Interested in taking a flat? Do you know about UDS? Read on to find out more about it.
What is UDS:
When a person buys a flat, the homebuyer does not just pay for the structure alone, but also for a part of the land in the total structure. This ownership over land is known as a homebuyer’s undivided share in the land. It is also applicable to all the buyers in the structure. That piece of land, known as UnDivided Share (UDS) is registered on the homebuyer’s name at the time of registration.
Now let’s see how to calculate UDS(UnDivided Share):
Total land area * Size of Individual flat
Total area of all flats
Total land area is the land area on which the construction of the structure is done.
Size of individual flat is the area on which the homebuyer is getting the registration done.
Total area of all flats is the sum of all the areas in the structure on which the registration is/will be done.
With a quick example, let us understand how this is done.
Let us assume that the total land area of apartment construction is 1000 square feet, consisting of 5 flats, each of 200 square feet, i.e., each flat of same size. Then each owner will get 200 square feet UDS, since it is equal.
Let us assume if the sizes are different.
In this example, the total land area of apartment construction is 40,000 square feet with 200 flats, consisting of 100 – 1 BHK flats, 50 – 2 BHK flats and 50 – 30 BHK flats. Size of 1 BHK flat is 500 sft, 2 BHK flat is 1000 sft and 3 BHK flat is 1500 sft.
Total land area = 40,000 sft
Size of individual flat, let us consider for each size.
Total area of all apartments:
100*500 + 50*1000 + 50*1500 = 1,75,000
For 1 BHK flat, UDS will be as follows,
For 2 BHK flat,
40,000*1000 228.57 sft
For 3 BHK flat,
40,000*1500 342.85 sft
Let us see if the total matches,
100 * 114.29 + 50 * 228.57 + 50 * 342.85 = 40,000 sft
At the time of property registration, the buyer has to pay the stamp duty for both, the UDS and the structure. In some states such as Karnataka and Tamil Nadu, for instance, buyers of under-construction properties have to pay the stamp duty in two tranches. First, the property is registered in the name of the buyer, keeping in mind his UDS, referred to as “first ownership”. When the entire structure is complete, the property is registered for the second time, and this time the duty is calculated for the entire property value.