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

POSTED BY manish ON September 16, 2013 COMMENTS (166)

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 ?

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166 replies on this article “What is “Undivided Share in Land” and why it should be in mentioned your agreement ?”

  1. geetha says:

    Sir,
    Recently we purchased a property which is a joint venture. The land owner is a single person and the builder is proprietary concern. Jv is not registered. In jv the owner and builder has 50 – 50 share. He has alloted 3 flats to owner one in ground floor, and 2 in second floor. The 1st floor consists 3 flats which builder share he sold to different buyers. As per plan aproval there is a pocket terrance in second floor. In that open terrace the builder constructs one additional room to owner which not mentioned in approval. In jv they said that the open terrace in 2nd floor has right to be enjoyed by all flat owners but it was overwriten as enjoyed only by land owner. The owner also sold one flat in second floor. Now he has only 2 shares. My questions are the deviation of plan approval ie., additional construction is valid. The unregistered joint venture is a valid document in court of law. They mentioned in jv as the right of enjoyment is solely to land owner is valid. If it is valid the owner has to construct any building in future. If he sells that second floor property to other person the right of open terrace in that floor is also transferred.

    1. Hi geetha

      Thanks for asking your question. However, I dont think I am eligible to answer your query as its either out of scope of my knowledge or its not related to money matter directly

      Manish

  2. vikrant says:

    Hi Manish,

    My question is related to the area which is to be used for calculating the UDS. Now when the builder get’s the society approved, for calculating FAR for construction, he uses the whole land which includes open park area, Parking area and other common areas outside the building, but when he transfers UDS to the buyer, only uses the area on which that particular building is constructed. As per regulations is this a fair way of transferring UDS to the the flat buyers.
    Thanks.

    1. Hi vikrant

      Thanks for asking your question. However, I dont think I am eligible to answer your query as its either out of scope of my knowledge or its not related to money matter directly

      Manish

  3. afreen says:

    We have given our land for development to construct a shopping mall (G floor+1floor) so now I want to know that who will get the ownership of terrace

    1. Whatever is there in the written agreement . Check that

  4. Anwar says:

    I have bought a commercial property with UDS. I am paying municipal tax what about land tax. I am paying for my home land and building tax. For UDS there is no land tax to be paid? Or is there any documents related to it must be completed from builders….?

    1. I have never heard of any taxes related to UDS

  5. rukmani says:

    We have uds equal 5 flat owners. but the carpet area differs, that is 1 owners have 1400 sq.ft, 2owners have 1000sqft, one owner 850 sq.ft. and 1 owner have 600 sqft. now if we demolish and construct again what would be the carpet area for all of us according to rules in chennai. total land area is 3800 sqft. 30 yrs old building.

    1. Hi rukmani

      Thanks for asking your question. However, I dont think I am eligible to answer your query as its either out of scope of my knowledge or its not related to money matter directly

      Manish

  6. srinivasan says:

    My wife’s grand father bought a land about 4.5 Ground in 1958. He has 3 sons & 5 daughters. my mother-in law was one of the daughter. she died in 1997 and grand father was died in 2000. In 2005, they made a partition without my wife and her sister’s knowledge. in that they had gave Rs.10,000/- to each daughter’s and mother and the land was partitioned by sons. they had not given any money or land to my wife and her sister’s. In that partition, they had mentioned total family property value is Rs.10,00,000/- and divided property value is Rs.6,00,000/- Here balance Rs.4,00,000/- is in undivided. Undivided part of land is Schedule 1. and divided part is schedule 2, 3, & 4.

    What is my Wife and her sister’s share in this property.

    1. Its too deep query, please contact a property lawyer for this query.

  7. kc says:

    we have uds equal 5 flat owners. but the carpet area differs, that is 1 owners have 1400sq.ft, 2 owners have 1000 sqft, 1 owner 850 and 1 owners have 600 sqft. now if we demolish and construct again what would be the carpet area for all of us according to rules in chennai. total land area is 3600 sqft. 30 yrs old building.

    1. Hi kc

      Thanks for asking your question. However, I dont think I am eligible to answer your query as its either out of scope of my knowledge or its not related to money matter directly

      Manish

  8. ram says:

    hello sir ,
    we own a flat of area 280carpet +120open terrace attached with our flat. but the terrace is not included in fsi and in the agreement of builder it is mentioned as 1rk with uds so what does it means ??? wether the terrace which is not in fsi is our property or not ???

