By:
Bryan Lui (Co-Managing Partner) [bryanlui@luibhullar.com]
Harneshpal Karamjit Singh (Co-Managing Partner) [harnesh@luibhullar.com]
Sophia Au (Associate) [sophia@luibhullar.com]
Insights from a Strata Lawyer on The Legalities of Car Park Allocations in Strata Properties
Car park allocations in strata properties frequently lead to disputes between residents, developers, and management bodies. With the rise of urban living, the need for parking spaces in high-density developments has increased, making these allocations a critical concern in strata-titled properties. It is crucial to understand the legal framework governing car park allocations to ensure effective management and avoiding conflicts.
Understanding Strata Properties and Car Park Allocations In Strata Properties
Strata properties are multi-unit developments where individual owners hold title to their specific units and share ownership to common areas, such as corridors, swimming pools, gyms, and common gardens. The car park spaces within a strata properties can be categorized into different types :-
i. Accessory parcels: These parking spaces are legally tied to a specific residential unit. The owner of the unit has exclusive to use the car park, and it cannot be sold or leased independently of the unit.
ii. Common property: These car parks are part of the common property and are owned collectively by all strata owners. The management body usually controls their allocation and use, often on a first-come first-serve or through a leasing arrangement.
Legal Framework Governing Car Park Allocations In Strata Properties
Strata Titles Act 1985 (STA 1985)
The STA 1985 provides the basis for the issuance of strata titles, including those for car parks. When car parks are designated as accessory parcels, they are reflected in the strata title of the associated unit.
Strata Management Act (SMA 2013)
The SMA 2013 governs the management and maintenance of strata properties. It outlines the roles and responsibilities of the Joint Management Body or Management Corporation in managing common property, including car parks.
Sale and Purchase Agreement (SPA)
The SPA between the developer and the purchaser often includes terms related to car park allocations. The SPA may specify whether the car park is an accessory parcel or part of the common property.
Common Legal Issues and Disputes
Car park allocations can lead to a variety of legal issues in strata properties :-
i. Disputes over accessory parcels: It is not uncommon for disagreements to arise when an owner claims a particular car park as an accessory parcel, only for the management body or another owner to dispute this. Such conflicts often stem from unclear terms in the SPA or inconsistencies in the strata plan.
ii. Unauthorized sale or lease of car parks: Problems may occur when an owner attempts to sell or lease a car park that is an accessory parcel without the associated unit or when common property car parks are leased out without the management’s approval.
iii. Misrepresentation by developer: There have been instances where developers have misrepresented the availability or allocation of car parks during sales, leading to legal action from buyers who discover that the promised parking space either doesn’t exist or isn’t allocated as promised in the SPA.
Best Practices for Avoiding Car Park Disputes In Strata Properties
Clear Documentation in the SPA: Ensure that the SPA explicitly defines the status of car parks – whether they are accessory parcels or common property.
Transparent Allocation Process by the Management: The Management should set up clear, fair, and transparent rules for allocating and using common property car parks. Decisions should be aligned with the by-laws.
Review of Strata Plans and Titles – Carefully review the strata plans and titles to ensure car park allocations and other details in the SPA align with the strata plans and titles.
Conclusion
Car park allocations in strata properties can be a complex and often contentious issue. By understanding the legal framework, all parties involved – whether property owners, developers or management bodies, can better manage these allocations. A clear, transparent approach will go a long way in fostering a harmonious living environment within strata communities.
Contact us for a free consultation via WhatsApp (+60143000960) or E-mail (admin2@luibhullar.com) for any queries regarding Strata Management matters.
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