What is “Undivided Share in Land” and why it should be in mentioned your agreement ?

You bought your “Dream Home” and you are on top of the world. The joy and pride you have after buying your home is amazing. The property is at great location and the prices are appreciating, and you feel you are the Hero ! . Now you want to sell your flat for some reason and you are more than confident that you will get a buyer and the deal will take just few weeks and you will be bathing in cash from top to down.

undivided share in land india

Prospective buyers have started meeting you and they want to buy the property, but they are all rejecting it. They are “informed investors” who take care of every single detail and they ask you that killer question –

Everything is fine, but where is your undivided share of land (UDS) in agreement?

You are wondering whats going on, quite amazed only to realize later that you were only sold the building which is depreciating each moment, but “LAND” , which is the real thing is not owned by you.

You are SCAMED or FOOLED ! or both ! . Let me introduce to the term “Undivided Share of Land” or UDS as its called generally in real estate world and why you cant ignore this at any cost while purchasing properties.

What is Undivided Share of Land (UDS) ?

I will keep it short and simple. Undivided Share of Land is the share of land owned by you when you purchase the property. Basically when you buy a flat or apartment, you are buying two things

1. The constructed building – where you actually reside
2. The proportionate share on the land, where the whole property is built

The Price Appreciation in real estate actually is the appreciation in land prices, because technically the building will depreciate overtime. Its not that cement and concrete structure which is the prime thing, but the land. Have you ever thought what will happen if there is an Earthquake and the building collapses ? What is in future, the govt wants to acquire the land for some national project and wants to give compensation to you ?

Leave all that, imagine in future your building after many years needs to be redeveloped and a new construction has to happen. At that time, the amount of land you own will matter. Note that incase of co-operative societies, the Undivided Share of Land might be on the name of society and not on the home owner name, because they are share holder in the society, which is fine.

The sum of all the flat owners UDS has to be equal to the property land size. You should also know that the undivided share of land will be proportionate to your property area.

Example 1 – If there is land measuring 1,000 sq and there are 10 flats or equal size is constructed on that land, then each owner will have 10% of the land as his/her share.

Example 2 – Lets say there is a big township where 100 units of 2 BHK flats of 1,000 sqft and 50 units of 3 BHK measuring 1,500 sqft . Then the total constructed area is (100 units * 1000 sqft) + (50 * 2000 sqft) = 2,00,000 sqft . Anyone who owns a 1,000 sqft flat will have 0.5% share in the total land (Because 1000 is 0.5% of 2,00,000) and anyone who owns a 2,000 sqft flat (3 bhk) will have 1% UDS .

There has been cases where the builder has allocated less undivided share to flat owners and kept some part of himself and the original land owner (a lot of times, builder buy the land from someone else). Here is one such example

Current apartment which I am staying is 10 years old apartment. Building having total 24 flats. Whereas builder made total 26 undivided share. Other than 24 flat owners one share for builder and one share for Land owner. In the share of builder and Land owner they constructed few shops in building cellar. SOURCE

Important Point – The above example is for apartment system . If its a co-operative society, then the land share is equal for each member, irrespective of their property size.

What to check in Agreement ?

When you buy the property, your builder will give you a date when you have to come to registration office and all the agreement work will be done. Most of the times, builders are reluctant to show you the agreement copy. But they will be ready to share someone else agreement copy at their office or at the main site.

Just have a look at that agreement which is like a specimen or the format, on some of the page, you will see “Details of Undivided Share of Land” and it will be mentioned in percentage terms like “0.45%” or exact area in sqft terms. Just read the whole thing carefully.

Then when the actual agreement has to take place, you can then read the agreement in detail and make sure you look after this point in your agreement copy. A small tip here is that when builder calls you for registration, tell him you would like to come before 1 hour from the scheduled time and have a detailed look at the agreement, if possible also get a lawyer with you and have him look at the agreement.

So did you check your agreement copy and see how much Undivided share of land you own ?

118 CommentsAdd Comment

  1. Hari

    ManishJi,

    we are the landlord for the old building of 2400 sq.ft before 15 yrs we have given to builder for construct new flat we have kept 600 sq.ft for us. but the builder has not given proper documents for the 600 sq.ft.

    now his advocate saying no problem we can go to the registrar office and make space sharing agreement it will cost around 35000.00 (Thirty Five Thousand Approximate) for register such a document

    sir, i have no idea about it. Please help me can we go through. with this.