    1. ram says:

      and sir there are total 80shares which are divided into 16 flats each flat owner has 5 shares of rs 50 each so when we go in redevlopment can we ask for equal area from the builder which he will giving to the rest of the members???

    2. It all depends on how your agreement is made

  9. Sudhi says:

    I have a doubt like Total land area is 2396 sq.ft and there are 6 apartment as per the plan and builder sold 2368 sq.ft as UDS to the 6 apartment owners and 28 sq.ft remaining and there is a small single BHK house in Ground floor which is not in the actual plan, whether he can sell that with the 28 sq.ft UDS?

    1. Hi Sudhi

      This is a bit technical, Please take help of a lawyer in this

  10. Mannav says:

    Hi , I wanted to inquire, if builder is stating the UDS in the sale deed is it okay can be rely on the same.
    Or its better to go for legal verification before registration.

    1. Going for legal verification is always a great option.

  11. Mohan says:

    Hi Manish

    I have a query i am hoping you can help with. In the absence of anything specified in the sale deed / ownership document, is there a law or a notification which clarifies the point you have made i.e. the land share will be proportionate to the number of floors / built up area which is under ownership?

    Thanks

    Mohan

    1. That you can only get from a lawyer. What I have written has come from various internet sources only.

  12. pundalik says:

    hi. Hope you will help me out.
    My friend was residing in a society (just houses, not an apartment). the land was owned by the society. the land was under gram panchayat and N/A. Society went into an agreement with a builder that he will construct flats and give them to society and society will allot the flats to members (in 1994). Same was followed and in 1996 builder handed over the construction.
    society allotted the flats to society members (having share certificate of society). now does each member of society needs a sale deed for their flat?? was the stamp duty & registration applicable to each flat.

    1. Hi pundalik

      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

  13. krithiga says:

    we have uds equal 9 flat owners. but the carpet area differs, that is 3 owners have 850sq.ft, 3owners have 550sqft and 3 owners have 400 sqft. now if we demolish and construct again what would be the carpet area for all of us according to rules in chennai. total land area is 3600 sqft. 35 yrs old building.

  14. Padmaja says:

    Sir,

    They have given in document as flat measuring 68 sq.m(plinth area of Flat) and plot area 77.27 sq.m.Can you please explain me how much UDS we get? Plot area means UDS here? Expecting your reply.

    1. Hi Padmaja

      This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that

      Manish

  15. suprabha says:

    hi manishji,

    we have selected a plot area 1050sqft (30*35) but usd is 550sqft which comes 1600sqft. 1600 sq ft will be registere in our name but thinking will 800 in ground level and 807 in first floor will be a smaller house. earlier we taught 1600sqft but later builder clearly said plot area 1050 sqft and usd around our plot comes 550 sqft. will 3 bhkk house comes very small. its burden land yet for that model villa it fetches huge 8 months with roads.

    1. Hi suprabha

      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

  16. Vicky says:

    Hi Manish,
    I am now a regular reader of Jagoinvestor and it has definitely made me much more aware and helps me in taking wise financial decision.

    Regarding this post, I have a query. I booked a flat back in April 2012 and still awaiting for possession letter(otherwise flat is almost ready). But after reading this post, I realized that there is no mention of UDS in our Agreement to Sale and this has worried me.

    Can you please advise what can be done for our right of UDS? Its a special township project so huge no of flats so not much idea of how is calculation of UDS done here. Please assist.

    1. Its like this. YOu cant do much . Your agreement must be already done and there is no mention of UDS. What can you do ? Talk to builder on this and see what he says !

  17. Bharathiraja says:

    Sir,

    I am buying a flat from the land owner. The joint development agreement between the builder and land owners is registered but the sharing agreement between the parties is not registered. It is just done on a Rs. 200 stamp paper before notary. Because of this, my lawyer insists that the directors of builder company or a registered GPA be brought in as consulting witness for both agreement and sale deed. The land owner says the directors have authorized an official from their side to be part of all sale deeds as one of the parties, in a board resolution and the directors need not sign any agreement as this is a private limited company. My lawyer suggests me to drop the deal in that case. What do I do now? Your advice will be of great help. Thanks in advance.

