Undivided Share of Land: All You Need to Know!
Undivided Share of Land (UDS) is an important aspect of property buying. It is essentially the UDS in accordance with the built up area of the apartment that determines the appreciation value of the property, says BS Nesar, Executive Director of Concorde Group. He shared his valuable insights on the significance of undivided share of land. Here are the excerpts of the discussion.
What are the three most important factors to keep in mind about Undivided Share of Land?
Undivided Share of Land (UDS) is always calculated on what? First thing one should know is that UDS is not on total land. For instance, if there is 2 acres of land, out of which some portion goes for road widening, the UDS will be just on the remaining land.
How is the UDS shared among the customers? UDS is determined by multiplying the total land area with the size of the individual apartment and dividing the result by sum of areas of all apartments combined in the project.
The third most important thing we can bring in is Transfer of Development Rights (in most states). Whatever extra a developer builds on the land, he has to buy TDR, which is nothing, just that you are buying rights for development. Post buying the right, let’s say, if you have rights to develop 2 lakh sq. ft. of area on which about 60,000 or 70,000 sq. ft. of area is added, then the UDS will on the entire area. A developer cannot leave TDR and then give UDS, since it is a part of the built up area they have an equivalent share.
When does one get to know about UDS? Which documents in particular should one check for the same?
The correct UDS can only be known when the total land area is completely planned and all the super built up area is calculated. You have to freeze on the total planning and no extra built up area can be added to the complex then you will get UDS. The document which shows the actual details of the land is the sale deed, from where the UDS can be known.
What is the importance of Undivided Share of Land? What If builder hasn’t given any?
Undivided Share of Land is a crucial component of property buying and one must claim it. Otherwise, in case of any calamity, you will not be able to justify the UDS you own.
If the builder has not given UDS, ask for it. And if the builder has not provided UDS, you should make sure that the builder is registering the UDS in your name. That is why two agreements are made- one construction agreement and the sale agreement. In the sale agreement, UDS is mentioned.
While selling or transforming a property is UDS mandatory?
While selling or transferring the property UDS is mandatory. There is no clause made by the government that you have to look at UDS, but for your individual safety it is recommended.
What are the legal implications of UDS?
As it is a part of you sale deed agreement, it is a legal identity. So, along with owning the apartment it also shows that you own a piece of the land.
Final word of caution.
Just look into your document to ensure that UDS has been included!
