Everyone wants to own a land for their home, but with certain land constraints and growing population or regarding financial aspects, apartments have gained massive popularity for its affordability. But before opting for apartments, a lot of questions rises for buyers related to the purchasing process and builder-buyer agreement. A significant word in such scenarios is Undivided share or UDS.
What Is Undivided Share of Land?
When you buy an apartment, you are purchasing just a portion of the land on which the residence apartment is constructed. It is the undivided share of land (UDS) in your apartment.
UDS or Undivided Share of Land may be a part of the plot given to the owner of the flat in Associate in advanced on that the whole structure is made. This share of land has no outlined boundaries, and every flat designed on its specific plot can have associated undivided share of land.
An undivided share in common property could be a share of land assigned to the flat purchaser, whereas buying a property and it's registered within the name of the owner. Once a vendee purchases associate housing, he/she is entitled to two things: the created building and also the proportionate share of land, wherever the entire building is made. The value appreciation of the property is that the actual appreciation of the land and not the building, that the property value depends on the undivided share in the common property.
For example, the area of land on which the apartment is constructed is 1,25,000 sq.ft.
You own a 2BHK flat of size 1000 sq. Ft in the apartment that has 200 units.
What Is an Undivided Share of Land as per Your Property? How Is It Calculated?
An illustration of undivided share in common property:
If you buy one apartment in a gated community that has a total of 200 apartments, you must know how much of the undivided share of land (UDS) you own.
undivided share of land = (Built up area of your flat / Total built-up area of all the apartments) * Total land area on which the apartment is constructed
UDS of your 2 BHK flat = [1000/ (100*1000+100*1500)] * 125000
Therefore, undivided share of land = 500 sq.ft.
UDS of a 3BHK flat = [1500/(100*1000+100*1500)] * 125000
Therefore, undivided share of land = 750 sq.ft.
Importance of Undivided Share of Land
Have you ever thought about what is going to happen to your housing just in case of a natural disaster like associate degree earthquake, building collapse or if the government needs to accumulate the property for a public project?
- Though the housing society needs to redevelop the property, the building is dismantled and solely, the undivided share of land is what all it matters. It's crucial to grasp your undivided share during a multi-storey residential project.
- The add of all the undivided share in the common property should be up to the dimensions of the land within which the flats are created. A lot of undivided share of land one buys the higher worth for cash in future.
- Just in case of co-operative societies, the undivided share of land is within the name of the society because of the flat house owners are the shareholders of the society. Otherwise, the flat house owners ought to check their share of undivided share of land within the understanding.
- The undivided share of land is useful if your apartment is demolished and reconstructed or redeveloped.
- Your share in the newly developed building will correspond to an undivided share of land you own in the old apartment.
How Is Compensation Decided for Flats or Common Property When It Goes for Redevelopment, or a Part of the Land Is Acquired by the Government?
The government acquires a part of the land (in your apartment complex) for widening a road, or any other infrastructure development. The compensation is given based on the undivided share of land of your flat.
The price of land appreciates while that of a flat depreciates.
If you know the land rate and your equal, undivided share of land in the apartment, you can calculate the actual value of the property. When you sell the property, you can find out how much is your return on investment (ROI).
Undivided Share of Apartment for Parking Space
If you own parking space in the apartment, you must add this to calculate your UDS in the apartment. Some assets builders and developers are guilty within the past of commercialism open or stilt automotive parking areas to individual homeowners. As per Indian law, car parking will solely be oversubscribed as a part of} a shared space and can't be lawfully enclosed as part of the ground space for individual residences.
One needs to check the validity of undivided share in common property, whereas buying property while paying advance for any property, certified builder or the vendor provides you with the agreement copy. The agreement copy between the builder and also the vendor holds all the necessary details of the property in question as well as the small print of the undivided share of land.
There is sometimes an infatuated section within the agreement that offers the small print relating to the undivided share in common property, that is usually mentioned in either proportion terms or actual sq. Feet terms. The certified agreement specifies your undivided share within the land. A similar figure ought to be mentioned within the deed once the registration is completed.
In the example given above, when you demolish the apartment, a person who has a 2BHK gets 500 sq.ft worth of UDS. While, for a 3BHK, you get 750 sq.ft of UDS.
Therefore, you must know how much-undivided share of land you own.
How is UDS Mentioned in the Property Documents?
The sale deed contains an undivided share of land. If you are buying a house in a cooperative housing society, the undivided share of land is allotted in the form of shares in the registered cooperative society.
UDS is mentioned either in sq.ft or as a percentage of the total area you own in the apartment.
In the case of the cooperative housing society, you will get a share certificate that has the number of shares you own in the cooperative housing society. It is equal to your percentage in the area of the apartment or house.
If you have a car park, add the area of the car park to your undivided share in common property
an undivided share in common property reduces as the number of flats increases as it is calculated as a share in the total area of the apartment.
Why Should You Know About Undivided Share of Land?
The legitimate association of undivided land share addresses it as an essential part of any real estate deal. If in case the building in which you reside is too wrecked for reconstruction after many years down the line or originates under a government procurement project and made accessible for annihilation, the coverage contributed to the flat owner will depend on the percentage of the undivided land share in the property.
The total of all the undivided shares for individual apartment owner need to be proportionate to the area of the land in which the apartment has been built. In the case of co-operative housing communities, the undivided share in the common property needs to be legally on the name of the society considering the flat owners are the shareholders of the community.
You must know about the undivided share of land for the following reasons:
- It tells you how much consideration you will get when you sell the property.
- It is useful when you inherit the property.
- To calculate the compensation in the case of any natural calamity such as floods, earthquake, and so on.
- In the case of redevelopment.
- To determine compensation when the government acquires the property or a part of the property.
- Each co-owner of an apartment has a share (that is not always equal) in the apartment. You can dispose of your share separately without the consent or knowledge of the other co-owners.
The owner of a flat in an apartment complex can gift or sell his unit without the consent of the other co-owners. Your undivided share of land is mentioned in the property documents as your property is inheritable or transferable. It is useful when you transfer the property.
What Happens if You Don't Know UDS? How Does it Affect You?
Undivided share of land is mentioned in the property document. You must check and verify if your UDS matches with the actual UDS and a super built-up area of your house.
To improve transparency and help buyers, the Real Estate Regulation Act, 2016 (RERA) makes it mandatory to declare the correct carpet area, super built-up area, and undivided share of land to the buyer.
What Happens If the Undivided Share of Land Is Not Accurate?
If UDS is not accurate in the sale deed or property documents, you will not get the full value of your share of the undivided land when there is a transfer, redevelopment, or takeover by the government.
The builder can take up unauthorised construction either in the form of additional floors or more flats. The new levels add to the density of the apartment where more people live.
For example, if the builder has got approval to construct 24 flats, while he builds 30.
The cost of maintenance and the need for water, sewerage, and other necessary amenities increases.
If there are more flats in the same complex, your undivided share of the land reduces.
- The builder does not construct one or two upper floors as there is less demand for flats, and there is a slowdown in the property market. If you buy a flat in such an apartment, and UDS is allotted as per the earlier plan (with additional floors).
You must ask the builder to rectify the sale deed and include the correct calculation of UDS. The unallocated UDS remains with the builder or property owner.
When you want to sell, gift or redevelop the apartment, you will not get a fair share in the land as the UDS in the sale deed was not rectified.
Therefore, ensure that the UDS is correctly calculated.
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