    Regards,
    Bharathiraja R

    1. I suggest that you follow advisor of what your lawyer says . He is more qualified person to comment on this matter.

  18. Sudha says:

    Hi Manish,

    Thanks for sharing very useful information. Is it a common practice for the builders to give UDS for the villa buyers as well? One of the builder I was talking to mentioned that they can only provide UDS equal to our villa land (about 3500 Sq Ft) out of the total land owned in that township (about 50 acres in total which includes apartments and villas). Should we insist in getting the specific portion of the land where the villa is built to be registered in our name?

    Thanks
    Suresh

    1. You can do that, but I am not sure how builder will react to that

      1. Suresh says:

        Thanks Manish. Builder said it can’t be modified. What is the downside of buying villas with UDS?

        1. THere is none . Its good that you are atleast given UDS even though not as per your choice, but its there . UDS is more useful in case of apartments where there is a greater risk of building collapsing incase of earthquake or something else, where a big group claim part of land or for reconstruction.

  19. sagar says:

    Mr.Manish.

    what is the ratio between the undivided share of a land and saleable area

    1. As per your project amenities

  20. Wriju says:

    Hi Manish, I have a question regarding a flat that I am interested in. The land on which the building is constructed is divided amongst 4 brothers (each have 1/4 undivided share as per development agreement). Now the flat was alloted by the developer to one brother’s legal heirs (wife + daughter, as he had expired recently) as part of a supplementary development agreement.

    My question is do the remaning 3 brothers or thier legal heirs have any claim on this flat or its associated undivided share of land?
    Also while entering into an agreement how much risk is involved if one of the brothers is not willing to give legal consent?

    Thanks and regards
    Wriju

    1. I am not qualified to comment on this . I suggest you meet a property lawyer

      1. Wriju says:

        Already did Manish, and the remaining parties need to be included either and consenting party or as vendors. For buyers the “vendor” option is better.

        1. ok great .Can you teach me what you learnt out of this episode ?

          1. Wriju says:

            I consulted a lawyer and a judge for this and found the following:

            a. In this particular case ALL parties who are owners of the UDS of land need to be included (confirmed by bank and property lawyer) in the initial agreement and the Conveyance Deed.

            b. Now I also confirmed from the judge a very sensitive point (which I am not disclosing on a public forum like this). If you want complete details send me a mail to wrijub@gmail.com. But the judge explained to me that if the seller/vendor/owner of the land belongs to a particular religion (this is where it becomes very sensitive) then an additional step is required. First a court order needs to be taken and a notice needs to be posted inquiring whether there are any known relatives of the seller/vendor/land owner who have claim over the property. Once posted the buyer needs to wait for two months before another notice (with court order is posted) confirming that there are no known relatives.

            Else such relatives are entitled to claim share of the property (from the buyer) and share of sale proceeds (from seller) even after final sale and conveyance deed.

            I know its confusing but I can only share so much without causing an uproar, hope you understand.

            1. Thanks for sharing this much. Will mail you if I require additional info

  21. krishnan says:

    hi sir,
    actually i wanna sell 4 shops in the first floor of a complex ! which has area of 900 sq.ft with a UDS of 188sq.ft , how should we calculate the rate of the shop?? if suppose the market value of per sq.ft is 4000Rs, then should caluculate like, 4000*900 (or) 4000*1088 (including uds) ?? kindly show me the right way and reason too !!

    Regards,
    Krishnan

    1. Hi krishnan

      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

  22. Hari says:

    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

    1. 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

  23. Sharanya says:

    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

    1. If you dont have documents, you will then surely have the issues . Why dont you take the documents from other person ?

      1. Hari says:

        they all have original uds documents, can we go for a space sharing agreement.

        1. Hi Hari

          Its better to involve a good real estate consultant here .

  24. RAJRATNAA says:

    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

    1. 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

  25. Sourabh says:

    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.

    1. 1. Yes, a lot of builders do that . its upto you to accept the agreement or not

      2. Too complicated for me to answer. Check with a property expert !

  26. srinath says:

    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.

    1. No , you dont get location , but only the share , thats all

  27. Inderjeet Singh says:

    Thank You Mr. Manish
    Very Useful Information.

    1. Welcome .. Glad to know that Inderjeet Singh ..

  28. sudheendra says:

    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

    1. Hi sudheendra

      The question asked by you is beyond our scope. Its suggested that you hire an expert on the issue and pay them for the advice.

