Parking Bay Licence Agreement (Malaysia)
PARKING BAY LICENCE AGREEMENT
Contracts Act 1950 (Act 136) | Strata Management Act 2013 (Act 757) | Stamp Act 1949 (Act 378)
THIS PARKING BAY LICENCE AGREEMENT is entered into on [Agreement Date]
BETWEEN:
(1) [Licensor Name], of [Licensor Address] (hereinafter referred to as the "Licensor"); AND
(2) [Licensee Name], of [Licensee Address] (hereinafter referred to as the "Licensee").
BACKGROUND
The Licensor is the owner or authorised manager of parking bay no. [Parking Bay Number] (the "Parking Bay") located at [Property Name and Address] (the "Building") and is willing to grant the Licensee a personal licence to use the Parking Bay on the terms and conditions set out in this Agreement.
1. GRANT OF LICENCE
1.1 The Licensor hereby grants to the Licensee a personal, non-exclusive, non-transferable licence to use the Parking Bay for parking one (1) [Permitted Vehicle Type] only, commencing on [Start Date] (the "Commencement Date") and continuing until [End Date] (or on a rolling monthly basis as applicable) (the "Licence Period").
1.2 This licence does not grant the Licensee exclusive possession of the Parking Bay, any interest in land, or any right enforceable against third parties. The Licensor retains full ownership and management of the Parking Bay at all times.
1.3 The Licensee shall use the Parking Bay solely for parking the permitted vehicle type stated above and for no other purpose whatsoever.
2. LICENCE FEE AND DEPOSIT
2.1 The Licensee shall pay the Licensor a monthly licence fee of [Monthly Fee] (the "Licence Fee"), payable in advance on or before the 1st day of each calendar month throughout the Licence Period.
2.2 The Licensee shall pay a refundable deposit of [Deposit Amount] upon execution of this Agreement. The deposit shall be refunded to the Licensee within 14 days after the termination or expiry of this Agreement and the return of all access cards or keys, less any amounts properly deducted for unpaid Licence Fees or damage to the Parking Bay caused by the Licensee.
2.3 If the Licence Fee remains unpaid for more than 14 days after the due date, the Licensor may suspend the Licensee's access to the Parking Bay without further notice.
3. LICENSEE'S OBLIGATIONS
3.1 The Licensee shall: (a) use the Parking Bay only for parking the permitted vehicle type; (b) comply with all building management rules and the by-laws of the Joint Management Body or Management Corporation under the Strata Management Act 2013; (c) not sub-licence or permit any third party to use the Parking Bay; (d) not store any goods, materials, or items in the Parking Bay; and (e) not make any alterations to the Parking Bay without the Licensor's prior written consent.
3.2 The Licensee shall be responsible for all damage to the Parking Bay caused by the Licensee, its vehicles, or its agents, beyond reasonable wear and tear.
4. TERMINATION
4.1 Either party may terminate this Agreement by giving [Notice Period] written notice to the other party.
4.2 The Licensor may terminate this Agreement immediately upon written notice if the Licensee fails to pay the Licence Fee for two or more consecutive months, or commits a material breach of any term of this Agreement that is not remedied within 7 days of written notice.
4.3 Upon termination or expiry, the Licensee shall immediately cease use of the Parking Bay and return all access devices to the Licensor.
5. GENERAL PROVISIONS
5.1 This Agreement is governed by the laws of Malaysia including the Contracts Act 1950 (Act 136) and the Strata Management Act 2013 (Act 757).
5.2 Any dispute arising under this Agreement shall be referred to the courts of Malaysia or, for strata-related disputes, the Strata Management Tribunal under the Strata Management Act 2013.
5.3 This Agreement shall be stamped at the Inland Revenue Board of Malaysia (LHDN) under the Stamp Act 1949. The cost of stamping shall be borne by the Licensee.
5.4 This Agreement constitutes the entire agreement between the parties with respect to the Parking Bay and supersedes all prior oral or written arrangements.
Licensor
________________
Signature
Licensee
________________
Signature
What Is a Parking Bay Licence Agreement (Malaysia)?
A Parking Bay Licence Agreement in Malaysia grants defined rights to use the licensed subject matter on the terms it specifies.
Parking bays in strata developments — condominiums, serviced apartments, and commercial office towers — are governed by the Strata Titles Act 1985 (Act 318) and the Strata Management Act 2013 (Act 757). Under the Strata Titles Act 1985, parking bays may be designated as accessory parcels attached to individual strata parcels or as common property managed by the Joint Management Body (JMB) or Management Corporation (MC). Where a parking bay forms part of common property, the MC or JMB may grant licences for its use under Section 59 of the Strata Management Act 2013, subject to the by-laws and resolutions of the MC or JMB.
