Table of Content
What is Undivided share of land?
The ownership portion of common facilities and land in multi-unit buildings, including housing societies or apartments in Chennai or any other city, is frequently referred to as the “undivided share of land,” or UDS. UDS is the proportionate fraction of the total land and common spaces allotted to a unit, such as an apartment or house, when it is a part of a larger development.
It represents the unit owner’s rights and entitlements with regard to the undivided portion of the property that the entire development is constructed on. UDS, which shows the degree of the unit owner’s ownership rights over the common spaces, is usually stated as a percentage or a fraction. These places might include parking lots, gardens, lobbies, stairways, corridors, and other common areas used by all inhabitants.
Importance of Undivided Share of Land
1. Lawful Possession
Your legal ownership of the property is represented by your undivided part of land, which is essential for any legal transactions concerning the property. In order to settle property disputes and confirm ownership, UDS guarantees that you have a clear title to a section of the land. UDS reduces possible disputes by making it easier to determine each heir’s or new owner’s precise portion in the case of inheritance or property transfer. Furthermore, having a recorded UDS offers legal protection as it proves your ownership interest in the property, which is crucial in court cases or disagreements with the developer or other apartment owners.
2. Authority Over Maintenance of Society
The society’s maintenance charge is set according to the UDS. The maintenance of the community, including the common spaces that are shared by all members, is funded in part by this money. In India, UDS gives an owner the ability to vote in the housing complex and specifies their rights and obligations there. A person who has a higher UDS has greater influence over choices like society upkeep. The society’s judgment will be final in the event that members disagree over how to use the UDS land.
3. Potential for Redevelopment
Your UDS establishes your claim in the new construction in the event that the building is renovated, which may have a substantial financial impact. Developers use each apartment owner’s UDS to determine their entitlement during redevelopment; hence, a higher UDS may translate into a larger or more valuable new unit. Those with a higher UDS may be compensated more generously if compensation is provided in lieu of a new dwelling.
Additionally, you can negotiate better conditions, such a larger new unit, better facilities, or higher cash compensation, during redevelopment talks if you have a higher UDS. A high UDS property in a desirable location has the potential for renovation, which might result in a significant increase in value when the project is finished.
4. Value at Resale
Because a higher UDS usually corresponds to a greater resale value, the UDS plays a role in determining the worth of your flat. Because they provide a larger portion of the underlying land, properties with a higher UDS are seen as more valuable, drawing in more purchasers and higher bids. Furthermore, because land often increases in value over time, resulting in large cash gains upon sale, a greater UDS offers superior investment security. In a competitive real estate market, an apartment with a higher UDS has a comparative advantage over similar properties with a lower UDS, making it more attractive to prospective buyers.
Impacts of UDS in Property Transactions
An important factor in UDS in real estate is the undivided share of land. It influences a number of real estate transactional factors, such as:
- Financial Support: UDS is taken into account by banks and other financial organizations when granting home loans.
- Impact on Stamp Duty and Registration: Your UDS affects how much registration and stamp duty will cost.
- Inheritance Rights: By streamlining the property inheritance procedure, UDS guarantees that your heirs will get their portion.
Factors That Impact the UDS Allocation
- A larger percentage of UDS is given to apartments with more built-up space, such a 3BHK apartment, than to apartments with less space, like a 1BHK apartment.
- The UDS will be impacted by the land area of the site where the apartment complex is being built. A larger number of UDS are provided for each apartment on larger land parcels.
- Since all owners share the total land, more apartments in the complex lower the UDS for each apartment.
- Because land is distributed more widely among owners in high-density projects, the UDS per unit may be lower in high-rise buildings than in low-rise ones.
- Since more land is utilized for shared uses, large public areas like gardens or a clubhouse may require lower individual UDS.
- Local zoning laws or government regulations may mandate that each apartment have a minimum UDS, which might affect how the computation is carried out.
- The distribution may also be influenced by the terms of the developer-consumer agreement. These projects might include luxury residences or mixed complexes.
Steps to Calculate UDS or Undivided Share of Land
Usually, apartments or villas in Chennai or any other cities with common areas are used to compute UDS. UDS is equal to the super built-up area of each apartment divided by the sum of the super built-up areas of all apartments times the total land area.
Based on the size of their apartments, this method guarantees that each apartment owner receives an equitable portion of the property.
Assume that you are the owner of an apartment in Chennai with 800 square foot flat in a residential complex. The total super built-up area of the building is 50,000 square feet, and the total land area on which the structure is located is 20,000 square feet. You would apply the following calculation to find your UDS:
Undivided Share of Land = (800/50,000)*20,000
Undivided Share of Land = 320 sq ft.
Legal implications
An owner’s portion of the land and common spaces of a jointly held property is represented by the legal term “undivided share” (UDS) in real estate. In real estate deals, UDS is crucial because of the following reasons.
- In a multi-unit development, UDS specifies each owner’s rights and obligations.
- An owner’s UDS determines how much they will be compensated if their building is destroyed or taken over by the government.
- In cooperative housing organizations, an owner’s apartment space must correspond to the building’s land area.
- UDS aids in establishing a multi-unit development’s legal entity.
Frequently Asked Questions
1. Can I sell my share of UDS in a property?
Yes, you can sell your share of UDS in a property with a proper registered sale deed. However, it is implied that you must seek the consent of all the co-owners before selling your share.
2. What percentage is considered good for UDS?
In general, 30% of UDS is considered reasonable. However, with exclusive apartments in Chennai an UDS percentage of 50 is highly possible. It is significant to keep in mind that higher the UDS percentage will offer higher authority.
3. What are the benefits of owning UDS land?
Some of the significant benefits of owning UDS land includes legal ownership of the land, increased property value, higher potential for re-development, simplified property inheritance, increased transparency with enhanced safety, and better development potential.
4. How is UDS different from divided share in a property?
A building in an undivided co-ownership is held by all of the undivided co-owners, whereas in a divided ownership, the building is separated into different halves (private and communal).
5. Can I gift my UDS to someone else?
Yes, you can gift your share of UDS to someone else as long as they understand the usage of land and limitations.