Buying an apartment? The undivided share of land allotted to you will actually determine your property’s worth many years down the line. We tell you how.
Buying a new house requires a holistic approach, irrespective of whether you need a Home Loan or not. From choosing the right location and size to the right developer, there are a lot of factors that a buyer needs to address to get the perfect property.
Many buyers often decide on their purchase based on the built-up area offered and the additional amenities attached to the flat. However, the most important factor in any real estate purchase, which is the actual land that one will own, is often overlooked. This is more so in the case of apartments.
When you purchase an apartment, a certain value of the land will be allocated in your name. This is known as ‘undivided land share’. Let us take a look at this important aspect of real estate, its significance, and legal importance.
Understanding Undivided Share of Land (UDS)
When you buy an apartment, you are technically buying two things. The first component is the constructed part of the building where the owners will actually reside, while the second is a proportionate share of the land on which the property is built. The latter share of land allotted to the flat buyer is known as an undivided land share or UDS.
Significance of UDS
The building itself isn’t exactly a great investment because the value of the constructed area depreciates. The older the construction, the lower the market value of the property. On the other hand, the prices of land keep escalating over time and may offer substantial returns for the landowner.
This appreciation in the overall value of any property is due to the increase in the land rate and not the constructed area. Essentially, it is the undivided land share allotted in accordance with the built-up area of the apartment that determines the future monetary value of the property. In case the landowner has no undivided land share, he or she may not be able to sell the property or enjoy good returns on the investment.
Additional Reading: Home Loan Document Checklist
Legal Implications of UDS
The legal implication of undivided land share makes it an intrinsic part of any real estate deal. Suppose the building in which you reside is to be demolished for reconstruction ten years down the line or comes under a government acquisition project and made available for demolition, the compensation administered to the flat owner will depend on the percentage of the undivided land share in the property.
The sum of all the undivided shares for each apartment owner must be proportionate to the area of the land in which the apartment has been constructed. In case of co-operative housing societies, the UDS must legally be in the name of the society since the flat owners are the shareholders of the society.
UDS Calculation
UDS calculation is determined by a simple formula. It can be calculated by multiplying the total land area with the size of the individual apartment and dividing the result by the total area of all apartments in the project.
Illustration for UDS Calculation
Let us assume 5 equally sized apartments of 1,000 square feet are built on land that measures 3,500 square feet. The UDS can be calculated by multiplying the total land area with the size of the individual apartment (3,500*1,000) in this case and dividing the result by the sum of areas of all apartments which is 1,000*5=5,000.
Hence UDS =1,000*3,500/5,000 =700 square feet.
Additional Reading: Avoid Real Estate Scams To Reap Rich Returns
UDS and Ownership of Parking Space
Some real estate builders and developers have been guilty in the past of selling open or stilt car parking areas to individual house owners. As per Indian law, an open car parking can only be sold as part of a common area and cannot be legally included as part of the floor area for individual apartments.
Checking Validity of UDS while Purchasing Property
While paying an advance for any property, make sure the builder or the seller provides you with the agreement copy. The agreement copy between the builder and the seller holds all the important details of the property in question including the details of the undivided share of land.
There is usually a dedicated section in the agreement that gives the details regarding the UDS share, which is often mentioned in either percentage terms (for example 0.75%) or in exact square feet terms. Make sure the agreement clearly mentions your undivided share in the land. The same figure should be mentioned in the title deed when the registration is done.
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Hi Abhishek,
Our apartment is built on 2400 (40*60) plot. There are 8 homes (1100 sq feet each).
Ground floor is for parking and flats start from 1st floor.. The builder is offering 240 sq feet UDS.
Please let me know how much UDS i should get.
when asked why its 2400 instead of 300, Reason given is – setbacks and parking are left, so less UDS.
Please let me know what should be the actual UDS.
Locality is govt layout, On left and right side of the apartment, there are 2 independent houses (3 floors each).
