It may seem to many that buying a plot is worthier than buying an apartment. However, there are several benefits attached nowadays in buying this modern mode of residence. You may assume that the building will eventually get older and, so is the value of the apartment. On the contrary, its value increases with time for a specific reason. When you opt to buy a flat, you also get a share of that land where the structure stands. This is known as undivided share in the land (USL) of the home buyer. So, before investing in a property, you must be mindful and have clarity in the idea.
 
This ownership oh USL is always mentioned in the buyer-seller agreement either in terms of percentage of ownership or in a specified area. Do simple math to get the calculation right.
 

Understand about Undivided Share

Undivided share is calculated as the ratio of the size of one apartment to the total built-up area of all the apartments. This implies that if you own a flat, the sum of all the property holders USL is equal to the entire land size.

Remember that this formula is not applicable to co-operative housing societies, because here each member has an equal UDS, and is not based on their unit size.
 

Get the Calculation Right

  • This is your right to the property. The property’s worth is decided upon the USL, and hence you will have to do your math to get your rightful share. If your Persian calculation differs from that of the builder, you have rights to confront about it for rectification.
  • The legality of the structure also depends on whether the USL is in compliance with the floor space index that is permitted to the developer.
  • This is one of the criteria to avail home loan. The lender will check for the UDS while granting you a loan. If you are purchasing a resale property, the lender will check for the share certificate from the housing society as well.
  • The future is dependent on it. On the occurrence of any natural calamity, the buyer gets compensation based on the USL.
 

Whether to Opt for Lower UDS to Save Cost

While buying a property, you not only pay the structure stamp duty but also for the UDS. Therefore, at times home buyers agree for the lower UDS as it means lower stamp duty cost. However, you look at the long run it is always wiser for having a large UDS. This is because when you decide to part from the property, it will cost you even more for any of the reasons mentioned above.
 
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