For commercial properties such as shopping malls and office buildings, parking licences are typically governed by the building management and the terms of the principal tenancy or separate licence agreement. Bank Negara Malaysia's guidelines on real property financing do not specifically regulate parking bay licences, but lending institutions typically require disclosure of parking bay arrangements when assessing mortgage applications for strata units.
Stamp duty on a Parking Bay Licence Agreement in Malaysia is assessed under the Stamp Act 1949 (Act 378), Schedule 1, Item 22, as a licence for a term. The stamped agreement is required for admissibility in any civil proceedings before the Magistrates' Court or Sessions Court under Section 52 of the Stamp Act 1949. Stamping is performed at the Inland Revenue Board of Malaysia (Lembaga Hasil Dalam Negeri Malaysia, LHDN) or through the LHDN e-Stamping portal.
The legal framework governing the Parking Bay Licence Agreement (Malaysia) in Malaysia draws on several key statutes and regulatory bodies. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Parties executing a Parking Bay Licence Agreement (Malaysia) in Malaysia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The National Land Code 1965 (Act 56) sets the foundational requirements.
When Do You Need a Parking Bay Licence Agreement (Malaysia)?
A Parking Bay Licence Agreement in Malaysia is required whenever an owner, MC, JMB, or building manager grants another party the right to use a parking bay on a formal, documented basis.
A Parking Bay Licence Agreement is needed when a condominium owner in Kuala Lumpur, Selangor, or Penang grants a neighbour or third party the right to use their accessory parcel parking bay. The accessory parcel number should be stated as registered under the Strata Titles Act 1985 with the relevant state land authority.
A Parking Bay Licence Agreement is required when a Joint Management Body or Management Corporation under the Strata Management Act 2013 allocates common property parking bays to residents or commercial tenants for a monthly licence fee. The JMB or MC must pass a resolution authorising such licences under the by-laws established under the Strata Management (Maintenance and Management) Regulations 2015.
A Parking Bay Licence Agreement is needed when a commercial building owner or shopping mall operator grants parking rights to a corporate tenant or individual commuter on a monthly or annual basis. Such arrangements are common in the Kuala Lumpur City Centre (KLCC) and Bangsar South commercial precincts where parking is scarce.
A Parking Bay Licence Agreement is required when a property developer allocates parking bays to purchasers of commercial units pending issuance of strata titles under the Housing Development (Control and Licensing) Act 1966 (Act 118) or the Strata Titles Act 1985. Until strata titles are issued, parking bays are licenced rather than transferred with title.
A Parking Bay Licence Agreement is needed when an employer provides a parking bay to an employee as a benefit-in-kind, where the monetary value of the parking benefit must be recorded for income tax purposes under Section 13(1)(b) of the Income Tax Act 1967 (Act 53) and reported to the Inland Revenue Board.
What to Include in Your Parking Bay Licence Agreement (Malaysia)
A complete Malaysia Parking Bay Licence Agreement must contain the following essential elements under the Contracts Act 1950 and the Strata Management Act 2013.
Parties: Full legal names and MyKad or passport numbers of the licensor and licensee. For corporate parties, the Companies Commission of Malaysia (SSM) registration number under the Companies Act 2016 (Act 777) and registered address. Where the licensor is a JMB or MC, the body corporate registration number issued under the Strata Management Act 2013 must be stated.
Parking bay identification: The specific parking bay number, level, and location within the building or development. For strata properties, the accessory parcel number as registered under the Strata Titles Act 1985 with the relevant Pejabat Tanah dan Galian (state land office). For non-strata commercial properties, a site plan or floor plan clearly identifying the bay should be annexed.
Licence period: Commencement date and expiry date in DD/MM/YYYY format, or a rolling monthly term. The agreement should state the notice period required to terminate a rolling licence — typically 30 days' written notice.
Licence fee: Monthly or annual fee in Malaysian Ringgit (RM), due date, accepted payment methods, and late payment provisions. Any deposit held against damage or non-payment should be stated, along with conditions for its refund.
Permitted use: Restriction of the parking bay to private motor vehicles of specified type (car, motorcycle, van) as approved by the building management. Prohibition on sub-licensing, storing goods, or commercial activities within the bay.
Building rules compliance: The licensee's obligation to comply with the building by-laws, the Strata Management (Maintenance and Management) Regulations 2015, and any rules of the JMB or MC regarding parking, access, and conduct within the building.
Termination provisions: Circumstances under which either party may terminate the licence, including failure to pay the licence fee, breach of building rules, or the licensor's need to resume possession. The revocable nature of the licence must be clearly stated.
Stamp duty: Acknowledgement that the agreement will be stamped at LHDN under the Stamp Act 1949, with the cost allocated between the parties as agreed.
Additional compliance elements for a Parking Bay Licence Agreement (Malaysia) used in Malaysia include: Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Parking Bay Licence Agreement (Malaysia) (Malaysia) [Legal document template]. Forms Legal. https://forms-legal.com/malaysia/real-estate/leases/parking-bay-licence-malaysia
"Parking Bay Licence Agreement (Malaysia) (Malaysia)." Forms Legal, 2026, https://forms-legal.com/malaysia/real-estate/leases/parking-bay-licence-malaysia.