Please help
Regards
Sweta
Hi Sweta,
While we do provide general tips and advice on personal finance, we will not be able to provide guidance on specific queries. We would love to help but due to the specific nature of your question, we suggest that you get legal counsel or consult your financial advisor sort this out.
Cheers,
Team BankBazaar
Thanks for a very informative article.
Shall be grateful for your guidance:-
I have bought a flat in a residential scheme in a township constructed under Gujarat Town Planning Act in Ahmeabad.
The sale deed says that flat AND undivided portion of common land stand transferred to me BUT it does not specify the area.
Builder had registered a Coopeative Housing SERVICE Society for all flats in the scheme.
I was under impression that the ownership of land shall be conveyed to the Society through conveyance deed.
But the builder says this is not possible now as undivided portion of land ( though arae not specified) has already been transferre to me.
KINDLY SUGGEST A WAY OUT TO GET OWNERSHIP OF COMMON LAND TO BE CONVEYED TO THE HOUSING SOCIETY.
Hi Rbhat, While we do provide general tips and advice on personal finance, we will not be able to provide guidance on specific queries. We would love to help but due to the specific nature of your question, we suggest that you get legal counsel or consult your financial advisor for more information about this.
i would like to know about a apartment . there are 6 apartments on a land of 4800 sq feets, with two wings in apartment a and b . both having 3 apartments in each wing . i have already purchase 2 apartments of a wing apartment. i am purchasing even the third apartment of the a wing. thus i shall be having complete a wing of the apartment.
i would like to know in further i like to demolish a wing of apartment as it is owned by me completely and construct my way flat or a home. i hope there shall not be any legal problem for it,
Dear Arvind,
Thanks for writing to us. Demolishing and rebuilding structures might require permission from the authorities. Please contact the relevant authorities before you go ahead with this. You can also seek a legal opinion to help you understand the rules and regulations better.
Cheers,
Team BankBazaar
can a flat be sold without transferring any undivided share of land? does there any rule exists for this?
pls clarify.
Dear Shailesh,
Thanks for writing to us. The flat is situated on the undivided share of land. So, it is not possible to sell the flat alone.
Cheers,
Team BankBazaar
Hello!
I am an owner of a 1150 sqft apartment in Bangalore. The builder from whom I purchased has specified a dedicated parking space for me in the ground floor. Is that my UDS ? Or is it only applicable when Iam assessing the FSI?
Thanks
Hi Akash,
Thanks for getting in touch. Only an open car parking space is part of the undivided share of land. Covered car parking is separate from this and is generally sold separately by builders.
Cheers,
Team BankBazaar
I want to purchase an office of 1608 sft in a Commercial Complex . It is 30+ years old with two car parking separately purchased by the Owner . In the earlier sale agreement nothing is mentioned about Undivided Share of Land but the total land area is mentioned as 2200 sq yds. If I purchase the property now and mentions the Undivided Share of Land as 60 sq yds. i.e, by dividing the total area then I would be eligible for the Undivided Share of Land of 60 sq yds. or because it is not mentioned in the earlier document hence only the constructed part of the building would be under my name .
Hi Nitin,
If the earlier sale agreement is silent about the undivided share in the land, it is presumed that owners of the constructed area have the proportionate undivided share. In the new sale agreement it can always be stated that the owners will have the proportionate undivided share in the land of the constructed area.
Cheers,
Team BankBazaar
please reply for my queries
Hi Chandrasekaran,
We’d love to help. Please let us know what your queries are.
Cheers,
Team BankBazaar
we have uds equal 5 flat owners. but the carpet area differs, that is 1 owners have 1400sq.ft, 2 owners have 1000 sqft, 1 owner 850 and 1 owners have 600 sqft. now if we demolish and construct again what would be the carpet area for all of us according to rules in chennai. total land area is 3600 sqft. 30 yrs old building.
Hi Chandrasekaran,
You will need to contact your legal counsel for help with this issue.
