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Parking space licensed, not deeded?

Started by KellyeD
over 8 years ago
Posts: 0
Member since: Feb 2014
Discussion about
I recently found out the building I'm buying in provides parking spaces by licensing fee, not deeds. The current licensing agreement requires $50k up front and then $85.00 a month for a space. It allows for the license to be sold with the unit, rented out, etc. My problem with it is that the license agreement allows the building to revoke use at any time. Does anyone have experience with this type of agreement? Or tips on getting the building to amend the agreement with a renewable term/refund of the initial fee if the agreement is terminated before x years of use? It's a building built in 2008 in East Williamsburg.
Response by Ned
over 2 years ago
Posts: 0
Member since: Jan 2018

Hi ,
I also have similar questions as my condo building is the same way.
Hoping to “bump” this very old post and get some input if anyone is experienced with this !
Also , would these kind of agreements be considered as valuable as a deeded spot ?

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Response by Aaron2
over 2 years ago
Posts: 1697
Member since: Mar 2012

What rights, exactly, are in that 'license'? The ability for the licensor to revoke at any time (or even at the end of some period) makes it near worthless. So, no, this 'license' is significantly less valuable than a deeded spot. Also, do the math on the income of $50k invested, vs the offset 'savings' of a cheap(?) spot versus the going rate for garages in the area.

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Response by steve123
over 2 years ago
Posts: 895
Member since: Feb 2009

Seems like an insane arrangement unless you get the contract amended to give you actual perpetual rights or reimbursement schedule if license revoked.

Even yuppie N BK parking is like $300/mo.
So break even for $50k+$60/mo is like… 17 years lol.
If they revoke, ouch.

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