      Manish

  29. Karthik says:

    i have an UDS Land which is unbuilt. is it possible to built a house in UDS Land?

    1. You means its there in a big housing society ?

      1. karthik says:

        Yes.. exactly it is a housing colony

        1. Karthik

          You cant build a house there. The UDS is only for the purpose that your share is intact and nothing else. In future, god forbids if something like earthquake happens and everything is demolished and everything is again rebuilt, you have the right in the new structure only because you have UDS !

  30. Rona kukie says:

    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)?

  31. Navin says:

    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.

    1. Thats ok even if others are owners. THe main point is that later the land is owned by you or society ! . Let the lawyer give him comment

  32. Jawad says:

    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.

    1. Hi Jawad

      I think you should consult this with a good property lawyer !

  33. Hema Kakkar says:

    Ok here is the Question about land share and roof rights.
    A building with GF, FF and Second Floor, each having seperate owners named A,B and C. Each owner has 33.3% land share as per registry.
    C also has roof rights ‘upto sky’, and can modify roof as per her wishes according to registry document. A& B can use roof for water tank etc. only.
    Now C wants to construct another floor on the roof (i.e 3rd floor), but A & B says its not possible since that will reduce thr land share to 25%?
    As per DDA notification, C doesnt need to take permission/NOC from A & B. But what about Land share in this case? What A & B are saying about land share, is it legally sound? Can A & B use this logic to stop C from constructing another floor over roof? IF yes, Then what is the purpose of Roof rights for C?except water tank and holding parties?! No commercial value?

    1. Mohit Jalan says:

      I also have the same question

    2. No , I dont think land share will change here . As its already mentioned that they each have 33% share, then it will be same later also .

    3. Please consult a property lawyer on this.

  34. Jawad says:

    Iam a land owner, joint ventured with a builder for residential apartment measuring 30000sqft land area. The builder has constructed only 19000 sqft only that is G+3.uds is divided only for 19000 sqft. The rest land is vacant which has high tension electricity cable. My question is to who the land belongs to, as the builder not sharing this land as uds.

    1. I think you need to talk to property lawyer on this . I cant comment

  35. AWADHESH says:

    Hi Manish,

    I have registered a flat, but my builder has not mentioned anything about UDS in sale deed. I told him to put UDS but he refused, He told the UDS will go to name of society after 2 years and you are member of it. And by this way you will get share and rights of land. But same is not mentioned in sale deed.

    I have approached 2-3 lawyers for same, they told UDS rights automatically comes to flat owner.

    Kindly suggest do I have rights on UDS as its co-operative apartment.

    Thanks,
    Awadhesh

    1. Yes it should be there . If its going to be transferred to the society, then its yours only, as you will be share holder in the society !

  36. pradeep says:

    Thanks

    1. Balasubramanian says:

      Very useful article, What about land, ie Land is Layout and got DTP approval and have around 100 site, and also two park area are mention in the brochure and same handover to city corporation by real-estate company.

      With about mention info,
      My quires is
      1. UDS anywhere related to Land or site or only related to flat/apartment?.
      2.We need to consider UDS in the time of purchase of land?

      I will be very thankful, if my quires got answered>

      Thanks in advance,
      Bala

  37. Rishabh says:

    Hi.
    I have just looked at my flat agreement that was done like 30 years back. There is absolutely no mention of UDS what so ever! What do i do? Please help.
    Thanks.

    1. Hi Rishabh

      I dont see much issue as far as you are living in that flat, but god forbid , if there is some disaster and the building collapses, when u need to have a claim on the land for your part. UDS is exactly that.

      I think you need to catch a property lawyer for this and just understand where you stand , the fees does not cross few thousands (less than 6-7k) for consulting !

      Manish

  38. s r sahu says:

    dear sir
    is the law different for different state regarding uds.
    i belong to chhatishgarh. and here a builder says that in chhatishgarh the undivided share of land becomes by default .. no such registration is necessary.

    1. I am not so sure of that !

  39. Bibek says:

    Does UDS calculation excludes CA and Kharab Land from the total land?
    I am asking this in context of a apartment complex coming up in 16 acres of land.

