Car parks and storage lots: title, lending and use.

A car space or storage cage rarely earns its own paragraph in a sale brochure. It should. The way these lots are titled, governed and lent against quietly determines whether a buyer ends up with a usable asset, a restricted licence, or a problem at refinance.

In Victorian apartment buildings the patterns repeat. The car space is sometimes a separate lot on title, sometimes an accessory lot tied to the apartment, and sometimes only a licensed right to occupy common property. Each has very different legal, financial and practical consequences.

Separate titles, accessory lots and common-property licences

A separately titled car park or storage lot can be sold, mortgaged and — subject to owners corporation rules — sometimes leased independently of the apartment. An accessory lot is legally attached to a principal lot and moves with it; it cannot be sold off on its own. A licensed car space is not a lot at all: it is a contractual right over common property, often revocable or reassignable by the owners corporation.

The plan of subdivision is the source of truth. Read it together with the Section 32 and the owners corporation rules before you assume what is being sold.

Storage cages: lot, accessory or licence

Storage cages follow the same three patterns. A cage shown on the plan as a separate lot has clear ownership. A cage marked as an accessory lot is bound to the apartment. A cage created later — fenced off in a corner of the basement and allocated by the developer or owners corporation — is usually a licence, and its security depends entirely on the document that created it.

A storage cage is only as durable as the instrument that grants it. A line on a marketing plan is not a title.

Owners corporation rules that change the value

Rules and special rules can restrict how a car space is used, who can park in it, whether it can be leased to a non-resident, and what may be stored in a cage. Combustible-goods restrictions are common; restrictions on bicycles, trailers and commercial vehicles are not unusual. Check the consolidated rules registered with Land Use Victoria, not just the version handed out at inspection.

Access, dimensions and the physical reality

Title says one thing; the basement says another. Confirm the bay number on site, measure the width and length, and check column intrusions, swing room and headroom against the vehicle you actually drive. Tandem bays, stackers and mechanical lifts each carry their own conditions of use and maintenance levies.

• Bay number matches the plan of subdivision and the contract.
• Clear width, length and headroom for the intended vehicle.
• Access route — ramp gradients, security gates, turning circles.
• Stacker or lift mechanisms, maintenance responsibility and levies.

Lending and valuation

Banks treat standalone car parks and storage lots conservatively. Many lenders will not provide a mortgage on a car park bought without an adjoining residence, will require a lower LVR, or will price the loan as commercial. Valuers may attribute little or no separate value to an accessory lot. Confirm appetite with your lender before signing — not after.

Leasing restrictions

Even when a car park is separately titled, the owners corporation rules, the planning permit and the head lease (in mixed-use buildings) may restrict leasing to non-residents or to short-stay users. Council parking-overlay conditions sometimes tie a bay to the apartment and prohibit external rental altogether.

EV charging and basement infrastructure

Installing an EV charger in a basement bay is rarely a simple electrical job. It usually requires owners corporation consent, a load assessment of the building's main switchboard, sub-metering, and — in older buildings — an upgrade to common-property infrastructure. Some buildings have adopted EV-ready policies; many have not. Ask for the resolution, the metering arrangement and the cost-sharing rule in writing.

Due diligence before you sign

• Read the plan of subdivision and confirm lot type — principal, accessory, or licence.
• Review the owners corporation rules and minutes for parking, storage and EV resolutions.
• Inspect the bay and cage on site; match numbers to the plan and contract.
• Confirm lender appetite, LVR and valuation treatment for the lot type.
• Check planning permit conditions and any restrictions on leasing or use.
• Have a property lawyer review the Section 32, contract and any licence document together.

Car parks and storage lots are small assets that behave like full property transactions. Treated that way at the contract stage, they rarely cause trouble later.