    Hari

    • Hi Hari

      Your cases is a bit complex and I think we are not the right people to comment on it.

      My suggestion would be hire someone who is professional in this area and consult them

      Manish

  2. Sharanya

    Hi.. We purchased a uds land of 1606 sq ft . the total area of the plot is 2486 sq ft and the remaining 800/sqft of land was purchased by another person. We have built an individual house of 1000 sqft in our area. Now that we want to sell our house. Will there be any problems. Also we did registration first and the other person did last . so he is having all land documents. When we are registering to another person how can show our old documents except the sale deed oly which we are owning now.please help

  3. RAJRATNAA

    R\SIR, I HAVE TWO ADJACENT PLOT OF EACH SIZE 2000 SQ.FEET,HAVING TOTAL SIZE OF 4000 SQ.FEET.IN FRONT OF THAT HAVE NINE METER ROAD,I HAVE TO BUILT NURSING HOME AND RESIDENTIAL HOME ON IT.BUT PROBLEM IS THAT NURSING HOME SHOULD BE BUILT ON LESS THAN 12 METER ROAD ACCORDING TO RULES.THERE IS BUILDERS PLOT ADJACENT TO MY PLOT AND HIS PLOT HAVING 24 METER ROAD TOUCH AND AREA 5000 SQ.FEET..WE ARE PLANNING TO AMALGAMATION OF THESE PLOTS SO THAT I COULD GET BENEFIT OF 24 METER ROAD AND CONSTRUCT A NURSING HOME. BUILDER WILL BUILT APARTMENT SYSTEM. IS IT POSSIBLE TO AMALGAMATION AND THEN GET UNDIVIDED SHARES OF LAND TO ME OF SIZE 4000 SQ.FEET AND 5000SQ.FEET TO BUILDER

    • Hi RAJRATNAA

      Your cases is a bit complex and I think we are not the right people to comment on it.

      My suggestion would be hire someone who is professional in this area and consult them

      Manish

  4. Sourabh

    1. Can a builder have UDS in the apartment he has constructed without owning a flat in the apartment?
    2. If the apartment has to be demolished for road-widening purpose and say part of 4 flats facing the road (one on each floor) are being demolished then, how is the compensation given by the govt is divided and will this effect the UDS and how.

  5. srinath

    Thanks manish… for sharing the useful info for all apartment buyers.
    I have question..should the builder provide the exact layout of the UDS for individual apartments ..i mean…will a buyer know the exact location of his UDS in total land before buying the apartment.

    kindly clarify.

  6. sudheendra

    Hi Manish,
    I am planning to buy a flatof 1000 sqft. As per agreement draft. For 1000 Sqft, of super built up area along with 247 Sqft of UDS, Including one car parking in Stilt/Basement Floor. Usually agreement states like that or anything esle we need to look in to. 247 Sqft UDS for this flat is correct or we need to bargain/ask to crecalcualte to actual? Thanks in advance

  7. Rona kukie

    manish, about land share question.

    As per your answer, A & B cannot use this against C when she constructs another floor over roof (assuming she has the plan approved from DDA)?

  8. Navin

    Thanks Manish. Great article.

    I have just received my draft agreement today from the builder and in parallel read your article as well. I am purchasing a 3BHK flat. I am waiting for my lawyer to review the property documents shared by my builder to me.

    The size of my apartment is 1640sqft. Agreement says 640sqft is UDS. The builder will also handover the property to society after a year. But the builder is not the landowner. The land is owned by other individuals whose names are listed in the agreement copy.

    Though I will consult my lawyer for the agreement copy as well but I wanted to know if the ratio of SBA (1640sqft) to UDS (640sqft) is OK.

  9. Jawad

    I am with a joint development agreement with a builder for residential apartment of 33 guntas of land, the builder has got a approval plan for only 22 guntas, the remaining land of 10 guntas has high tension electricity wires. The builder is giving uds for only the buildup area, but not with the 10guntas of land. Now the question is to who me the rest land belongs to.

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