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This car parking licence is made on the date of the last signature below between:
| Car | the private motor vehicle to be parked in the Space registration number which belongs to the Licensee (or such other vehicle as may be agreed between the Owner and the Licensee); |
|---|---|
| Designated Hours | the hours of to on the following days of the week: |
| Licence | this car parking licence and any amendments from time to time; |
| Licence Fee | the sum of £ payable in advance on of every week; |
| Licence Period | a term starting on and continuing until the date the licence is terminated in accordance with clause 16; |
| Plan | the plan attached to this Licence; |
| Property | the Owner's property at: |
| Space | the area of hard standing at the Property or such other space as the Owner may allocate to the Licensee from time to time without notice; |
| VAT | Value added tax payable under the Value Added Tax Act 1994 or any similar or equivalent tax payable instead of or in addition to VAT. |
| _________________________________ | _________________________________ |
This Car Parking Licence template covers:
the details of the owner (ie the person who owns the parking space)
the licensee’s details (ie the person paying the fee for the use of the parking space)
the licence fee
restrictions on the times and hours of use of the space
owner's responsibilities
licensee's responsibilities
ending the licence
an indemnity from the licensee for all claims arising from the use of the space
Use a Car Parking Licence if you wish to rent out your residential parking space on a short-term basis. A Car Parking Licence allows you to keep control of the parking space so that the licensee does not obtain any rights in the space. Once completed, this Licence is personal to the licensee and cannot be transferred to another person.
Agreeing to let out your parking space can be a good way of raising some extra cash but it's best to put the terms in writing so that everyone is clear on where they stand. By making a clear Car Parking Licence dealing with all the key issues helps you formalise the arrangements and be sure of getting the space back when you want to.
A licence is a document that gives someone personal permission to occupy premises (eg a parking space). The person granting the licence (ie the owner) is known as a ‘licensor’ and the person being granted the licence (ie the person using the parking space) is known as a ‘licensee’.
Unlike a residential tenancy, a licence does not give the licensee a legal interest in or control over (ie exclusive possession of) the premises. By contrast, a tenancy (ie a lease) grants the occupier exclusive possession of the relevant premises. A tenancy generally comes with enhanced legal protections for the occupier, for example, the requirement that the landlord follows certain strict procedures to end the tenancy (ie to evict the tenant).
This Car Parking Licence is a contractual licence. This means that the licensee is allowed to use the licenced-out space (ie the parking space) without any of the protections provided by a tenancy. However, a contractual licence is still a legal contract which binds both parties. This means that if any obligations under the Car Parking Licence are broken (eg the licence fee remains unpaid), the other party may bring a claim for breach of contract.
For more information, read Leases, licences and tenancies.
Under the Car Parking Licence, the licensee must provide certain indemnities to the owner. Indemnities are legally binding promises made by one party to another to compensate them for loss suffered as a consequence of a specific event. Under this Car Parking Licence, the licensee indemnifies the owner against any costs and claims arising from their use of the space and any breach of their obligations under the Licence.
Further, during the licence period, the car is parked in the space at the licensee’s risk.
For more information, read Indemnity.
You can use this Car Parking Licence for parking spaces located at your address or at a different address.
If the parking space is at your address, this will be the address of the parking space in the Licence. If it is not at your address, you will need to enter the parking space address in the Licence.
It is usual to include a plan showing the space in the Car Parking Licence.
You can restrict the licence’s access to parking in the space to specific times on specific days. The space may be available only on certain weekdays and not weekends. On what days and at what times the licensee can use the parking space is a decision for you to make.
By limiting the licensee’s right to access the space you help ensure that the agreement is interpreted as a licence. This is because restricting parking access makes it clear that the licensee does not gain any formal right to the space.
The licence fee is the amount you charge the licensee to use the car parking space. Your Car Parking Licence should specify how much this fee is and how regularly it must be paid.
The licence fee should include the cost of insuring the land and any services provided (eg providing a gate or cleaning the parking area).
Note that under this Car Parking Licence, the licence fee is exclusive of Value Added Tax (VAT) but the licensee must pay any VAT that is due.