Cheers,
Team BankBazaar
Dear Arvind,
Your above article was excellent. Thanks a lot
kindly educate me pl. If i had a JDA with A builder & he has constructed a building & given me the initially agrred portion of super built up area to me along with UDS and selling rest to his client Which belonged to his shatre by Sale Deeds & accepted Sale considerations by himself. But my portion is only held by me under JDA & subsequent Deed of Declaration, do i need the Developer to Register it in my name my portion of the Bult up apartmens. Can i not sell them later on the back ground of JDA Joint Development Agreement) or DOD. Deed of DEclaratiob. Pl. advise.
Hi Victor,
Thank you for the query. As your concern is very specific, we suggest that you get a legal opinion regarding this issue. We’d be glad to help with any other general query.
Cheers,
Team BankBazaar
Dear Abhishek Dwivedi,
Let me first apologise for the name i addressed as “ARAVIND” I dopnot know where it came from. but i ment it to you. All your wrtings are brilliant. About my going for a SALE DEED with my builder builder, need not be a complicated issue for you to comment as I understand if I draft a JDA & SIGN along with my DEvelope , IT IS A kind of DEEMED SALE DEED of doc. How can my land be sold to me by the Developer back to me again , via a Sale Deed but with a new structure on it & only certain Super built up area is assigned to me already through a JDA. Why a separate Registration again by the Developer to the Land owner i wonder.
Hi Victor,
We only give general financial advice to our readers. We are sorry, we are unable to give specific advice on any matter. Request you to speak with your lawyer regarding this.
Cheers,
Team BankBazaar
Hello,
I and another two of my friends purchased single plot of 350 sqyds from Urban development authority mentioning 3 names and the sale deed also reflects the same mentioning 3 names, here i have two doubts
1st is that i have approached for few banks and they replied that it is not possible to give loan to single property with 3 names and the 2nd is that when UDA itself is mentioning 3 names does it mean 3 propotionate share of the land taken by us or else the individual share will be metioned, if it is the case is there a possibilty of getting loan from the bank either individually or as combined. I hope u will clarify my confusion.
Hi Swaroop,
The undivided share of land will be in the names of the individual owners. Please contact your legal counsel for more information about this.
Cheers,
Team BankBazaar
Hi My Name is Sampath Daida, thanks for the above e info. I tried to buy a flat which is 15 years old, In that apartment there are 60 flats all of same size and total land is around 2190 Sr yards. but when i see the individual documents every flat is allotted only 13.15 Sq yards as Un divided share of Land. and rest is not mentioned any where. what kind of Legal issues may rise if the we go for redevelopment in next 10 years. Weather Builder holds any share , Technically is it possible.
Hi Sampath,
Thank you for visiting our blog. Given the very specific nature of your question, we suggest getting legal counsel. Your counsel will ask you pertinent questions regarding the property and help address your concerns.
Cheers,
Team BankBazaar
i have purchased flat from a builder.there are 11 flats.in the builder’s brochure each flats owners have their undivided shares and building flat construction plinth area. as per plan and as per broucher the building was contradicted. while selling the unsold flats, the builder cum owner willingly sold the undivided shares less in sq ft by registering the documents.(.original undivided shares was 705 sq.ft but register sale deed is for 605 sq ft. but the flat area is same for 705 Sq ft undivided shares. but now the builder cum owner claims that 100 sq ft is his own undivided shares.like this 200 sq ft were left from the total area of the flat..this fraud came to light while constructing a commercial complex in the car parking area which is common area for that building.the said two flat owners also involving this fraudulent action. there was no commercial complex in the approved plan.please advice what kind of action to be taken.
Hi Jaganathan,
We would love to help you, but due to the specific nature of your query, we suggest that you contact your legal counsel for help with this. It is best if you do it along with other flat owners.
Cheers,
Team BankBazaar
Dear Sir,
I want to avail a Homer Loan for constructing a 1st floor of a House, owned by my Parents (My Father & My Mother). My Question is weather, can I be able to buy only the 1st Floor along with 50% UDS legally and construct on the same floor, for which I am availing a Home Loan? Because i dont want to transfer the full property in my name
Please provide your necessary advice in this regards.
