Advantages & Importance of Undivided Share of Land in Your Apartment

Undivided Share of Land in Apartment
09:32 AM 04 Oct 2018

What is the meaning of the undivided share of land?

When you buy an apartment, you are buying just a portion of the land on which the apartment is constructed. It is the undivided share of land (UDS) in your apartment.

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 flats.

Let’s assume that the apartment has 100 2BHK flats of size 1000 sq.ft and 100 3BHK flats of size 1500 sq.ft.

What is your undivided share of land? How is it calculated?

An illustration of UDS:

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.

UDS = (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, UDS = 500 sq.ft.

UDS of a 3BHK flat = [1500/(100*1000+100*1500)] * 125000

Therefore, UDS = 750 sq.ft.

Importance of UDS

  • 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 UDS of your flat.

The price of land appreciates while that of a flat depreciates.

If you know the land rate and your corresponding UDS 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).

If you own parking space in the apartment, you must add this to calculate your UDS in the apartment.

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 UDS. 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 share in the area of the apartment or house.

If you have a car park, add the area of the car park to your UDS.

UDS 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 UDS?

You must know about UDS for the following reasons:

  1. It tells you how much consideration you will get when you sell the property.
  2. It is useful when you inherit the property.
  3. To calculate the compensation in the case of any natural calamity such as floods, earthquake, and so on.
  4. In the case of redevelopment.
  5. To determine compensation when the government acquires the property or a part of the property.
  6. 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 flat without the consent of the other co-owners. Your UDS 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?

UDS is mentioned in the property document. You must check and verify if your UDS matches with the actual UDS and 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 UDS 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 unauthorized construction either in the form of additional floors or more flats. The new floors 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 constructs 30.

The cost of maintenance and the need for water, sewerage, and other basic amenities increases.

If there are more flats in the same complex, your UDS of 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.

EIPL group is a developer who is known for constructing projects that are spacious and luxurious.

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By: Lotus Tech