Undivided Share of land: UDS meaning, calculation and use in flats explained

[ecis2016.org] Undivided share is a part of the land held by the buyer of an apartment in a residential complex on which the entire structure is constructed

When buying an apartment, there are certain terminologies, which home buyers may be completely unaware of. One such term is the undivided share (UDS). The UDS has a major role to play when buying a home in a residential complex or a large project.

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What is undivided share or UDS?

Undivided share is a part of land held by the buyer of the apartment in a residential complex on a plot on which the entire structure is constructed. Each and every flat built on that particular plot will have a share in the land but will not have any defined boundaries.

Importance of UDS

The cost of an apartment usually has two major components – cost of the structure and cost of the land. The cost of land is the price of the undivided share of land in the building. After several years, when the building undergoes redevelopment or the government acquires it and brings it down, the property owners will get compensation on the basis of their undivided share of land (UDS), which they have on their name.

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Home buyers should know that the price appreciation is actually the increase in land value only, as the constructed structure loses its value with time due to depreciation. This is the reason why experts say that the amount of land you own would matter in future. An informed buyer should always inquire about the UDS he gets with the flat.

Home buyers should also know that for the same reason, car parking is very valuable. If the builder is offering you a dedicated car park, the car park land is added to your total UDS. However, for this, the buyer has to ensure that the developer documents the car park in the owner’s name.

UDS calculation

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UDS can be calculated by following a simple formula:

Multiply the total land area with the size of the individual apartment and divide the result by the total area of all apartments in the project.

Individual apartment super built-up area / Sum of all apartment’s super built-up area x Total land area

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Example for UDS calculation

Suppose you have invested in a 2BHK flat, built on a land of 1,000 sq ft which has five units, each measuring the same. In this case, each owner will have 200 sq ft as UDS.

However, if your complex has different kinds of units, your UDS will be proportional to the size of your apartment. Here is the illustration:

Suppose you have a 3BHK flat in a complex that has a total of 200 flats, out of which, 100 are 1BHKs, 50 are 2BHKs and 50 are 3BHKs. The total land area is 40,000 sq ft.

The constructed area of a 1BHK flat is 500 sq ft, 2BHK is 1,000 sq ft, and 3BHK is 1500 sq ft.

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Therefore, the total land area of the society would be:

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

So, your undivided share of land (for a 3BHK) in the complex would be:

1,500/175,000 x 40,000 = 340 sq ft

For a person who owns a 2BHK in the complex, the UDS would be:

1,000/175,000 x 40,000 = 228 sq ft

For a person who owns a 1BHK in the complex, the UDS would be:

500/175,000 x 40,000 = 114 sq ft

Things you should know about UDS

• Your agreement for sale should mention the UDS. You can ask the builder, if it is not mentioned.
• If the UDS promised and mentioned in the agreement are different, clarify the same, before registering the document.
• For home loan applicants, banks will check the UDS while approving your loan. If you are buying a resale property, they will check for the share certificate from your housing society.
• During the property registration, as well, the sub-registrar would check the share certificate.
• Usually in co-operative housing societies, each member has an equal UDS, irrespective of the size of their unit.

FAQs

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