Creating a Tailor-Made Template for Car Parking Agreements

What is a Car Parking Agreement?

A car parking agreement is a contract between a lot owner and tenant allowing the tenant to rent out a car parking space. Under this agreement, the tenant pays the lot owner a fee in exchange for the right to use the designated parking space.
Car parking agreements are common in multi-unit residential strata schemes, including apartments and units. The agreement sets out the arrangements for using the car park (including the fees), what will happen if those arrangements are breached, and outlines how the agreement can be ended. For the budget conscious landlord, the agreement can be drafted by a suitably qualified and licensed person, rather than a lawyer.
Having a car parking agreement in place means the obligations of both the landlord and tenant are clear. It is particularly important for the parties to have a formal written record of their agreement. Unlike a lease, there is no statutory requirement to register the car parking agreement or to transfer the car parking rights . The landlord and tenant may need a car parking agreement if:
In the absence of a car parking agreement, the landlord could terminate the tenancy without notice (in writing). The landlord may be able to terminate the agreement for breach of its terms, if the tenant isn’t clearly complying with the terms of the agreement. This could also include having noticed congestion or inconvenience caused by the tenant parking near entry and exit points. A car parking agreement will provide a clear basis for validly terminating the tenant’s right to the parking space and ensuring that they understand their obligations to comply. While the landlord may be able to terminate the agreement for breach, the landlord may have to serve notice in accordance with the Act in certain situations (depending on the terms of the agreement). Any amount of notice is sufficient unless a longer period is specified in the lease.

Essential Components of a Parking Agreement

A comprehensive parking agreement template should include several key components to ensure all parties fully understand their rights and obligations. A few of the most important issues to cover include:
Terms of Use
The terms of use clearly outline the intended use of the property as a parking lot. It can also be used to outline specific uses that are not allowed, such as parking in a manner that block other vehicles or accessing a parking lot over weekends.
Duration
It is important to set the duration of parking in a clear manner. This can include starting and ending dates so all parties are on the same page. It also should be clear if renewals are an option and how they are to be paid for.
Pricing
If there is a price for renting a parking space, then it should be clear in the agreement breaking down the payment terms, cost of the transaction and any penalties for failing to pay.
Damage
The agreement should clearly address any damages. If there is going to be a damage deposit that is required, it is important that the agreement includes details for how the deposit can be used, how funds will be returned and under what circumstances it would not be returned.
Liability
There should also be a section addressing liability, if applicable. It should clearly address who is responsible for any damages to any vehicles during the duration and who would be liable for any damage to the parking lot itself.

Different Types of Parking Agreements

Various Types of Car Parking Agreements
As such, a situation can arise where a person is paid to sub-lease the use or availability of a parking space they rent or own to a third party who intends to use the premises. All types of of car parking agreements may provide that the landlord or tenant is responsible for such payments and contributions.
Depending on the circumstances, such agreements can take on a variety of forms, including, for example, commercial parking leases with a duration of greater than five years, that are covered by the Act; long-term residential parking leases of greater than 30 years, that are covered by the Act; long-term commercial parking leases, that may or may not be covered by the Act; short-term residential parking agreements of less than 30 years, that are covered by the Act; short-term commercial parking agreements of less than five years, that are not covered by the Act.
In addition, any parking agreement granting periodic unwritten tenancies, and any parking agreement in respect of non-land tenancies under the Act (also known as "occupation agreements") are not covered by the Act.

Legal Aspects

Regulatory policies covering the use of available land space may restrict the use of this space for the benefit of the owner’s other businesses, such as a motel or apartment. For example, zoning regulations may require the land space to be kept vacant for storm-water management. In these circumstances, the car parking agreement will not be valid.
Zoning laws and tenancy rights can also impact on how and when the agreement is terminated, and they may impose additional requirements on the owner if they intend to terminate the agreement. Any termination notice must comply with those requirements to be effective.
Relationships with the neighbours may also be important considerations if the relationship extends to an agreement between the owners regarding the use of land space for car parking. There may be agreements, covenants or stipulations that require a car parking space to be used a particular way, that essentially run with the land and bind successors in title. The enforcement of agreements, covenants or stipulations of this kind may be subject to limitation periods and other procedural requirements.
For these reasons, it is important to check the applicable statutory regime, zoning laws, agreements, covenants and stipulations before the car parking agreement is drafted.

