What Percentage Of The Land Is Undivided?
When someone purchases a flat, they are given an undivided piece of the land. It has no physical limitations. If the apartment is going to be demolished or rebuilt, the undivided piece of land is used to determine how much compensation one would receive. Notably, it is a crucial factor that lending institutions take into account before approving a borrower for a house loan.
When someone purchases a flat, they often make an investment in both the building itself and the land on which it is situated. The portion of land that each apartment co-owner co-owns is known as the undivided share of land. It is one of the key elements in determining the property’s current worth in the event of a sale. Reselling the property is not permitted if one is not given an undivided part of the land on the agreement documents. Continue reading to learn about the specifics of how the undivided portion of land is determined in apartments:
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An undivided part of land is what?
A resident who owns a flat in a certain apartment is said to have an undivided portion of the land. Every time someone purchases an apartment, they pay for both the apartment itself and a certain amount of the land on which it was constructed.
Due to the lack of clearly defined borders, this area of land is known as an undivided portion of land. A Sale deed can be used to determine the worth of the property for resale with the aid of an undivided piece of land. Additionally, the owner will be reimbursed according to the undivided portion of property that he or she owns if the structure is damaged for any reason, whether natural or man-made.
The size of the structure and the number of flats play a significant role in deciding the undivided portion of the land. In addition, the type of property—2 or 3 bedrooms—represents the area that a person owns. Additionally, one of the criteria that lenders look for when approving a house loan application is an undivided piece of land.
How should the undivided portion of land in flats be calculated?
- It is fairly easy to determine the undivided share of land by applying a specified formula. Here is the equation:
- Formula for an undivided part of the land: Total land area divided by the square footage of each unit in the structure
Illustration:
Imagine there is a ten-unit building with four 1 BHK, four 2 BHK, and two 3 BHK units. You have a two-bedroom apartment there that is 800 square feet in size. While the one and three-bedroom units are 600 and 1,000 square feet, respectively. Assume the land is 10,000 square feet overall. The undivided portion of the land can therefore be computed as,
Total land area
4 x 600 + 4 x 800+ 2 x 1,000 = 7,600
Size of individual apartment = 800
The total area of apartment = 10,000
10,000 x 800 / 7600 = 1,053 sq ft (approx)
This implies that each individual will get 1,053 sq ft as an undivided share of land.
Conclusion
An undivided piece of land is therefore crucial when investing in any real estate purchase since the value of the building declines over time while the value of the land increases. Therefore, before signing the agreement documents. One should exercise extreme caution and double-check the price of the undivided part of land that the builder has offered.
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