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title = {Parking Bay Licence Agreement (Malaysia) (Malaysia)},
year = {2026},
howpublished = {\url{https://forms-legal.com/malaysia/real-estate/leases/parking-bay-licence-malaysia}},
note = {Free legal document template. Based on National Land Code 1965 (Act 56)}
}Frequently Asked Questions
A Parking Bay Licence Agreement is legally binding in Malaysia as a contract under the Contracts Act 1950 (Act 136), provided it satisfies the requirements of offer, acceptance, consideration, and the intention to create legal relations under Section 10 of the Contracts Act 1950. The agreement does not confer an interest in land and therefore does not require registration under Section 213 of the National Land Code 1965. However, the agreement should be stamped at the Inland Revenue Board of Malaysia (LHDN) under the Stamp Act 1949 to be admissible as evidence in the Magistrates' Court or Sessions Court in the event of a dispute. An unstamped licence agreement remains valid between the parties but cannot be produced as evidence under Section 52 of the Stamp Act 1949 without first paying the outstanding duty and any penalty.
The key distinction between a parking bay licence and a tenancy in Malaysia is that a licence grants personal permission to use the parking bay without conferring any proprietary interest in land, while a tenancy grants the tenant exclusive possession and an interest in land enforceable against third parties. Under Malaysian common law, applying principles from the English case of Street v Mountford [1985] AC 809 as adopted by Malaysian courts, exclusive possession of a defined space for a term at a rent creates a tenancy rather than a licence. A parking bay within a strata building — where the licensor retains a right to allocate a different bay or to enter and manage the space — is typically characterised as a licence. This distinction matters for stamp duty (tenancies attract Item 22 rates under the Stamp Act 1949) and for the licensor's ability to terminate: a licence may be revoked on reasonable notice without requiring a court order or a Writ of Distress under the Distress Act 1951.
A Parking Bay Licence Agreement in Malaysia should be stamped at LHDN under the Stamp Act 1949 (Act 378) if the licence is for a fixed term or provides for periodic payments. Stamp duty is assessed under Schedule 1, Item 22 of the Stamp Act 1949 based on the annual licence fee. The standard rate is RM 1 per RM 250 of annual rent for licences not exceeding one year. Without stamping, the agreement is inadmissible as evidence under Section 52 of the Stamp Act 1949, though it remains contractually valid between the parties. Stamping can be done at any LHDN branch or through the LHDN e-Stamping portal at stamps.hasil.gov.my. The cost of stamping is typically borne by the licensee by convention, but the parties may agree otherwise. Under Malaysia law, National Land Code 1965 (Act 56), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.
A Joint Management Body (JMB) or Management Corporation (MC) in Malaysia may grant parking bay licences for common property parking bays to residents, commercial tenants, or third parties, subject to the by-laws and resolutions passed under the Strata Management Act 2013 (Act 757). Under Section 59 of the Strata Management Act 2013, the MC or JMB may charge fees for the use of common facilities including parking areas. Any such licensing policy must be approved by ordinary resolution at a general meeting of the JMB or MC and must not contravene the Strata Management (Maintenance and Management) Regulations 2015. Revenue generated from parking licences forms part of the sinking fund or maintenance fund of the MC or JMB under Section 60 of the Strata Management Act 2013. Under Malaysia law, National Land Code 1965 (Act 56), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.
The notice period required to terminate a Parking Bay Licence Agreement in Malaysia depends on the terms of the agreement. Unlike residential tenancies, there is no statutory minimum notice period for terminating a licence under Malaysian law. For a rolling monthly licence, 30 days' written notice is standard market practice. For a fixed-term licence, early termination typically requires the notice period specified in the agreement plus forfeiture of any deposit held. A licensor who revokes a licence without giving reasonable notice may face a claim for breach of contract under the Contracts Act 1950, entitling the licensee to damages for wasted expenditure and any additional costs incurred in finding alternative parking. The licensor should serve termination notices in writing by registered post to create a documentary record for any subsequent proceedings before the Magistrates' Court.
A parking bay licence granted by a property developer in Malaysia before strata titles are issued is valid as a contractual licence under the Contracts Act 1950, even though the developer has not yet registered the strata title under the Strata Titles Act 1985. Before strata titles are issued, the developer remains the registered owner of the land and the building, and has authority to grant licences for parking bays by virtue of that ownership. The Housing Development (Control and Licensing) Act 1966 (Act 118) and its regulations require developers to hand over common facilities including parking areas to the JMB upon formation, which typically occurs within 12 months of the issuance of a Certificate of Fitness for Occupation or a Certificate of Completion and Compliance. After the JMB is formed, the developer's parking licences are novated to or re-issued by the JMB.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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