The Home Buying Process: Deeded Parking vs. Assigned Parking: What’s the Difference?

Depending on where you are looking in the Metro DC area, a parking spot is worth its weight in gold or more specifically $40 to $50K. When it comes to parking there is some confusion about the differences when it comes to ownership. 

In a condominium, the difference between deeded parking and assigned parking is significant. A deeded parking space is primarily under the control of the unit owner, while an assigned parking space is under control of the condo or homeowners’ association, the latter of which can in extreme cases be changed or even eliminated without the unit owner’s consent.  The owner of the space has the right to use, sell, or rent it out and I know a number of people in the DC who do. Legally, a deeded parking space is generally appurtenant to the unit, which defines it as being attached to the unit, but that does not mean it is physically attached or has to be. A deeded parking space is highly desirable in the event of a home sale since ownership is transferable. 

Naturally, one of the important things to consider when it comes to condominium ownership is that the unit owner is subject to the whims or wishes of the other unit owners as far as any potential changes to the bi-laws but the process to change a deeded parking space is complicated and there better be a very good reason to do so. Keep in mind that if there is one, the majority of unit owners would have to come together and begin the process of creating an amendment to the original condominium declaration which would then have to be recorded with the county. 

OWNERSHIP

To clarify, the owner of a unit with a deeded parking space generally does not own the actual land on which the parking space exists, rather the owner possesses an exclusive right to use it.  A deeded parking space is classified as a ‘limited common element’ as opposed to a ‘general common element’, the latter of which is defined by an element that is shared equally among the owners as a group, such as a gym or a swimming pool. In summary, while a deeded parking space is a common element, it is limited to use by one owner. 

Some deeded parking spaces are owned in ‘fee simple’ by the unit owner, meaning that the owner bears ‘title’ which affords absolute and complete ownership. In this instance, the owner of the parking space will be required to pay a separate tax, that is in addition to any taxes incurred an HOA or Condominium Association. Meanwhile, they can use it for their own vehicles, rent it out to others, or even sell it separately from the property. 

An assigned parking space is one that is allocated to a specific individual or unit within a property or parking facility by the owner or management as per a condominium, for instance. However, the individual does not necessarily own the parking space; they only have the right to use it as long as they meet the terms of their agreement.

SUMMARY

There are all kinds of situations when it comes to parking, especially in the inner city where space is sold at a premium. For instance, I have a client here in DC who outright owns a second/additional parking space in a condo building other than one he lives in. Conversely, it’s important to note that nothing comes without some kind of a restriction; for instance, a homeowners’ association may limit the sale of a parking space to owners in the same condominium complex for security reasons. Even land owned in fee simple can have restrictions on its use or transfer.

    To summarize, there are important, essential differences between assigned parking and deeded parking that every buyer and real estate broker should be familiar with and it behooves the buyer to know exactly what those conditions are before they enter into a purchase.  

As always, if you have any questions on the subject, please feel free to reach out to me and as always seek the advice of a lawyer or like specialist for the final word.