Leave and License Agreement you create is a contract and is governed by this Act. It must have all the essentials of a valid contract, such as a lawful object, free consent, and consideration (the monthly fee).
• State Co-operative Societies Act and Rules: The functioning of the housing society, including the allocation and use of common areas and parking, is governed by the specific Co-operative Societies Act of the state it is in. The society’s bye-laws, which are framed under this Act, are legally binding on all members.
• Real Estate (Regulation and Development) Act, 2016 (RERA): RERA defines parking spaces (both covered and open) and their allotment. The allotment letter or sale deed from the builder should confirm your ownership or exclusive right to use the parking spot.

If you are the complainant

If you are the owner (licensor) and the person using the parking spot (licensee) refuses to vacate after the agreement has ended or been terminated, you are the complainant.

• Review the Agreement: Your first point of reference is the Leave and License Agreement. Check the termination clause and the expiry date.
• Send a Formal Notice: If the licensee fails to vacate, your lawyer should send a formal legal notice, clearly stating that the license has been terminated or has expired and demanding that they cease using the spot and hand over peaceful possession.
• Involve the Managing Committee: Approach the society’s managing committee with a formal complaint. Since the dispute involves two members, the committee can mediate or take action based on the society’s bye-laws, such as deactivating the licensee’s access cards for the parking area.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.
• Legal Action: If the issue is still not resolved, you may need to file a suit in a civil court for eviction and recovery of possession. Since this is a license and not a tenancy, the licensee has very limited rights and cannot claim protection under rent control laws.

If you are the victim

If you are the licensee (tenant) and believe the owner is trying to evict you unfairly, contrary to the terms of the agreement.

• Check the Agreement: Your rights are defined by the Leave and License Agreement. Review the terms regarding the duration and the notice period for termination. The owner must adhere to these terms.
• Communicate in Writing: Respond to any notices you receive in writing. Clearly state your position based on the terms of the agreement.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

How the police behave in such cases

Disputes over the rental of a parking spot are civil in nature. The police generally do not have a role to play in such matters. If you approach the police, they will likely advise you that it is a civil dispute and direct you to resolve it through the society’s managing committee or by approaching a civil court. Police intervention would only be warranted if there is a criminal act involved, such as assault, criminal intimidation, or mischief (damage to property), which could arise from a heated dispute. A complaint of criminal trespass could potentially be filed against a licensee who refuses to vacate after their license has been unequivocally terminated, as their presence on the property would then be unlawful.

FAQs people normally have

Is it legal to rent out my allotted parking spot?
Yes, it is generally legal, but subject to the bye-laws of your specific housing society. You must verify if your society permits it and if there are any conditions, such as renting only to other residents.

How can I ensure the tenant will vacate the spot when needed?
The best way is through a well-drafted Leave and License Agreement. This document establishes that you have only given temporary permission to use the space, not rented it out like a property. It should have a fixed term and a clear termination clause. This prevents the user from claiming tenant rights.

What rights does the person renting the parking spot have?
The person’s rights are very limited and are strictly defined by the agreement. They are a licensee, not a tenant. Their primary right is to use the designated spot for the agreed-upon period as long as they pay the fee. They have no right to stay after the license expires or is terminated as per the agreement.

How do I determine a reasonable rental amount?
This is determined by market forces. The best way to ascertain a reasonable amount is to check with other residents in your society or neighboring societies who might be renting out their spots. You can also inquire with local real estate agents. The amount depends on factors like location, whether the parking is covered or open, and security in the society.

What evidence is required?

To protect your rights and for dispute resolution, the following evidence is crucial:

• Leave and License Agreement: The primary and most important piece of evidence.
• Proof of Ownership/Allotment: Your sale deed or allotment letter from the builder that shows the parking spot is allotted to you.
• Society Bye-Laws: A copy of the society’s bye-laws, especially the clauses related to parking spaces.
• Correspondence: Any written communication, including emails, letters, or legal notices exchanged between the parties.
• Payment Records: Proof of payment of the license fee (bank statements, receipts) to establish the existence of the arrangement.
• Complaint to Society: A copy of any formal complaint filed with the society’s managing committee and their response.

How long will the investigation take?

This is a civil matter, so there is no “investigation” in the criminal sense. The time for dispute resolution can vary significantly. If handled through the society’s managing committee, a resolution might be achieved within a few weeks. However, if the matter goes to a civil court, it can be a lengthy process, potentially taking several months to years, depending on the court’s workload and the complexities of the case. Therefore, having a strong and clear agreement from the outset is the best way to prevent prolonged disputes.

Advocate Sudhir Rao, Supreme Court of India