    1. Its the total land overall from start tell end

  40. sunil says:

    I am planning to buy a office in town: vasco-da-gama , state: Goa.
    I have took photocopy of Agreement not reg. & Registered Sale Deed.
    The owner of the flat say that the area of flat is 58 sq mts & it is mentioned in the agreement but if you check the sale deed only the area of undivided share of property is mentioned as 32.50 sq mts mentioning the office unit nos. T-5.
    No where in the entire reg. sale deed 58 sq mts is mentioned.
    if you physically check the area it is definatly more that 32.50 sq mts as mentioned in deed

    My question is if i will apply for a bank loan what area will be considered for the sanction of the loan

    1. I dont think they will consider the area for deciding the loan amount. Its decided by your income

  41. PRakash2014 says:

    Hi Manish,

    Request you to please help me with the following queries:
    1. Can a flat in Bangalore be registered under a sale deed which specifies sale of UDS only with only value of UDS specified in the sale deed and not that of the built flat and the UDS? The flat is completed and the builder is waiting to get the OC.
    2. The builder is refusing to add the details of the built flat in the sale deed stating that as per the customer agreements they are only selling the undivided share of the land and not the residential flat. Hence, the details of the Residential Flat and payment details on the flat cannot be incorporated in the sale deed
    3. What are the repercussions of getting a flat registered with such a sale deed for UDS only?
    4. If this is not legal , which authority has to be approached for a formal complaint against the builder? As it seems like the builder is doing this to save themselves from paying some tax . ( However please note the stamp duty and registration charges for the sale deed registration is collected and paid to the government for the whole value of flat and UDS)
    5. If it is ok to go ahead with the registration, are there any precautions , dos and dont’s to be followed while registering an UDS only sale deed , are there any documents that needs to be collected later from the builder to show the building is completed?

    1. Hi Prakash

      I think this is a complicated query and we are not the right people for this . So better involve a good property lawyer for this

      Manish

  42. honey john says:

    my question is now adays flats are ornamented with club houses indoor game area outdoor game area provision stores etc does all this come under the total constructed area plz reply me asap bcoz i am in th verge of buying a flat with lots of amenities

    1. I didnt get your question ?

      1. honey john says:

        when calculating uds does provision stores provided within the plot is included under super builtup area?

        1. I think yes it will be included !

  43. Chitra says:

    Actually the broker is cursing us for not giving money and so my father has committed to pay Rs.5000. I will definitely advice if we get Property calls from website where u have registered, beware of brokers as they would ask to pay commission…

    1. Hmm.. its your choice now .. better not give anything

  44. Chitra says:

    Yeah my father has told so that he wont be disturbing otherwise the broker will call again and again and disturbing…. Thats y.. This is my father’s decision..

  45. Chitra says:

    Hi Manish,
    I am little bit confused and thats y i am asking this question. I have registered in a property websites to purchase a flat. So, i will get calls to see the site. Once real estate broker called us to see the flat and we went to see the site but we didnt like that site and left the place. After some days the same broker called us to see another site and we went to see the site but it was not in my budget and we left the place. Again, this broker called us to see the site and so we went to see the site and liked the flat and so we purchased a flat. After my registration is over, this broker calls us to give the commission. Actually we didnt commit any commission to this broker. I purchased a flat for Rs.27Lakhs. He is asking 2% commission now. We told him that we didnt commit him any commission and we told that since he has shown 3 places, we told him that we will give Rs.1000 and not beyond not. Now, he is asking 1% commission. We dont know what to do.. Could u plz anyone advice on this? Thanks in advance.

    1. There is no reason to pay if things where never discussed and agreed on .. Tell him there is no reason to pay , where was it agreed on ? There is no ground to pay ! ..

      Also tell him that you will do a police complain if they harass you !

      Manish

      1. Chitra says:

        Yes sir. We told him that we are not giving any commission. Finally, he scolded us for not giving commission.. Not to make things worst, my father told that he will give only Rs.5000 so that he wont be disturbing us.. I am not satisfied with my father’s decision. I told that since we didnt commit, there is no point of paying. Is this decision correct?

        1. Yes, you should not pay even Rs 0 , Because they get commission from BUILDER anyways .. they get anywhere from 1% to 3% commission !

          Why to even give Rs 5,000 ?

