MAKE YOUR FREE Car Parking Licence
What we'll cover
What is a Car Parking Licence?
A Car Parking Licence is a legally binding agreement between the owner of a parking space and someone who wants to rent the parking space. Car Parking Licences allow those renting a parking space to park their vehicles there.
For use in England and Wales only.
When should I use a Car Parking Licence?
Use this Car Parking Licence:
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when you want to let out a car parking space on a short-term basis
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to allow a private individual to park a private motor vehicle (eg car) in the space
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only when the car parking space is in England and Wales
Sample Car Parking Licence
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CAR PARKING LICENCE
This car parking licence is made on the date of the last signature below between:
- (the Owner) and;
- of , (the Licensee).
Definitions and Interpretation
- In this Licence, the following definitions are used:
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. - In this Licence, unless the context requires a different interpretation:
- the singular includes the plural and vice versa;
- references to sub-clauses, clauses, schedules or appendices are to sub-clauses, schedules or appendices of this Licence;
- a reference to a person includes firms, companies, government entities, trusts and partnerships;
- the headings and sub-headings do not form part of this Licence.
- Words importing one gender include all other genders and words importing the singular include the plural and vice versa.
- If two or more persons are together the Licensee their obligations to the Owner shall be joint and several.
- Any obligation on the Licensee to do or not to do something includes an obligation on the Licensee to use their reasonable endeavours to ensure that no other person does or fails to do that same thing.
Grant of Licence
- The Owner permits the Licensee to use the Space for parking the Car for private purposes during the Designated Hours for the Licence Period in common with the Owner and others authorised by the Licensee, together with any access over the Property to and from the Space.
- The Owner can change the allocation of the Space as often as required and without prior notice.
- The use of the Space is at the Licensee's own risk and the Owner is not responsible for loss or damage to the Car, its contents or for any loss or damage of any kind arising from this Licence or the Licensee's use of the Space.
- This Licence is personal to the Licensee and must not be transferred.
- The Owner has control and possession of the Space and the Licensee will use the Space as a licensee only and no relationship of landlord and tenant is created by this Licence.
Licensee's Obligations
- To pay the Licence Fee (and any VAT) and all other sums due under this Licence (whether formally demanded or not) clear of all deductions at the agreed times.
- Not to allow any other person to use the Space.
- Not to make any alteration or addition to the Space and to keep the Space unobstructed and clear of rubbish.
- Not to cause a nuisance to any other person in neighbouring properties or to any other person at the Property.
- To indemnify and keep the Owner indemnified against all actions, proceedings, costs claims and liabilities arising directly or indirectly from the use of the Space and any breach of its obligations under this Licence.
Termination
- Either party may terminate this Licence by giving prior written notice to the other, but without prejudice to any rights the Owner or Licensee may have against the other for breach of the terms of this Licence or otherwise.
- If the Licensee is in breach of any of its obligations under this Licence, then the Owner can give written notice to terminate the Licence immediately but without prejudice to any rights the Owner may have against the Licensee for breach of the terms of this Licence or otherwise.
- Upon termination of this Licence, the Licensee must immediately remove the Car from the Space.
General
- The Owner will not be liable to the Licensee or any other person for any obstruction, damage, injury or liability caused by another person using the Space.
- Any notice or other document shall be served on the Licensee or the Owner during the Licence by first class post at the address of the receiving party given in the Licence, unless the party has notified the other of a different address at which notices are to be served. Notices shall be deemed served the day after posting.
- A person who is not a party to this Licence may not enforce any of its terms under the Contracts (Rights of Third Parties) Act 1999.
- This Agreement shall be governed by and interpreted according to the law of England and Wales and all disputes arising under the Agreement (including non-contractual disputes or claims) shall be subject to the exclusive jurisdiction of the English and Welsh courts.
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About Car Parking Licences
Learn more about making your Car Parking Licence
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How to make a 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
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What are the parking space owner’s details (eg legal structure, name and address)?
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If the owner is a company, LLP or partnership, who will sign the Licence on its behalf?
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What are the licensee’s details (ie name and address)?
The parking space
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Is the parking space located at the owner’s address? If not, where is it located?
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What is the registration number of the vehicle that can park in the parking space?
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On what date will the Licence start?
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On what days the space can be used?
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At what times can the space can be used?
Licence fee
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How much is the licence fee?
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Must the licence fee be paid:
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Weekly? On what day of the week must the licence fee be paid?
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Monthly? On what day of the month must the licence fee be paid?
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Termination
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How much notice must be given to end the Licence?
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Common terms in a Car Parking 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:
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the requirements for the service (ie delivery) of any notices under the Licence
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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
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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.
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Legal tips for making a Car Parking Licence
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:
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renting out a parking space that is linked to business premises
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a licensee that is a company
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long-term arrangements
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a parking space that is outside England and Wales
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Car Parking Licence FAQs
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What is included in a Car Parking Licence?
This Car Parking Licence template covers:
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the details of the owner (ie the person who owns the parking space)
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the licensee’s details (ie the person paying the fee for the use of the parking space)
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the licence fee
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restrictions on the times and hours of use of the space
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owner's responsibilities
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licensee's responsibilities
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ending the licence
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an indemnity from the licensee for all claims arising from the use of the space
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Why do I need a Car Parking Licence?
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.
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What is a licence?
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.
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Does the Car Parking Licence include an indemnity?
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.
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Is the parking space at the owner's address?
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.
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What days can the space be used?
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.
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What is the parking space licence fee?
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.
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How long is the licence period?
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.
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Who can end the Car Parking Licence?
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.
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