Tailoring Your Own Parking Agreement Template

When it comes to modifying an existing template or draft a parking agreement from scratch, ensure you understand the legal requirements for your parking agreement. Templates may include pay parking agreements, free parking agreements to be used with condominiums, and various other types of agreements with your client or third-party property managers. When drafting a new template, it is important that the agreement accurately reflects the intentions of the parties and is drafted in a manner that meets the requirements under the law and by applicable restrictions.
For example, when it comes to indemnification and liability clauses, when drafting an indemnification clause for the landlord , it is important that the indemnity is limited by the tenant’s liability under the agreement. This may be counterintuitive, but it protects the landlord in the event that the landlord is held liable to a third-party on the tenant’s behalf. By limiting the scope of the tenant’s liability, the tenant is not held fully responsible for injuries that occurred outside of its negligence or fault.
If you are drafting the parking agreement template for an existing client’s properties, it is a good idea to inform your client when they require additional terms, and how we can modify the template on their behalf. Legal document templates for parking agreements should always be discussed with the intent on how to modify it to specifically fit into the client’s business needs and property requirements.

Issues to Avoid

Common mistakes to avoid when using or drafting a car parking agreement template include the following:
These templates and contracts are usually drafted by car parks and motor vehicle businesses to try to absolve their businesses of any liability – they do not work in all situations and can even be unenforceable if they are unfair or subject to the Australian Consumer Law. Solicitors are often guilty of omitting "reasonable notices" and "proper notices" clauses from contracts despite these provisions being relied upon to show the parties’ intention to incorporate the full terms of the contract into the notice (or copy of the template).
It is essential that you ensure you understand what activities are caught by the parking agreement – whether your activity is to ‘park’ the vehicle or use it in a residential context. For example, if you are selling the vehicle on CarSales and the agreement governs the parking at your residence, then you are probably going to be using the vehicle to ‘park’ it, but not for a prolonged period, in which case the agreement may indeed be appropriate. However, the activity of parking on someone else space, you are probably not going to be using the vehicle for very long and the activity should not really be called ‘parking’ at all. The activity of using space is probably more appropriate.
The problem with templates is that they are drafted on the basis of the parties being experienced in their dealings with each other. It does not surprise me that we are given a template for a car park agreement for the family car at the family residence, which goes to hand the car over to the father’s new partner. Surely, anyone could have one or both of these types of partners:
On this basis, be sure to thoroughly check the terms of the car park parking in relation to the type of activity you are looking to engage in using the vehicle and whether the activity is appropriate for that specific car park.

Completing and Signing the Parking Agreement

Having selected a template, it will be necessary to review its content against the agreement that you wish to create to ensure that it includes all necessary and relevant provisions. Many commercial spaces come with allocated parking spaces, which tenants are permitted to use on a permanent basis. If you have been granted one of these spaces, it is usually not necessary to request a formal agreement. Where however you are leasing a parking space in an under-utilised salon or empty store premises then you may find that most landlords will strongly stipulate that you have a formal agreement in place.
You may find that the other party has some negotiation points to put towards you. Make sure that you are able to agree or counter these points before you start drafting the document. Once you have agreed your terms then you can draft the document using the template as a guide. You can complete the rest of the document yourself using a basic word processing programme. The information that you include at this stage will determine where you include certain provisions within your document. While some of these are common, for example parties, dates, and signature, some are far less common such as insurance obligations, termination period for the agreement, or when it comes into effect. If your template includes these sections but you have elected not to include them within the parking space agreement, make sure that you include strike throughs to prevent the other party from erroneously including these provisions into the final document. Once you have completed your draft, send it to the other party for review along with any other paperwork that you would like to sign there and then. An example of this could be the trading hours for the premises. Once you have agreed your terms and conditions, both parties then need to sign and date the document in accordance with the rules for a regular contract.

Templates for Parking Agreements

Large organizations often have significant legal departments or access to a licensed attorney who helps create various documents, including a car parking agreement template. For the rest of the public, many templates are now available for free or for a small fee.
State bar associations may have links to templates or have webpages designated for other useful resources. Just be sure to check the date and any reviews available for the template. Other templates can be found through online searches or organizations such as Rocket Lawyer, Legal Templates and Law Depot. Similar California, Pennsylvania and New Jersey directories may exist .
Some people prefer to visit their local public law library to find a suitable template. Personnel at these libraries can usually help direct you to a resource but have limited time for more detailed questions if you wish to customize it to meet your needs.
Another option to consider is hiring an expert attorney experienced with agreements to create your agreement from scratch. Be sure to clearly explain that you need a customized agreement and not just a generic template. Always read over the completed document carefully before signing to avoid any omissions or errors.