Hi Mohinish,
As your question is specific in nature, we suggest you get legal counsel for help with this. If you would like to apply for a Home Loan, you can check out some offers here.
Cheers,
Team BankBazaar
Hi,
My question is related to the area which is to be used for calculating the UDS. Now when the builder get’s the society approved, for calculating FAR for construction, he uses the whole land which includes open park area, Parking area and other common areas outside the building, but when he transfers UDS to the buyer, only uses the area on which that particular building is constructed. As per regulations s this a fair way of transferring UDS to the the flat buyers.
Hi Vikrant,
This is a practice followed by several builders. We suggest that you get in touch with your legal counsel to understand what the right method to calculate the undivided share.
Cheers,
Team BankBazaar
Hi,
nice article on UDS.
i have a question. I am buying a 1000 sq feet block in a commercial complex on first floor in a building. The ground floor belongs to the owner of the building. i am buying it from an another person to whom the owner had sold that block 4 years back. There is open terrace above my block, but it has potential FSI for more floors (which is legally of the original owner). Does UDS apply here? if yes, how?
Hi Ravindra, We’re sorry, we do not give individual financial advice. We suggest that you get in touch with your legal counsel for help with this matter.
Dear Sir,
I want to purchase a resale flat 6 yrs old. In the deed of flat owner there is no mention of 2 wheeler parking in sheduled section, but “….. together with proportionate undiveded share of land with right of easement ” is mentioned. My question is – can I use this UDS as my parking of 2 wheeler legally or not..
Thanking you
Prem Nath Das
Hi Prem Nath Das,
While we do provide general tips and advice on personal finance, we will not be able to provide guidance on specific queries. We would love to help but due to the specific nature of your question, we suggest that you consult your legal advisor for more information on this.
I have 3 apartments in Bangalore that were obtained after the house was demolished and built into apartments. When I went to sell the apartment I was told that my title deeds do not show share of undivided land. How can I fix the situation?
Hi Chakravarti,
We would love to help you but since your question is specific in nature, we suggest that you contact your legal counsel for help.
Cheers,
Team BankBazaar
Sir,
Whether any law is there regarding plinth area is proportinate to UDS?
Hi narayanayan,
We would love to help you but since your query is specific in nature, we suggest that you get legal help for more information about this.
Cheers,
Team BankBazaar
The question is whether the Transfer of Property Act 1882 recognise the concept of UDS? Can mutations, divisions or partitions be done in the land survey records OR will the UDS be just a notional transfer, whilst the builder retains title of land? Also, if the property has to be redeveloped, how can we proceed even if a single such owner objects? In apartment complexes, it is best that the land is conveyed to the Society or Association. Would appreciate your feedback especially with implementation of RERA. Thanks.
Hi Capt. Charles,
We would love to help you, but since the rules regarding this are not very clear, we suggest that you take the help of your legal counsel.
Cheers,
Team BankBazaar
Dear Team BankBazaar,
I purchased 2 bhk flat in CasaGrand Hoody. Now in agreement copy thy didn’t mentioned UDS -Undivided share land.
When I inquired about this Casagrand executive replies as per new RERA act guild lines its not require to mension UDS in agreement. They told, at the time of possession we will provide letter to authority and to me. In that letter UDS will be mention.
Please guide me – as per RERA guidelines the UDS should be mentioned in agreement ?
Kind Regards
Ramneesh
Hi Ramneesh, As far as we know, there are no such rules under RERA. We suggest that you contact your legal counsel for help. Cheers, Team BankBazaar
Thank you very much
Hi Ramneesh, You’re welcome. Cheers, Team BankBazaar
Does GO 168 by GHMC impact UDS. Initiall AoS has 37Sq.Yds. Now while registration its changed to 27 Sq.Yds.
Is this legal??
