- All you Need to Know about ‘Undivided Shares’ While Buying a FlatJuly 24, 2018
If you have taken a decision to buy a flat or apartment, you would have surely come across the term ‘Undivided Shares’. Do you really know what is meant by Undivided Shares?
When you buy a flat or an apartment, you are actually buying two things, one is the flat itself which is constructed in the property and the second one is the share of the land where the flat is constructed; Undivided Shares is the share owned by the property owner when you purchase a property.
Undivided Share is the portion of the land which is mapped to an individual apartment and registered in the name of the apartment’s owner(s). The sum of all undivided shares given to the apartment owners would be equal to the total land area of the Flat.
How can you calculate the Undivided Divided Share?
Typically, Undivided Divided Shares are calculated against percentage of the flat super built-up area to the total super built-up area of all flats, for e.g.
Individual flats super built-up area / Sum of all apartments’ super built-up are X total land area = Undivided shares
Key things to remember
Sometimes Buyers accept a lower share of land so that they can save some money on stamp duty and registration. In reality this is not a right practice. In longer run, say after 20 or 30 years suppose the building is damaged and forced for a re-development, the flat owners will have smaller amount of shares than what is due to them. The compensation what the owners will receive will be reduced as it will be paid according to the amount of the Undivided Shares they hold.
As the apartment gets aged, the building itself depreciates the value, but the Undivided Shares is the one which actually escalates. In short, the more Undivided Shares the better for you to earn in the longer run.
If you have an assigned car parking area that is even better. Because then your undivided shares are calculated like Undivided Shares of the property and Car Park land in Sq. Ft area. So it is important to make sure that the developer properly documents the car park in the flat owner’s name.
Hence, when you visit your builder next time, ask them about the undivided shares and the share of land you will be getting as this would be one of the key factor that will define the resale price of the property.
Legal team of Ladder Kerala, one of the most trusted and reliable builders of Calicut and Ottapalam, makes sure that you get a clear understanding about your Undivided shares and all your queries are addressed. Ladder Kerala offers premium residential flats and apartments in Calicut and Ottapalam.
For more details on the projects please visit : http://ladderkerala.com/