What is UDS in Flats?
Getting an apartment is convenient in many ways but the most nagging question that always lingers is, does the worth of the apartment decrease with time? This takes us to the context of UDS, or Undivided Share of Land, one of the fundamentals of property holdings.
So when you buy an apartment, you are actually buying the building along with a share of the land on which the building is built. That’s where UDS comes in, which is a percentage of the land which is also owned by you and increases the value of your real estate. This article explains UDS and how it impacts your real estate purchase.
Table of Contents
- Explanation of UDS in Flats
- Reason of UDS in Flats
- Guidelines on how to Compute UDS in Flats
- UDS in Property Deals
- Important Factors when selling a Property’s Undivided Share.
- Summary
Explanation of UDS in Flats
The abbreviation UDS stands for Undivided Share of Land which is mostly used in the real estate sector, particularly in the context of a building containing multiple units such as apartments and condominiums. UDS share can be defined as an undivided share in the land and other common areas within the apartment complex. This type of interest in ownership determines the rights and obligations of the owners and it also affects different transactions of the properties.
Why is UDS Important in Flats
What uDS Entails
In essence, UDS makes your exclusive ownership in a larger plot more explicit. So, apart from the flat you own, you also get to own part of the entire development.
Legal Boundaries
The UDS, in legal terms, is the definition of who owns what and what portion of shared property would be under your liabilities.
Amenities And Spaces
The common spaces that are available to all the owners in the UDS schemes are also determined by the percentage of UDS owned, i.e. car parks, gardens.
Maintenance Costs
This ensures that the property is kept in good order by costing your contributions towards maintenance of the shared areas.
Resale Value of Properties
It is common that UDS percentage is higher in a resold property which increases its market worth and thus attracts a number of interested buyers.
Participation in Community Work
Thus, through UDS, you can also participate in the various activities of the community, from voting to policy determination.
How to Calculate the Undivided Share of Land or UDS in Flats
Use the formula provided below to easily understand and calculate UDS:
[
\text{UDS} = \left({\frac{\text{Super Built-up Area of Each Unit}}{\text{Total Super Built-up Area Of All Units}}}\right)\times Total Land Area
]
A Sample UDS Calculation A Sample Quote UDS Calculator
For example, consider this scenario. You own a 3BHK flat and occupy a flat in a building which consists of 100 flats with the total built up area of the land being 30,000 squar feet. For these units only, the total built-up area is 30,000 and you can understand from the calculation which is derived from the measurement of your flat and is built up area that you possess, thus showing what your UDS is, i.e. what your share of the building comes to.
So for a 3BHK flat, it the figure looks like this:
UDS(3BHK) = (1200/81,000) x 30,000 =444 sq. ft.
They can make other calculations as well, then such calculation will be made considering you a separate entity i.e. irrespective of the above, this showing what your proportionate share is based on how big your apartment is.
UDS in Real Estate
There are several parameters in the property transactions where UDS is helpful such as, while paying maintenance fees and expenses, while exercising voting rights etc. UDS is not part of RERA guidelines but applies to some states with specific provisions. There are distinct issues involved in dealing with property so buyers should take appropriate guidance when entering into property transactions and it would be advisable to carry out reasonable investigations.
Selling Undivided Share of Property: Key Considerations
In some situations, UDS is sold as a fraction of the property rather than individual units. Areas worth noting are:
Ownership Rights
The subdivision of undivided shares when selling UDS allows the buyer to be able to own a particular percentage on the overall assets.
Shared Areas and Amenities
Holders of the UDS also own collectively all shared areas and amenities.
Legal Documentation
The sale of UDS includes a lot of paperwork like a sale contract and a share registration among others.
Responsibilities and Liabilities
Holders of the UDS jointly bear the obligation for upkeep of all communal space and facilities.
Resale Potential
UDS shares are transferable and can be sold but only if permission is given by the housing society or association.
Conclusion
UDS is a very important concept for property buyers and investors because it assists them to make informed decisions. At Dream Location, we are ready to help you understand the concept of UDS such that you will wish to make sensible decisions while buying properties. When you work with Dream Location, UDS becomes more than just an obscure piece of terminology, but rather a useful tool in aiding your use of property. Choose Dream Location for an effortless, clear, and beneficial experience in real estate.