Hi Naga, We would love to help you but since your question is specific in nature, we suggest that you get the help of your legal counsel. Cheers, Team BankBazaar
We have 132 flats in our colony. All the sale deed shows land cost as 41,400 but we have two types of flat with different size. UDS also not mentioned in the sale deed. Now we want to demolish and re construct . My claim is having paid uniform land cost reconstructed built area should be same.. pl clarify
Hi V.Gopal,
Since your query is specific in nature, please get the help of your legal counsel.
Cheers,
Team BankBazaar
in our sale deed document the land cost mentioned as 41,400/- for all the 132 flat owners without mentioning the UDS share but we have two types of flats with different dimension . The age of our building is 35 years and we want to demolish and re-construct. Now how will our share of UDS will be calculated.
Hi Vedamgopal,
We’d suggest you consult a reputed CA or financial advisor for help on this.
Cheers,
Team BankBazaar
In our colony we have 132 flats with two sizes but all our sale deed show uniform land cost without mentioning the UDS. Now we are planning to demolish and reconstruct , how the UDS share will be calculated now.
Hi Vedamgopal,
We’d suggest you consult a reputed CA or financial advisor for help on this.
Cheers,
Team BankBazaar
Dear Experts,
I have a doubt about the UDS (Undivided Share) for an Apartment.
In our Building, there are a total of 8 Apartments. But the Buildinder constructed one penthouse which is UNAUTHORIZED.. He sold the UNAUTHORIZED Pent House to an individual. (Now the individual has applied for Regularization of unauthorized construction).
My Doubts are:-
(1) is the UDS (undivided share LEGALLY applicable for the unauthorized constructions (penthouse)?
(2) If the GOVT. regularize the unauthorized penthouse, the PENTHOUSE owner is legally authorized for UDS (Undivided portion)?
Please Clarify
—
Chinna Reddy CM
Hi Chinna Reddy,
If the construction is illegal, the owner may not be entitled to undivided land share. However, we suggest you contact your legal counsel for help.
Cheers,
Team BankBazaar
Dear Sir,
I have a query of Property Deed between 3 person’s mention of “1/3rd undivided share each” in Relinquishment Deed.
1st Query :- If 1st partner or two partner’s both out of 3 partner’s want to sell or transfer their rights/ portion to someone else.
Then, They ( two partner’s both out of 3 partner’s )have to take any kind of permission of 3rd Partner or Not ( under “1/3rd undivided share each Mention in Relinquishment Deed”?
2nd Query :- What is the Process of Relinquishment Deed and how much it take time ?
3rd Query :- What the precautions taken and is any statement have to be add ?
Hi Ashutosh,
We would love to help but since your questions are specific in nature, we suggest that you take the help of your legal counsel.
Cheers,
Team BankBazaar
Is uds applicable on commercial building
Hi Ankur Agarwal,
Thanks for getting in touch. While we do provide general tips and advice on personal finance, we will not be able to provide guidance on specific queries. We would love to help but due to the specific nature of your question, we suggest that you consult your financial advisor to sort this out.
Cheers,
Team BankBazaar
we are buying a row house which is in UDS 1252 sqft part of 7200 sqft land along with 6 other house .The house is independent duplex without any common wall and each house has 5 feet enough space separated from other house .each house has a separate plan .
1.can we demolish and rebuild the house in future
2. can we have a separate patta for the UDS 1252 or 1100 sqft of land of my building .
Hey Ram!
Thanks for stopping by. This will depend on the contract that you have signed with the builder. If it is within a gated community, you may not be allowed to rebuild the house. We suggest that you check the terms of your contract for the details. The UDS might remain the same even if you rebuild the house. Hope this helps!
Cheers,
Team BankBazaar
If somebody purchases a flat in a three storey building and get UDS of 33%. what will happen to his UDS when another floor is constructed by the owner of third floor who is having the roof rights.
Hi Mahesh,
Given the specific nature of your question, we advise you to get in touch with a financial expert regarding this query.
Cheers,
Team BankBazaar