What is Undivided Share of land (UDS)

For most Indians, buying a house, a plot of land, or a flat is an important milestone. Many save up their hard-earned salary for this very purpose. For this, having the required knowledge is essential to avoid the chances of getting scammed and to evaluate all the options carefully. Buyers need to be aware of many concepts to make the right call to the best of their knowledge. One can start by reading up on essential terminologies.

UDS full form - (Undivided Share of land) is one such term that holds extreme importance in the context of buying a home in a residential complex. In this blog, you will learn about UDS in real estate, its importance, and its calculation.

What is UDS (Undivided Share of Land) in Real Estate?

It is very important for a homebuyer to understand UDS, meaning an undivided share of land, which is the share of land allocated to an individual when they buy a flat. There is no clearly demarcated boundary on the land for any individual. For example, suppose the flat or gated community is spread over an area of x acres.

Every apartment owner would have co-ownership over the entire region, the share of which will be mentioned in the deed.

What is The Importance of UDS?

Every homeowner is advised to gain a proper understanding of the UBS of his/her flat as it holds great importance.

• The appreciation of the value of the property is due to the appreciation of the land and not the building, and hence it is essential to understand the UDS of the flat before investing the money.
• In case of any natural calamity or demolition of the building, the compensation is decided based on an individual's undivided share of the land.
• UDS plays a crucial role in the reselling of land. The price of the apartment is determined by the cost of the structure plus the cost of land. A higher UDS would lead to faster property appreciation as the land appreciates quickly.

How To Calculate UDS?

Calculating the undivided share of land is easy and can be done using a simple UDS calculation formula:

UDS = (Total area of the land)*(The size of an individual apartment) / 
(The total area of all apartments in the building)

Example For UDS Calculation

The formula may look complex, but it is pretty simple.

The UDS calculation will become easy to understand using an example.

Suppose a person, X, owns a 1000 sq. ft., 2 BHK flat in an apartment.

Let's consider that the apartment has only 2 BHK flats.

There are 100 other 2BHK flats.

Assume the total area of the project = 20,000 sq ft. 

The total area of all apartments in the building = 1000*100 = 1,00,000 sq. ft.

Thus, the undivided share of land for X = (20,000*1000)/1,00,000 = 200 sq ft

What are Some Important Points To Keep In Mind Regarding The UDS?

• Pay attention to your final copy of the agreement and check whether the UDS clause is mentioned there.
• Always reread the final copy of the agreement carefully. If possible, get a lawyer to go through the same for you.
• If you find any discrepancy between the UDS promised earlier by the builder and the one mentioned in the agreement, clarify it with the builder.
• Also,check the UDS in different documents and ensure they are identical. If not, get it corrected.

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Conclusion

Having one's own house is a dream for many. Every individual saves regularly to afford the perfect home of their dreams. Hence, it becomes important that you take the utmost care while searching for the perfect house. The homeowners should remain vigilant and crosscheck every document. Furthermore, you should also explore different options before finalizing on any one.

Let SMFG Grihashakti be your aid in securing your dream house. You can avail home loan at a lucrative rate of 9.5%* per annum for salaried individuals and 10.5%* per annum for self-employed people. There is a minimal processing fee, and the application process is 100% online without paperwork. Check your loan eligibility through our loan eligibility calculator and apply!