Monday, 23 November 2015

UDS- Undivided Share of Land


What is UDS or undivided share of land in an apartment complex?
This is the right of  a flat owner  over  a part of the land on which an apartment complex is constructed which is not ear marked on the location.  The share of land has no specific boundaries in the total extent of land. The owner of a flat can only enjoy the right over the UDS along with other co- purchasers offlats in an apartment complex.

How to calculate the undivided share of land (UDS) ?
The UDS is calculated as – Individual apartment ‘s super built up area divided by the sum of all apartments’ super- built up area multiplied by Total land area. In other words the sum of all UDS will be equal to the total land area of the apartment complex.

For example – assuming a four flats in one apartment of equal sizes, of say 1000 sq.ft built up on an extent of land of (2400 sq ft (i.e., in a 60’ x 40’ site ). Here, two elements are involved namely the cost of construction of apartment (i.e, material, labour etc., and the other part is the UDS or the undivided share of land to each apartment owner. While buying the flats the buyers must ensure that the UDS is allotted and mentioned in  the Registered Sale Deed to avoid future complications.

In this case it calculated like this:-
UDS = 1000/4000x2400= 800 sq.foot which means each apartment buyer has got right over the this UDS in the total extent of land.

What is the importance of UDS?
Buying an apartment involves buying of UDS along with the super built up area of an apartment. As the time elapses the value of the built up area in apartment decreases whereas the value of the UDS will increase. Suppose, after 30-40 years the building becomes too old or becomes unusable due to natural calamities, the entire complex has to be demolished for redevelopment.  In that circumstance the owner of a flat will get a flat in the redeveloped project proportionate to the undivided share of land he actually owns. Also, the more the share of UDS the flat buyer will get more profit, as the land purchased today may appreciate in value by more than 50 to 60 times over a long period of time.

Whether a flat buyer can mortgage his (UDS) undivided share of land alone in an apartment complex?
No. The UDS alone cannot be mortgaged alone. As it is interlinked to the super built up area of flat in an apartment complex. However, a flat owner can mortgage his flat along with the UDS.

What is the difference between UDS and co-ownership?
Both are similar. All the apartment owners in a complex are entitled to UDS in the land area where the apartment complex is constructed. All the owners are considered as co-owners and have equal rights.

Where the builder has violated the Building plan , can a flat purchaser claim proportionate undivided share on FAR (Floor Area Ratio) ?
If the builder has violated the building plan and constructed extra flats, floors the purchaser of the flat will get lesser UDS share than proportionate his flat’s super built up area. Hence, the buyer of flat must be careful and check what is his undivided share of land and whether it matches with the FAR.

Whether a person can only buy undivided share of land of a flat in the apartment complex?
No. A person cannot buy only UDS in a flat. However, he can buy the same along with proportionate construction i.e, flat in the building . 

Why it is important to be very careful while buying flats?
Unlike,  buying independent houses the buying of flats is quite a different transaction. In buying flats the buyer will be a co-owner along with other owners in a complex. He, does not enjoy absolute right over the property like independent houses.


Further, to utilize maximum land space some of the builders violate building plans and construct illegal floors. At times the builders may allot a less land share (UDS) or they may not mention the land share in the sale agreement/ deed or even worse the builders themselves claim the land share. Hence, it is important to enquire what is the UDS in flat before buying and also get the land share mentioned in the sale agreement / deed. 

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