When buying a flat, buyers often base their decision on the amount of built-up area available and other extra facilities which are attached to the flat. Certain terms may be unfamiliar to first-time property buyers. Undivided Share (UDS) is one term that may not be familiar to the buyer. When purchasing a property in an apartment, the undivided share (UDS) plays an important role.
In this article let us take a look at what are undivided shares or UDS, what UDS means, what is the importance of undivided shares, and the legal importance of undivided shares.
What Is Undivided Share (UDS)
Undivided shares or UDS means a portion of land owned by the buyer of an apartment in a residential complex on which the entire structure is built. Each flat built on that particular land will own a portion of the land, but there will be no defined limits.
What Is The Importance Of Undivided Share Of Land (UDS)
The cost of an apartment is generally divided into two parts: the cost of construction and the cost of the land. The cost of land is the price of the undivided share of land in the building. When the building is renovated or if the government acquires it and demolishes it after some time, the property owners will be compensated based on the undivided share of land (UDS) which is in the name of the owner.
Homebuyers should be aware that price appreciation refers to an increase in land value alone since the value of the constructed home depreciates with time. In case the landowner does not hold an undivided land share, he or she may not be able to sell the property or make a good profit. A smart buyer should always ask about the UDS that comes with the apartment.
How To Calculate The UDS or Undivided Share ?
A simple formula is used to calculate the undivided share of land. It is calculated by multiplying the total land area by the individual apartment’s size and dividing the result by the total area of all flats in the building.
Individual apartment super built-up area / total super built-up area of all apartments * total land area.
An Example for UDS or Undivided Share Calculation
Assume that you have purchased a two-bedroom flat with five identical units on a 1,000-square-foot plot of land. In this instance, each flat owner will receive 200 square feet as the undivided share. If your building has a variety of units, your UDS will be proportionate to the size of your apartment. The illustration is as follows:
Let’s say you own a 3BHK apartment in a complex with 200 flats, 100 of which are 1BHKs, 50 of 2BHKs, and 50 of 3BHKs, and the total land area is 40,000 sq ft. The constructed area of a 1BHK apartment is 500 square feet, a 2BHK is 1,000 square feet, and a 3BHK is 1500 square feet.
Hence the total land area of the society would be
(100×500) + (50×1000) + (50×1500) = 1,75,000 sq ft.
- So, for a 3BHK, your undivided share of land in the building would be-
1,500/175,000 x 40,000 = 340 sq ft
- For a 2BHK, the undivided share of land in the building would be-
1,000/175,000 x 40,000 = 228 sq ft
- For a 1BHK, the undivided share of land in the building would be-
500/175,000 x 40,000 = 114 sq ft
Why Is The UDS Share Calculation Important ?
Below are some of the reasons why the UDS share calculation is important:
- It Is Your Right- The value of your home is largely determined by your undivided piece of land in an apartment complex, it goes without saying that the sale must be clearly stated in the builder-buyers agreement. If your calculations differ from the builders calculation, you have the right to question him about it and get the error corrected.
- Defines Legality Of The Building- The legality of a residential building is also determined by whether UDS meets with the developer’s FSI (floor space index). An examination of your undivided portion of land in such detail would reveal a building’s illegality.
- Criteria To Get Home Loan- If you apply for a home loan, the bank will check for the UDS before approving your application. If you’re buying a resale property, they will look for your housing society’s share certificate, as well as other paperwork, to complete your home loan application.
- Important Document For Property Registration- When you go to the sub registrar’s office to register your property, the officials will inspect your undivided shares certificate.
- The Future Of The Flat Depends On UDS Certificate- In the event of a natural disaster, the owner of the flat will be compensated based on the undivided shares certificate. This is also applicable if the government decides to buy the land and demolish the building for any reason, or even if the building is taken up for renovation.
The UDS should be mentioned in your purchase agreement. If it isn’t specified, you can check with the builder. If the UDS provided and the UDS mentioned in the agreement differ, be sure to specify before registering the document. It is also important to note that in co-operative housing societies, each individual has an equal UDS, irrespective of the size of their unit.