Undivided Land Share: Why It Is Important When Buying An Apartment?

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Not many property buyers are interested in knowing the undivided land share when purchasing an apartment. In fact, there may be very few people who even know what it means.

Undivided Land Share: Why It Is Important When Buying An Apartment?
The general questions that come to the mind when buying an apartment include: is the project approved by banks or by the relevant authorities? carpet to super built-up area; cost per square feet; vaasthu compliance etc.

But, seldom does one ask for Undivided Land Share. Perhaps, because one may have rarely heard that land can be divided by the apartment owners.

What is Undivided Land Share?

Let's say 100 apartments have been built on an area of one acre land. Now, one acre land is typically 43,560 square feet. Now, if this land has to be divided then each individual will get an approximate area of 435.60 square feet as the undivided portion of land (43,560 square feet/number of apartments).

This is his undivided share in the land.

In the major cities nobody bothers about the undivided share of land, as it is assumed that the apartments will in any case fetch them value. When the apartments become old, there can be redevelopment of the same and the buyer could get another new apartment. But, what happens when there is an Act of God, say like an earthquake. Circumstances may warrant that the land be distributed among the flat owners.

As of date, this is very rare and one cannot remember any precedence of this nature. Nonetheless, the best thing would be to go for an apartment, which has very high undivided land share. The best way would be to go for projects with very high open spaces and less apartment.

This is the only way an individual can get a higher portion of undivided land share. Let's give an example: In the above case, if you see that the builder has given more of open space then he would build just 50 apartments on one acre of land (43,560/50). What this means that the undivided land share would increase to 871 sq feet.

If there is a problem and the land has to be shared, then each individual has a right to approximate 871 square feet. So, always go for more open spaces and less apartments.

What happens in case of resale of an apartment?

In case of resale of an apartment the rights on land are transferred to the new buyer. What this means is that the original rights which the original apartment owner has is systematically transferred to the subsequent owners. So, the new buyer owns the undivided share of the land.

Conclusion 

The undivided share in the land would be mentioned in your sale deed. make sure it is there or else, you may not have your share in the end. Look for a developer that offers large open area and less number of apartments. In this way it would increase each ones land entitlement.  

GoodReturns.in

Read more about: land
Story first published: Saturday, February 21, 2015, 6:39 [IST]
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