While buying a property there are various terms you might have come across. One of them is Undivided Share of Land. But what is an undivided share of land? When you buy a property, you don't just buy the flat where you will reside, you also buy a proportionate share of land on the plot in which your apartment complex is built. A portion of land is set aside and allocated in your name on the plot on which the entire property has been constructed, this land is called Undivided Share of Land. UDS is usually mentioned in the sale agreement, if it is not, you must confirm it with the builder before registration. Banks usually check undivided share of land in your name while processing home loans.Knowing UDS is important because this is the share of land which has an appreciated value over the years whereas, the flat or apartment you own sees depreciation due to usage over the years.If the government announces any redevelopment plans on the plot where you own the property, you will be eligible to get compensation for the undivided share of land in your name.As far as I know there is no minimum undivided share of land in apartments. It is calculated using a formula UDS = Your apartment’s super built up area / Sum of all apartments super built up area x total areaLet us have a look at an example for better understanding.Assume that a building has 5 flats of 1000 sq ft each on a land of 1800 sq ft. and you own 1 flat of them.UDS = 1000 / 5000 x 1800 sq ft.UDS = 360 sq ft.
Real estate investment is done not only for the purpose of staying in your own property but also for the sake of investment returns. Property price drops, as we all know. How does a property's value increase over time? Because you have an Undivided Share of Land or UDS. We will see what is an undivided share in land (UDS).
UDS in real estate:
When you purchase an apartment in a residential area or a house in a private residence, you gain ownership of an apartment or a separate property that is valued at a certain sum. Have you ever wondered who owns the property on which the entire place is built? It is undoubtedly purchased by the development company, who then creates the project. But what happens to the land when the units or homes are transferred to your name? It is the buyers' property. The individual share of land owned by each buyer of a flat/house in the overall land area on which the entire building is built is known as the undivided share of land.
Undivided share of land calculator:
I have calculated the undivided share of land using a simple method. I have computed it by multiplying the total land area by the size of each separate apartment and dividing the result by the total area of the property's apartments.Worried about your land valuation? Let me guide you on that. Suppose you bought a two-bedroom flat on a 2,000-square-foot block of land with five identical flats. In this case, every flat owner will receive an undivided portion of 400 square feet. Your UDS will be related to the size of your flat if your building includes a variety of units.
What is the minimum undivided share of land in apartments?
From what I know, there is no minimum undivided share of land in flats that I am aware of. I got to know about this fact when I read the legal facts about the undivided share of land. A formula is used to calculate it.UDS = Super built-up area of each unit / total super built-up area of all apartments * total land area
So I own a 3BHK flat in a building with 100 units, 50 of which are 1BHKs, 30 of 2BHKs, and 20 of 3BHKs, with a total land area of 30,000 sq ft. 1 BHK apartment is 600 square feet, 2 BHK apartment is 900 square feet, and a 3 BHK apartment is 1200 square feet.
As a result, the society's entire land area would be(50×600) + (30×900) + (20×1200) = 81000 sq ft.
So, for a 3 BHK apartment, my undivided share of the building's land would be 1200/81000 x 30,000 = 444 square feet.
My undivided share of land in a 2 BHK apartment would be 900/81000 x 30,000 = 333 square feet.
The undivided share of land in my one-bedroom apartment would be 600/81000 x 30,000 = 222 square feet.
An undivided share of land is the part of the land you get as a property owner when you purchase a property. When you're planning to live in a house or a building, the size of the plot of land becomes important. Because your undivided share defines your ownership of the property in situations like the things listed below:
While the structure loses value in the long run, the value of a flat or a house rises simply. Because the land on which it is situated is becoming worth more money.
Any purchase you make in a luxurious or superior property will be worthless without an undivided share in apartment.
When a structure is completely destroyed by a natural disaster such as an earthquake or flood and rewards need to be obtained
The property is subjected to renovation.
When the government seizes the land for infrastructural development.
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What is undivided share of land?
Mamta Kulbhushan
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March 17, 2021
2021-03-17T16:34:59+00:00 2021-07-23T17:44:10+00:00Comment
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