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Legal Article Real Estate Help

How USL Protects Individual Buyer’s Rights

Looking for a new apartment flat? Surely you have checked your desired built-up area and other amenities offered with that. But have you checked the Undivided Share of Land (USL) promised and offered with your chosen property? With time, the structure of the building apartment gets old and depreciates in value, it’s the USL which keeps growing. Let’s discuss this important aspectin detail.

What is USL?

When a buyer invests in an apartment flat, he does not only spend his hard-earned money on the structure itself, but also a part of the land on which the structure has been built gets registered in his name. So, whenever you are buying a new flat or a resold one, be very sure of asking the details about this part of the land. The ownership of this part of the land which comes as a part of the deal is called buyer’s undivided share in the land or USL in short. Since the valuation of the apartment flat depends on the USL, one should be really careful about the clarity of it.

USL calculation

The calculation of USL can be done following a simple mathematical formula.

Multiply your individual apartment area (super built-up area) with the total land area of the project. Now divide the number by the sum of the total land area of all the apartments.

Each apartment’s super built-up area/addition of all apartment’s super built-up area x Total land area of the project.

Now if you are buying a 2BHK apartment flat, and the project has been built on a land of 2000 square feet and has five equal units, then 400 square feet of USL will be allotted in the name of each owner.

If the complex has different sizes of flats then your USL will be directly proportional to the size of your flat. Let’s take a look at how it’s to be calculated.

Suppose you are planning to buy a 3BHK flat in a housing complex which has a total number of 200 flats. There are 100 of 1BHKs, 50 of 2BHKs and 50 of 3BHKs. But the total land area on which the project has been built is 40,000 square feet. The super built-up area of a 1BHK is 500 square feet, 2BHK is 1000 square feet and 3BHK is 1500 square feet.

So, the total built-up area of the housing complex would be:

(100×500) + (50×1000) + (50×1500) = 1,75,000 square feet

So, as a buyer of a 3BHK in that society, your USL will be

1,500/175,000 x 40,000 = 340 square feet

Similarly, a 2BHK flat owner’s USL will be 228 square feet and the owner of a 1BHK will have 114 square feet as USL.

Here, the total land area includes the area on which the apartment structure is built along with the common areas such as vacant land, garden area, etc. within the complex in which the apartments complex is situated.

Importance and Implications of USL

Understanding the importance of USL is a crucial part when you are investing to buy an apartment flat in a housing society because it is your right to get the exact share. While making that investment one must check the buyer-seller agreement thoroughly as your future depends on it. In due course of time, the structure will turn old and the value will depreciate. The appreciation will be ensured by the USL only. If the builder is offering you a dedicated car parking area, make sure that the documentation includes your parking area as USL will be calculated based on that. When it comes to a co-operative housing society generally the USL is equal for all, irrespective of the floor index of the flats.

Now let’s take a look at the legal implications of the USL:

1. The agreement for sale must include explicit information about the USL.

2. Try not to settle for a lower USL than your actual share for a lesser price.

3. The housing loan will depend on the USL. In case of a resale property, the bank will ask the society for the share documents.

4. In the time of property registration and the sub-registrar will check the USL document

5. If the USL promised and mentioned are two different values, confront the builder.

6. In future, if the structure gets demolished for reconstruction or the land gets acquired by the government and the apartment is to be demolished, the compensation towards the owner will depend on the USL.

A well-informed buyer will always inquire about his USL as it decides the legality of the housing project. So, if you are planning to buy a new flat, do not just get fooled by the glamour of the advertisements or the facilities provided. Know your rights and get what you are paying for.

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