Understanding UDS in Apartments: How to Calculate Your Share Easily

Posted onJul 08, 2024

If you have decided to purchase a flat after studying the real estate market trends in Kochi, but have questions about its resale value or your share of the land in the apartment, we have the answers. 

What is an undivided share of land?

UDS or undivided share of land is that share of the land that is assigned to you when you invest in an apartment, without physically demarcated boundaries. When you purchase an apartment, you invest in not only the constructed structure, but also the land on which the building is constructed. The portion of land you co-own is called the undivided share of land. 

Why is UDS important?

The undivided share of land is a major factor that helps in determining the current value of the property when you want to sell it. If the undivided share of land is not allotted to you in the original sale agreement, you will not be allowed to sell that property. The undivided share is also important for calculating the compensation owed in case the apartment has to be demolished or reconstructed; this could be because the building sustained damage by forces of nature or human action. The compensation payable to the owner is calculated on the basis of this undivided share. The UDS is also a major consideration for banks and financial institutions at the time of scrutinizing home loan applications.

Components of Undivided Share of Land

The apartment cost comprises mainly these two expenses - the cost of the land and the structure. The cost of the land is the price of the undivided share of land within the building premises. In the event of the building undergoing redevelopment or acquisition by the government, the owners of the property are to be compensated on the basis of their UDS assigned to them at the time of the purchase.

The main factors that go into determining the undivided share of land is the total land area on which the building stands, the number of flats in the building, and the size of the apartment owned - 2 BHK, 3 BHK, 4 BHK, penthouse, and so on. This is because it is representative of the actual area that you own. 

How Can You Calculate The Undivided Share Of Land In Apartments?

Calculating the UDS is simple; you only have to use the following formula:

UDS = Total area of land x size of the individual’s apartment / total area of all the apartments in the building.

Let’s understand this with a simple example: 

Let us suppose there is a building with 10 apartments. Each apartment is 800 square feet and the total land area is 10,000 square feet.

Total area of the apartments = 800 x 10 = 8000.

Now applying our formula, the UDS of an individual apartment is:

10,000 x 800/ 8000 = 1000.

Each individual owner will have 1000 square feet allotted to them as UDS.

Remember:

• Your sale agreement must mention the UDS allotted to you; if it’s not, ask the builder to include it
• Check that the UDS promised and mentioned in the agreement are the same before registration
• Banks will verify your UDS when you apply for loans, and a share certificate from the housing society in case you are buying a resale flat
• The sub-registrar will check the share certificate during registration
• All members have equal UDS in cooperative housing societies, regardless of the actual size of their house.

Conclusion

Varma Homes is a reputed builder in Kochi offering transparent services to customers. You can be assured that the accurate UDS will be assigned to you and entered in the sale agreement as promised prior to the sale. We will help you with the registration formalities so that you can have a seamless purchase experience. With Varma Homes, you can unlock the doors to a whole new way of living.

Also read: Reasons for the growth of luxury flats in Kochi.

FAQs

What is the undivided share of land (UDS) in an apartment?

The undivided share of land (UDS) refers to the portion of the land assigned to you when you purchase an apartment, without physically demarcated boundaries. It means you co-own a part of the land on which the building is constructed, along with other apartment owners.

Why is the undivided share of land (UDS) important when buying an apartment in Kochi?

The UDS is crucial as it determines the current value of your property and your compensation in case of demolition or reconstruction. It is also a key factor for banks and financial institutions when scrutinizing home loan applications. Without a properly allocated UDS, you cannot sell the property.

How can I calculate the undivided share of land (UDS) for my apartment?

You can calculate the UDS using the formula: UDS = (Total area of land x size of your apartment) / total area of all the apartments in the building. For example, if the total land area is 10,000 square feet, each apartment is 800 square feet, and there are 10 apartments, the UDS for each apartment is 1,000 square feet.