• Undivided share of land

Hi I am looking at a property in Bangalore in which the UDS allocated in 21% of super built up area. Builder has a clause in the sale agreement that it may increase after all the phase is complete ( currently phase 1). They have FAR at 1.97 whereas permissible in 2.25.Builder says in future he would allot rest of the open spaces as they are still in process to acquire land for next phases.

Why the builder is not giving complete UDS at present?
Is the deal fishy?
How useful and important UDS is? does UDS plays role in resale of property?
Asked 8 months ago in Property Law from Bangalore, Karnataka
Religion: Hindu
1) without perusing the agreement we cannot say whether deal is fishy or not 

2) it is always better to buy a flat in project wherein builder has completed construction and occupation certificate is issued by BBMP 

3) you may pay little more but at least your money is safe 

4) consult a local lawyer . have the agreement vetted by him before you purchase the flat 

5) An Undivided share is a share of land allotted to the flat buyer while purchasing a property and it is registered in the name of the owner. When a home buyer purchases an apartment, he/she is entitled to : the constructed building and the proportionate share of land, where the whole building is constructed. the property price depends on the undivided share.

6) The UDS is based on the percentage of the super built up area of the apartment to the total super built-up area of all the flats.

Ajay Sethi
Advocate, Mumbai
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if you ahve any written terms and condition from the builders side then mentioned that terms and conditions to get best advise.
Nadeem Qureshi
Advocate, New Delhi
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terms of ageement must be accurate and applicable to the object of agreement. So be cautious when making agreement. If builder admitted in writing that he'll increase after all the phase is complete then you can make agreement because he is bound by the agreement to perform his part.  
Shivendra Pratap Singh
Advocate, Lucknow
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An Undivided share is a share of land allotted to the flat buyer while purchasing a property and it is registered in the name of the owner. When a home buyer purchases an apartment, he/she is entitled to 2 things: the constructed building and the proportionate share of land, where the whole building is constructed.

The sum of all the undivided shares must be equal to the size of the land in which the apartments are constructed. The more UDS one buys, the better value for money in future. In case of co-operative societies, the UDs will be in the name of the society as the flat owners are the share holders of the society. Otherwise, the flat owners should check their share of UDS in the sales agreement.

The UDS is based on the percentage of the super built up area of the apartment to the total super built-up area of all the flats. For instance, if 4 equally sized apartments of 1000 sq ft were built on one ground of land which measures 2400 sq ft, the UDS will be calculated as below: UDS = Super built-up area of individual flat / Sum of all flats’ built-up area X Total land area UDS = 1000 X 2400 / 4000 UDS of individual flat = 800 sq ft. It is important to know your undivided share of land before hand and verify the same with the actual sales agreement before registration.









Why the builder is not giving complete UDS at present?
Is the deal fishy?

The builder may play games of his own in this regard, you should not agree to his gimmicks. 
Have you ever thought what will happen to your apartment in case of natural disaster like an earthquake, building collapse or if government wants to acquire the property for a public project? Even if the apartment society wants to redevelop the property after decades, the building will be demolished and only the undivided share of land matters. It is crucial to understand your undivided share in a multi-storey residential project.







How useful and important UDS is? does UDS plays role in resale of property?

While buying an apartment in a multistory residential complex, we carefully analyses the carpet area, built up area and super built up area but the ownership doesn’t depend on the flat area but the undivided land share. In a flat system, it is necessary to check the undivided share (UDS) which will determine the value of the property.
While buying an apartment, Indian home buyers concentrate on flat area but clueless about the actual land ownership - Undivided share of land. The property appreciation depends on the land value (UDS) and not the concrete building. It is important to understand and ensure the UDS of the individual flat before buying it.


T Kalaiselvan
Advocate, Vellore
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127 Consultations
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From what you have stated there is nothing to believe that the deal is fishy but this is subject to the agreement that I have not perused.  Whenever a flat is purchased or agreed to be purchased the flat owner by all necessary implications become the owner of the share of land beneath it. The UDS remains fluctuating unless the construction is complete.
Ashish Davessar
Advocate, Jaipur
18061 Answers
446 Consultations
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Looks like builder has not yet gotten the plan approval from the concerned authorities which is why he is not committing on giving the exact UDS in the said flat, post approval he will give you 21% of SBA or higher depending on the approved building plan obtained by him. 
This is not fishy in projects which are pre-launched even before the approvals are obtained from the statutory authorities. 
UDS is important in Bangalore because this forms part of your flat SBA, in the unfortunate event of building collapse, or being destroyed by floods, war, earthquake etc., then the land on which the flat is constructed will continue to be in your name, this you or your legal heirs can give it back to a builder of their choice together with the rest of the land and seek for reconstruction of another flat from such builder, you will be paying only for the construction of the flat and not the UDS once again.
Kiran N. Murthy
Advocate, Bangalore
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50 Consultations
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