Get free Property Analysis Report
Here
arrow
arrow-btn
Propsoch
Search Properties
Compare Properties
Blogs
Services
About Us
whatsapp
BlogAre you buying land or thin air?

Are you buying land or thin air?

08/10/2022
blog-inner
The notion of proprietorship of housing in India can be traced back to ancient times, encouraging the exchange of property titles for the benefit of future generations. However, in contemporary times, there is a debate on whether this exchange truly conveys property rights or if it's merely an exchange of thin air.
Understanding the Concept
To illustrate this concept, consider the example of a developer, A, who sells a flat to Mr. B. The sale deed specifies key details, including the names of the transferor and transferee, the location, and flat description. Importantly, it should mention the Undivided Share (UDS) of the property, which is crucial for understanding the extent of ownership.
Calculating Undivided Share (UDS)
UDS is calculated by dividing the apartment's super built-up area by the sum of all apartments' built-up areas, multiplied by the total land area. In the example, it's essential that the Sale Deed mentions the UDS, which in this case is 514 sq. ft., to ensure buyers acquire a tangible asset for future generations.
Builder's Rights and UDS
The builder's rights over terraces and the addition of floors play a significant role in determining UDS. If the builder reserves the right to add more floors, it can increase the number of stakeholders, potentially diluting the UDS.
Parking Space and Ownership Rights
Flat buyers often have distinct parking spaces, which can be part of the apartment property ownership rights or a separate entity in their Sale Deed. It's crucial to clarify whether ownership rights are transferred to flat buyers or provided as a service with associated charges in their monthly maintenance.
Legal Framework and Challenges
The legal framework governing real estate transactions primarily relies on the Transfer of Property Act, 1882, among others. However, these laws did not anticipate modern-day transactions involving flat purchases instead of land acquisitions.
Ownership and Compensation in Unforeseen Circumstances
In the unfortunate event of government land acquisition or a natural disaster such as an earthquake, the question arises: who has the right to claim compensation or damages? If you have no share in the land, it may seem like you own nothing more than thin air.
Conclusion
In the complex world of property transactions in India, understanding the concept of proprietorship, calculating UDS, and considering various legal and ownership aspects is crucial for both buyers and developers.
Authored by: Anirudh Suresh, Advocate

What to read next

uwezr8fnoutxa700vtse.webp
08/06/2023
Expert Comparison of Properties in South Bangalore
For an expert comparison of properties in South Bangalore, empower your real estate decisions with o...
Read More
breno-assis-r3WAWU5Fi5Q-unsplash (2).jpg
08/10/2022
How do I identify a good developer?
Discover the crucial steps to identify a reputable real estate developer in our guide, "How to Ident...
Read More
zboicg1q.jpg
24/05/2023
Expert Review of Assetz Sun and Sanctum
Discover Assetz Sun and Sanctum, an exquisite residential project by Assetz Property. Offering metic...
Read More
Consult design expert
Design.svg
Consult Vastu expert
Vaastu.svg
Consult a Legal expert
Legal.svg
Consult a Market expert
Market Expert.svg

What to read next

uwezr8fnoutxa700vtse.webp
08/06/2023
Expert Comparison of Properties in South Bangalore
For an expert comparison of properties in South Bangalore, empower your real estate decisions with o...
Read More
breno-assis-r3WAWU5Fi5Q-unsplash (2).jpg
08/10/2022
How do I identify a good developer?
Discover the crucial steps to identify a reputable real estate developer in our guide, "How to Ident...
Read More
zboicg1q.jpg
24/05/2023
Expert Review of Assetz Sun and Sanctum
Discover Assetz Sun and Sanctum, an exquisite residential project by Assetz Property. Offering metic...
Read More
fb icon
linkedin icon
twitter icon
Sign up for our Newsletter
Stay in the loop with everything you need to know.
We care about your data in our privacy policy
We care about your data in our privacy policy