top of page
  • Writer's pictureRadix realtors

Undivided Share of land

Every thing you need to know


Undivided Share of land : Undivided share is a part of land held by the buyer of the apartment in a residential complex on a plot on which the entire structure is constructed. Each and every flat built on that particular plot will have a share in the land but will not have any defined boundaries.


The cost of an apartment usually has two major components –

1. Cost of the structure

2. Cost of the land.


The cost of land is the price of the undivided share of land in the building. When the Apartment \ Building is at a phase where redevelopment is needed or if it is acquired by Government and then brings the structure down, this is the time when the property owners will get compensation on the basis of UDS which they have under their name.


Note: The price of the land is due to increase but the structure loses its value due to depreciation.


Homebuyers should be aware that price appreciation mainly affects the land value because built-in structures depreciate over time and hence lose value. Because of this, analysts assert that your landholdings will be important in the future. An ideal informed home buyer will always want to know what utilities are included with the apartment.


Homebuyers should be aware that parking spaces are quite expensive for the same reason. If the developer offers you a designated parking space, the land for the space is included in your overall UDS. To Claim this the buyer must see to it that the developer records the parking lot under the owner's name.


Things you should know about UDS

  • Your Sale Agreement should mention the UDS - Undivided share. You can ask the builder, if it is not mentioned in the agreement.

  • If the UDS promised and mentioned in the agreement are different, clarify the same, before registering the document.

  • For Loan applicants, banks will check the UDS while approving your loan. If you are buying a resale property, they will check for the share certificate from your housing society.

  • During the property registration, as well, the sub-registrar would check the share certificate.

  • Usually in co-operative housing societies, each member has an equal UDS, irrespective of the size of their unit.

Calculating UDS

You will need to apply the following formula:


UDS = Your apartment’s super built up area / Sum of all apartments super built up area x total area


Here is an example

For an Apartment (2 BHK - 1000Sq ft super built up)

Assuming that you have a flat in a building which is constructed on a land piece of 2000 sq. ft. The building has 7 flats of 1000 sq ft.

UDS = 1000 / 7000 x 2000 sq ft.

UDS = 285 sq ft.


This will translate to 28% of the super built-up area for the owned apartment.

The builders nowadays mention UDS on the sale agreement with other property details. While processing home loans, the banks usually look at your share of UDS.


Summary: It's critical for a homebuyer to know what utilities are included with the apartment, and the same to be present in the sale agreement.




20 views

留言


bottom of page