          Manish

  46. Surendran says:

    Dear All,
    i need a answer, i plan to purchase 2 BHK & its Fourth floor (P+G+4 ), but i am getting only 89 Sqft of undivided area, its worth to purchase the flat, the flat contains 60 Flat,

    1. Thats not the issue, the overall land on which the flats are constructed, you will get a share out of that land area only, so is X is the total land area, is X/60 somewhere near to 89 sqft or not ?

      Manish

  47. Chitra says:

    Thank you Manish. Useful Information. πŸ™‚

  48. Chitra says:

    Very useful article about UDS. I m going to purchase a flat. Could u please tell me what are all things to check in the document so that it will be very useful for the buyers like me and also I just want to know what are all factors needed to calculate the amount for registration? My builder is saying from Oct, 2013 onwards, 2% Construction cost has to be included along with the registration. Thanks in advance..

    1. Hi Chitra

      I am not aware of this particular rule. Documents which you should check is mentioned here – https://www.jagoinvestor.com/2013/08/real-estate-and-property-terminologies.html

  49. astrosunil says:

    just FYI….SBI home loan application form has UDS field which you need to fill(I came across three or four formats of SBI application forms). So in case if builder has not mentioned in the agreement, insist on the same telling its mandatory field in SBI form & I need to have it in agreement. It also has carpet area etc. So get SBI or any any bank application form & get these parameters made official before signing on agreement.

    1. Thanks for sharing that tip Sunil !

  50. Bharat says:

    hii manish
    i am having one one question in my mind.if there is a 5000 sqft area of land in sq.ft and there is a building of 5 floors in it .on one floor there is four flat of 1000 sq.ft
    that is total 20 flats .then what would be UDS for each flat owner ?
    weather it will be 1000 sq.ft for each flat owner. ?
    if yes then 1000* 20 flat = 20,000 sq.ft > 5000 sq.ft of land then total UDS is not equal to land size.
    or it will be like 5000/20 =250 sq.ft UDS for each flat owner

    please clarify……

    than x in advance.

    1. It should be ideally 250 sqft for each , 5000/20 ! . Builder can put lesser than that if he wants and keep some for himself πŸ™‚ .

      Manish

  51. Hem says:

    Thanks for such an eye opener article, Manish.

  52. ylokesh says:

    Hi Manish,
    This is really good article, I have a question in my mind. The builder has constructed two pent houses one for him and the other for the land owner which are not part of the actual plan and they can not go for registration. I came to know that the pent houses have UDS as well, if the flat is not as per the plan how it can have USD? is there any Govt body(in Karnataka) where this can be challenged?

    The following is not related with UDS, but with deviation in the construction.
    When the govt allows for regularizing the deviations ( akrama-sakrama) like pent houses, who should pay the the penalty? with out regularizing the deviated plan the flat owners would not get the Occupancy certificate with out which the sale dead is worth less? can we push the land owner and the builder to deposit certain amount in the association account towards regularizing the property when Govt announces? If they wont then what is the basis for calculating the penalty?

    I said one question but asked many πŸ™‚

    1. Actually this requires a lawyer to answer, but overall I can say that if things are not as per LAW , then please get it rectified now itself else years later you will really pay for this . I hope you know about CAMPA COLA compound case in Mumbai which is such a big thing now .

      Meet a good property lawyer I would suggest.

      Manish

  53. Chetan Ambi says:

    This is really an eye-opening article !! I was not aware of UDS at all. Thanks you Manish.

    1. Welcome ! , spread the knowledge !

  54. Murali Krishnan M S says:

    Hi Manish,

    Thanks for the useful information. I have a confusion in arriving at a fair price for my apartment, which I want to sell now. It’s about 800 sq.ft and 471 sq.ft of UDS. The building is about 13 years old and the land cost is about 2.5 crores per ground. My question is: When I sell the apartment, is it 800 sq.ft PLUS 471 sq.ft? If yes, the total price of the deal would be 800 x 3500 + 471 x land cost per sq.ft? Please clarify, as I’m totally confused and don’t want to do something in haste and end up in heavy loss. Thanks and regards-Murali

    1. Its a great question, but needs a lot of views and some brainstorming . I would really request you to open a thread on our forum and lets discuss it there – http://www.jagoinvestor.com/forum

      Manish

  55. pappu says:

    what is will be the in case of three floor & one aprtment for which map is aproved. Further roof rights has been sold to someone else, does that person ( who is having roof right) have any share in land?

