UDS Full Form And How To Calculate UDS?
What Is UDS Full Form?
- UDS Full Form Is Undivided Share Of Land. When you buy an apartment, you generally buy two things. They are the built-up area and the proportional area of the built-up land.
- The buildings are occupied by the owners. The share of land allotted to the buyer of the flat in an apartment is called an undivided land share or UDS. The price of land is increasing day by day.
- Having UDS in the owner’s name also increases the investment in the flat. Your flat has no boundaries but shares. Shared areas include corridors, stairs, lobbies, parking, and gardens.
Major Components Of UDS Full Form
There are two components.
- Cost of the structure
- Cost of land
Importance Of (Undivided Share Of Land ) UDS Full Form
- The cost of an apartment consists of two important components – land and building. The cost of land is the undivided share of the building.
- In a few years, the building may be renovated or demolished by the government, when the property owners will receive compensation based on the undivided land in their name.
- If the builders provide you with a car parking space, they will be included in your UDS. If the landowners do not own their share of undivided land, they cannot sell the property or make a profit.
Significance Of UDS Full Form
- An undivided share is an individual owner’s share of land in a jointly owned property.
- UDS helps to establish legal entities for many types of development.
- Allocates common amenities to property owners.
- Undivided land plays an important role in determining common area and facility-related costs and maintenance.
- Depreciation of the built-up area in the building will not be a huge investment. But the value of the land will increase.
Legal Implications Of UDS Full Form
- Undivided land share is a valid part of a real estate contract. The building you live in has to be renovated in a few years or demolished in a government acquisition scheme.
- The compensation given to the flat owner is based on the percentage of undivided land share. As the flat owner is in a society, the UDS should be in the name of the society as per UDS law.
How To Calculate UDS?
A simple formula is used to calculate the undivided area of land. The total area can be calculated by multiplying the total area by the size of the individual apartment and dividing the result by the total area of all apartments in the building.
UDS = Built-up area of individual flat / sum of the built-up area of all flats x total land area
These apartments include a corporate area, stairs, a lift, and some common facilities all with a proportional share of shared area.
Checking Validity of UDS while Purchasing Property
- When you pay a down payment to buy a property, you need to get contract copies from the builder or sellers. The copy of the agreement between the two of them contains all the details including the undivided share of the land.
- The agreement usually also gives the details of the share of the UDS. These are usually expressed as percentage methods or square feet basis.
Things to know about UDS Full Form
- First of all, UDS should be mentioned in your sales contract.
- If the UDS is different, it should be changed before registration.
- If you apply for a home loan, banks will check the UDS before granting the loan.
- If buying a resale property, they will look for a share certificate from your housing society.
- While registering the property, the Sub-Registrar will look at the share certificate.
- In a cooperative housing society, everyone has UDS equal to their size.
Things to consider UDS Full Form
- Buyers should confirm the UDS with their developer as developers retain their property for future plans to build more floors in the building. Generally, there are two contracts.
- They are construction contracts and sale contracts. UDS is mentioned in the sale contract. The first flats are sold and registered in the name of the buyer before the construction is completed.
- Flats need to be registered only for land value. Stamp duty is payable only on UDS value. There is a separate contract for construction with the builder. Buyers pay registration fees in UDS as it helps to save money while registering property.
- UDS plays an important role in the real estate industry. It helps buyers and investors to take good decisions and protect their rights and interests.
- When dealing with UDS in real estate transactions, take good care and legal advice. Understand the legal implications and regulations to avoid future disputes.