Homebuyer loses parking dispute after neighbour occupies slot: Here's why

Buying a flat with an “existing” parking space does not necessarily mean the parking right comes with it.

A recent Maharashtra Co-operative Appellate Court ruling has underlined that an allotted parking space in a co-operative housing society does not automatically pass to the new owner when a flat is sold.

The judgment is an important reminder for homebuyers that while ownership of a flat can be transferred through a registered sale deed, parking rights in many housing societies are governed separately by society by-laws.

Legal experts say failing to complete the society’s allotment process can leave buyers without any exclusive claim over the parking slot they believed they had purchased.

The case involved a couple who bought a flat in a Mumbai co-operative housing society from the original owner. The previous owner had been allotted a parking space by the society years earlier.

After purchasing the flat, the new owners continued using the same parking slot but did not apply to the housing society for a fresh parking allotment in their own names, as required under the society’s by-laws.

The dispute arose when a neighbour parked a second vehicle in that space and refused to move it. The buyers approached the courts seeking exclusive rights over the parking slot.

However, the appellate court ruled against them. It held that the previous owner’s parking allotment could not automatically transfer to the new buyers. Since they had never obtained a fresh allotment from the society, they could not claim exclusive rights over that particular parking space. The court, however, clarified that they remain free to apply to the society for a parking allotment.

The ruling was based on the model by-laws governing co-operative housing societies in Maharashtra.

Under these by-laws:

• Parking allotment is made by the society’s managing committee.

• Members cannot independently sell or transfer a parking space allotted by the society.

• A new flat owner must apply separately to the society for parking after becoming a member.

The court noted that because the buyers had not followed this procedure, they could not legally insist that the original owner’s allotted parking space belonged to them.

Legal experts say the judgment reinforces an established legal position rather than creating a new rule.

Adhiraj Harish, partner, D.M. Harish & Co. LLP, said allocation of parking spaces in Maharashtra co-operative housing societies is governed by the society’s by-laws.

Where parking is limited, societies can adopt fair methods such as lotteries or rotational allotments, provided these are implemented uniformly. He added that buyers should verify parking allotments with the society before purchasing a flat to avoid future disputes.

Supriya Majumdar, partner, Elarra Law Offices, said the ruling follows earlier Bombay High Court decisions that distinguish ownership of a flat from the right to use a society-allotted parking space. According to her, a seller can only transfer property that they legally own. Since the seller merely enjoys a right to use the allotted parking space, the purchaser must separately apply for membership transfer and fresh parking allocation from the society.

Shashank Agarwal, founder, Legum Solis, said the judgment is a reminder that buyers should not assume ancillary rights automatically accompany ownership of a flat. He advised purchasers to verify society records and obtain necessary approvals regarding parking before completing the transaction.

Siddharth Joshi, advocate, Delhi High Court, said many buyers carefully examine the title of a flat but overlook parking arrangements. According to him, society-allotted parking is generally a user right rather than an ownership right.

Buyers should obtain written confirmation from the society regarding parking availability, allotment status, waiting lists and applicable by-laws before finalising the purchase.

Soayib Qureshi, partner, PSL Advocates & Solicitors, said parking allotments in co-operative housing societies are governed by each society’s applicable by-laws. He noted that the Model Be-Laws require members seeking parking to submit an application to the society. On transfer of a flat, the incoming owner must seek a fresh allotment in accordance with those rules because parking allotments themselves are generally not independently transferable.

Nikita Rathi, advocate, Delhi High Court, cautioned that the Maharashtra ruling should not automatically be applied across India. She explained that co-operative housing societies operate under a specific legal framework where common areas remain under the society’s control. In states governed by apartment ownership laws or in projects where parking allocation is specifically declared under RERA or builder documentation, the legal position may differ.

Experts say buyers should complete a few simple checks before signing the sale agreement:

• Obtain written confirmation from the housing society on whether a parking slot is allotted to the flat and whether it can continue after ownership changes.

• Read the society’s parking policy and by-laws to understand how parking is allotted, whether through seniority, lottery, rotation or another system.

• Submit a fresh application for parking immediately after becoming a society member instead of assuming the previous owner’s allotment continues.

• Carefully examine the sale agreement to understand whether it refers to an enclosed garage or merely mentions use of an open or stilt parking space, which is often treated as a common area.

• Cross-check the seller’s claims with official society records rather than relying only on the sale documents.

• Try resolving disputes through the society’s managing committee before initiating legal proceedings, as many issues can be settled within the co-operative housing framework.

• If parking is currently being used through an informal understanding, get the arrangement formally recorded with the society before disputes arise.

The judgment highlights that purchasing a flat and securing a parking space are not always the same transaction. In many co-operative housing societies, the flat changes hands through a registered sale deed, but parking rights continue to be governed by the society’s own rules.

For buyers, carrying out due diligence on parking can be just as important as verifying the property’s legal title. A simple written confirmation from the housing society before completing the purchase could help prevent lengthy and costly disputes later.