    1. Pappu

      Can you please open a thread on our forum – http://www.jagoinvestor.com/forum

  56. Chanchal Sheik says:

    Hi Manish,
    This is a very useful article. Thankyou for the post. I am planning to book a small flat 1bhk 301 sqft on the outskirts of kolkata and the agreement reads “the Purchaser/s intends to acquire on ownership basis a Flat with proportionate impartible undivided share of land in the proposed building to be constructed on the said premises.”
    It would be a real help what this means.

    Regards,
    Chanchal Sheik

    1. Looks good to me . Its the same thing which is mentioned in this article . But please consult a lawyer before moving ahead . It does not cost a lot of money !

  57. Mukesh says:

    Dear Manish,

    Thanks for this informative article.

    A query:
    Does the UDS applies only in case of housing societies or does it also apply if the builder is not forming the society but an association? What rules apply in case of an association?

    Regards

    1. It should apply always . It should be mentioned in the agreement . If its not, then your builder is kind of cheat !

      1. Mukesh says:

        Thanks Manish.

  58. astrosunil says:

    Thanks for this nice article, was an eye- opener. How accurately we should check the fraction, say 85 units* 1200 sqft = 102000 sqft totally . Each owner share will be 1.176. Will this be approximated as 1% in the agreement ? Is this ok or we should insist to put as 1.17 itself ?

    1. Good question , I am not very sure on that . I have seen it upto 2 decimal points !

      1. astrosunil says:

        ok, So I must take care to be accurate to 2 decimal places. Thanks !
        If the appt land is not exactly rectangle , then these decimal places will definitely come into picture !

        1. How does it matter, if its rectangle , lets say 10X10 or 15×20 , and there are 13 apartments, then also share will be in decimals

          1. astrosunil says:

            yes, you are right !

  59. kulbhushan says:

    Yes. This is indeed very important. I personally prefer to have a lawyer with me and pay him the required fees when going to buy any land especially for long term purpose…

    1. Thats always a better idea !

  60. Umashankar says:

    Dear Manish,

    Thank you for your wonderful insight.

  61. Shiv P Chatterjee says:

    Hi MANISH ,Your articles are informative and bit alarming too as we realise that we should not have done that way after your alarm and we have already done it.
    Anyways I have bought a Delhi development authority flat from the allottee but my question is
    A. Do we have same UDS policy exists here too.?How much land is given to the dwellers in DDA?I hope the calculation is equal to all residences as it is a govt allotted land.?

    B. I have heard these flats are on a lease of 99 years ?how to freehold them?

    Please advise elaborately

    1. If its on leaseland , then it mostly wont apply , because you are not owning them, you are just leasing them

    2. SHIV says:

      Hi Manish,
      Thanks for your reply.So My building does not have any vaule in case of any incident you know what I mean?
      So the only option left is to get it insured against any natural calamities.
      Now If I get it insured say for 2500000 and I have a home loan pending of 700000, am I supposed to get 25-7=18lack if anything occures?
      or
      do you thing there is no value doing insurance for such property

      please reply elaborately?
      B.Regards

      1. Yes, As per my understanding, a leasehold property will be back to owner of land after lease ends . But still you can get the insurance and enjoy it for that much period

        1. bharat shah says:

          the house insurance is for the structure cost only , the land cost is not covered whether it is freehold or leasehold , as i understand.

  62. Priyadarshi says:

    Dear Manish,
    what the buyer can do if this is not clear or not mentioned in the agreement
    Do the buyer have some legal rights on this is
    please do guide on this

    1. No , there is no legal rights as of now . You only have an option of choice. Do you want to go ahead in such situation or not !

  63. sanjay pawar says:

    Thank u very much for such imp.information . I own flat which is reg. Under society so is it fine or I have to check anything else

    1. Still you need to check it in agreement

  64. shyju says:

    This is very informative article

  65. Ar. Makarand Rotithor says:

    Dear Mr. Manish,
    Thanks for sharing valuable information. I am surprised & doubtful for the statement, “In a co-operative society, the land share is equal for each member, irrespective of their property size”. Please confirm. Rest is fine.
    I am an Architect worked for the builders when I was practicing. Now I am working at renowned developer company in Pune. Also I am facing similar kind of problems as an owner of the flat as well as a secretary of our housing society.
    After working in various roles, I came to the conclusion that our govt. is mainly responsible for the most of the problems who is not implementing the law properly. And mostly people are also responsible who are reluctant to fight for rights. We thought that why should I fight for common interest? it makes many enemies too. Otherwise it is better to sale the flat and move ahead to run from one problem to the next another.
    Why govt. does not make regulations which can be implemented with automatic effect? Recently Maharashtra Government appealed all housing societies to apply for the deemed conveyance deeds. It has again some procedure required to be done with unity where members do not come together. Hence genuine people get suffered. Instead of that if govt. would have declared that all old societies are now onward supposed to be conveyed their properties automatically. And builders and land owners should challenge in court for the dues if any.
    Govt. is also changing FSI rules dynamically; hence builders and land owners avoid executing conveyance deed so that they could extract more and more what is wrong in that? To stop all this there should be some mechanism which will execute automatically to establish the rights innocent flat owners.
    In our society, our builder sold us flats where legally he has not committed any clubhouse in our sale deed. But orally he was promised and also presented it in his brochure. He developed the same too. But now after our society formation he amalgamated our land with the adjacent land. And now he shared our clubhouse & access with added wings. This was shocking for all of us.
    Hon. Supreme court declared that Parking is not saleable. But further guidelines were not given. Hence now builders are selling it under different head. Again it promoted new bad practices. Actually builder should load parking expenses to his saleable area. But he cannot compete with other’s rate. Actually common parking is the best source of income for the societies, but once allotted sold parking cannot be taken back by the society though the sale is illegal.
    We people should push the govt. for these automatic executable laws. So that some cutoff dead line will govern the builders, land owners. The task is really difficult since the builders are the back bones of most of the political movements but not impossible.

    —MAKARAND.

    1. Thanks for sharing all that Makarand. While researching for this article, I read that point.

  66. Vijay says:

    Great info. I was aware of the leasehold/freehold and the idea that most leasehold ‘will’ end up being freehold at the end of the term. The info you’ve provided completes the circle, so to speak! Thanks. Have to now look up my apt.’s agreement to see what it says.

    1. Have a look fast πŸ™‚

  67. Brajesh says:

    In my case builder has mentioned the UDS in the agreement. He has calculated it like this: – My shares = Super Builtup Area of the apartment * a factor.
    This factor was told to me only the day I went to sign the agreement. They have not given any logic how the number was picked up. Now even if I ask them and they provide me with the total Super Builtup area and total land area is there a way I can verify the two?

    1. You can get it done that just like that, you need to hire surveyor for this and it costs . But now if agreement is over, its kind of futile for you !

  68. Puneet says:

    Most important question is: Can you really do something about it? Really? Suppose if you find something in the agreement that you are not 100% sure of or do not agree to. What are your options?

    If you think that you can ask for some changes in the agreement…think again please. No builder would entertain this. Many reasons would be quoted etc etc..
    You are already in the Builder’s trap..have already paid the amount (most, if not all of it) to the builder.

    1. Most of the builders provide the copy of an agreement (a sample one) to you after you have booked the flat (by paying token amount). If your builder is so much reluctant to give you any documents like that, then its safe to conclude that the decision of going with that builder was wrong πŸ™‚

    2. Hozy says:

      hhm… puneet has a valid point…. the builders make a standard format of agreement… and dont entertain people to modify to their will…. its either take it or leave it.

  69. Parag says:

    Hi Manish,

    Is it same like share certificate or it is something different?

    1. Its just a line mentioned in the agreement .

  70. bharat shah says:

    thank you for important post about UDS. one more thing about land one should check whether it is free hold or on lease , as i understand. naturally for on leased land (i think, it can be max. for 99 yrs. , but i am not sure!) the price would not be as much as for free hold land. sometimes the advertiser advertises the leased land flat as free hold on the net sites. so always advisable to check the documents.

    1. Thanks for sharing that point Bharat !

  71. Girish says:

    Great infomation.
    Thanks

  72. Joel Trinidade says:

    Dear Manish,

    My builder has a different abbrevation for UDS . He calls it as aUn Disclosed Sin . You should never mention it , never talk about and never think about it. Leave along any mention of it in the agreement.

    Thanks for this article. Can you please sometime take up the topic of share certificate in CHS.

    Regards
    joel

    1. You are not kidding right ?

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