Undivided Share of Land: Exploring Ownership in Residential Complexes

The undivided share of land is referred to as land or apartment owned by a resident. The purchaser of an apartment in a residential complex has an undivided share of the land on the plot on which the entire building is built. The land will belong to every flat constructed on that specific plot, but there won't be any clearly defined boundaries. The price of the land and the cost of the building make up the two main parts of the price of an apartment. The price of the undivided portion of land in the structure is the cost of the land.
The property owners would receive compensation based on their undivided share of land (UDS) they own in their name after some time when the building is redeveloped, or the government buys and demolishes it.

What Does an Undivided Share of Land Mean?

The land that an apartment dweller owns includes an undivided share of land. The apartment in this instance is built on the same plot as the building. Although there won’t be any clearly defined boundaries for the land, it will have an apartment share. If the structure is demolished and rebuilt or the government buys the land. The Undivided Share of land will determine the compensation for the landowner. As a result, it refers to the space in the apartment complex. 

Apartment building buyers purchase more than just the building: they also acquire a portion of the land on which the building is situated. The term “homebuyer’s undivided part in the land” refers to this ownership of land (USL). This is why the value of a property like an apartment unit rises over time even while the building ages and becomes worse every day.

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To define “Undivided Share of Land,” or UDS as most commonly known, one acquires an undivided portion of the land when an individual buys a piece of property. In essence, when you purchase an apartment, you are purchasing two things:

● Determine the cost of the structure: The structure in which you live.

● Determine the cost of land: The relative amount of the land on which the entire property is built.

Before investing, buyers should be acutely aware that the value of a unit in a housing society is determined by their undivided share and have a thorough understanding of this.

Things to Consider While Investing in an Undivided Share of Common Property

Here are some things you should make sure to keep in your mind while investing in an undivided share of common property or purchasing one:-

• UDS must be included in your sale agreement. Without any notice, get in touch with your dealer or seller.
• Check for understanding from the relevant party if the document contains references to USD, but the actual UDS differs.
• Banks must UDS while submitting a Home Loan application. Therefore, before applying, the correct information must be maintained.
• The bank will require the housing society’s share certificate if you apply for a loan on a resale property.
• The sub-registrar will examine the share certificate at the time of property registration.
• Each member of a cooperative housing society has an equal Undivided Share.
• Buyers of homes should be aware that prices are always subject to appreciation, which drives up land costs.
• Due to depreciation, the structure’s price lowers as it loses value.
• It should be observed that the total UDS is increased if the owner has parking in addition to the flat. The proprietor values this region highly.
• The landowner should see that this is added to the owner’s name by the developer, agent, or seller.

Therefore, these measures can help you continue estimating the land you own when you purchase your next house or if you intend to buy an apartment. Sometimes we are not familiar with such legalese, but the selling of the undivided share of the property has been made simple. 

How to calculate the undivided share? 

A straightforward formula can be used to compute UDS:

-Divide the figure by the combined area of all the units in the project by multiplying the total amount of land by the size of each apartment.

-Total land area / Super built-up area of each apartment / Total built-up area of each apartment.

Undivided Share of Land Calculation Let's say you purchased a 2BHK apartment with five identical units on a 1,000 sq ft piece of land. Each homeowner will have 200 square feet in this situation for UDS.

The size of your UDS would be proportionate to that of your apartment, albeit if your complex contains a variety of different types of units.

A Hypothetical example of a Sale Deed for an Undivided Share of Land

Assume you live in a building with 200 apartments, 100 of which are 1BHKs, 50 of which are 2BHKs, and 50 of which are 3BHKs. There are 40,000 square feet of land in all. A 1BHK flat has a construction size of 500 square feet, a 2BHK is 1,000 square feet, and a 3BHK is 1500 square feet.

As a result, the society's total land area would be as follows:

(100×500) + (50×1000) + (50×1500) = 1,75,000 sq. ft.

Therefore, for a 3BHK in the complex, the undivided share of the land would be:

1,500/175,000 x 40,000 = 340 sq. feet.

The UDS for an individual who has a 2BHK in the building would be:

1,000/175,000 x 40,000 = 228 sq. feet

The UDS would be the following for an individual who has a 1BHK in the complex:

500/175,000 x 40,000 = 114 sq. feet.

Why is this Calculation of Undivided Share so Important?

It goes without saying that the most care must be taken to ensure all the undivided share land laws that the sale is referenced in the builder-buyers agreement because:

1.  It is your right: Since the value of your property is primarily determined by your undivided share in land in a housing complex, it becomes unnecessary to state that in the agreement.

2. Determines the structure's legality: Whether UDS complies with the FSI (floor space index) granted to the developer determines whether a housing project is legal.

3. It is a requirement to get a mortgage: The bank will check the UDS before approving your credit if you want a transfer of an undivided share in the land. To complete your request for a house loan, they will look for the certificate from your housing association and other documentation if you are purchasing a resale property.

4. The lives depend on it: A buyer is rewarded based on their UDS in the event of a natural disaster. The same holds true if, for some reason, the government chooses to facilitate the sale of an undivided share in agricultural land or redevelop the project to acquire the site and demolish the project.

Thus, it must be clear that the piece of land is an undivided share of land, so you have to keep in mind that you should refer to the UDS in your agreement for sale. If it isn't mentioned, you can ask the builder. Also, Before registering the paper, ensure the UDS promised, and those listed in the agreement are the same. Banks would review the UDS when accepting home loan applications. They will look for the shares from your housing scheme if you buy a resale property. The sub-registrar would also examine the share certificate during the property registration. In cooperative housing organisations, regardless of the size of their unit, each member typically has an equal UDS. If you need legal and financial help in any UDS transaction, you must consult the experts at NoBroker. If interested, please leave a comment below this blog, our executive will be in touch with you soon.

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