The licence period is the duration for which the Car Parking Licence lasts. This Car Parking Licence does not have a fixed term (ie it does not have a specified end date). As a result, it will run from the start date until it is brought to an end by one of the parties.
The Car Parking Licence can be terminated (ie ended) by either party by giving notice to the other. It is usual for the notice period to be a short period of time linked to the payment of the licence fee (eg one month if the licence fee is paid monthly or one week if the licence fee is paid weekly). You can specify a notice period when making the Car Parking Licence.
The Car Parking Licence can also be ended immediately if the licensee is in breach of their obligations under the Car Parking Licence.
Making a Car Parking Licence online is simple. Just answer a few questions and Rocket Lawyer will build your document for you. When you have all of the details prepared in advance, making your document is a quick and easy process.
To make your Car Parking Licence you will need the following information:
Owner and licensee
What are the parking space owner’s details (eg legal structure, name and address)?
If the owner is a company, LLP or partnership, who will sign the Licence on its behalf?
What are the licensee’s details (ie name and address)?
The parking space
Is the parking space located at the owner’s address? If not, where is it located?
What is the registration number of the vehicle that can park in the parking space?
On what date will the Licence start?
On what days the space can be used?
At what times can the space can be used?
Licence fee
How much is the licence fee?
Must the licence fee be paid:
Weekly? On what day of the week must the licence fee be paid?
Monthly? On what day of the month must the licence fee be paid?
Termination
How much notice must be given to end the Licence?
Car Parking Licences set out the terms of the relationship between the owner of a parking space and a licensee, to avoid confusion and disputes. As a result, this Car Parking Licence template covers:
This Car Parking Licence is made on the date of the last signature below between…
The Car Parking Licence starts by clearly identifying the owner of the parking space and the licensee (ie the person renting the parking space under the Licence).
Definitions and interpretation
This table provides the meanings of certain defined terms used throughout the Car Parking Licence. For ease of identification, the defined terms are capitalised throughout the Agreement. Examples include ‘Car’, ‘Designated Hours‘, ‘Licence Fee’ and ‘Space’.
Grant of Licence
This section grants the licensee the right to use the parking space under this Car Parking Licence. It sets out the uses that may be made of the parking space as well as use restrictions (eg the licensee cannot transfer the Licence to another person). It also contains language intended to clarify the parties’ intentions that a licence and not a tenancy be created.
Licensee’s obligations
This section sets out what the licensee is promising to do and not do by signing the Licence. Examples include paying the licence fee and any VAT due, not allowing another person to use the parking space and not causing a nuisance.
Termination
This section details when and how the Licence may be ended by either party. It sets out the required period of notice that either party must give. It also clarifies that the owner can end the Licence immediately if the licensee breaches the terms of the Licence.
General
This section covers various points of law governing how this Car Parking Licence operates. These are often known as ‘boilerplate clauses’ and include:
the requirements for the service (ie delivery) of any notices under the Licence
the exclusion of the Contracts (Rights of Third Parties) Act 1999. This essentially means that third parties (ie not the owner or the licensee) that would otherwise have rights to enforce obligations under this contract cannot do so
the Licence’s ‘jurisdiction’ (ie which country’s legal systems must be used to resolve any disputes)
If you want your Car Parking Licence to include further or more detailed provisions, you can edit your document. However, if you do this, you may want a lawyer to review or change the Car Parking Licence for you, to make sure it complies with all relevant laws and meets your specific needs. Ask a lawyer for assistance.
Make sure not to create a tenancy relationship
The Car Parking Licence is designed to be a licence and not a lease. However, simply using the term ‘licence’ to describe the licensee’s occupation of the space is not enough to establish that they have a licence and not a lease. Whether such a contractual relationship is a licence of a lease depends on the nature of the situation. For example, whether or not the licensee has exclusive possession of the property. For more information, read Leases, licences and tenancies. If you have any questions or are worried about unintentionally creating a lease, Ask a lawyer.
Understand when to seek advice from a lawyer
Ask a lawyer for advice on:
renting out a parking space that is linked to business premises
a licensee that is a company
long-term arrangements
a parking space that is outside England and Wales
