This thread is to discuss and understand some of the fine prints and the invisible concepts that are part of a RE buy. recently i have been rolling this concept of residual uds in my mind for sometime. when i talked about this, to a few of my friends, none of them was ready to accept the concept nor were aware. so what could be the actual meaning.. A hypothetical example-- let us say we buy a flat in a complex of 10 grounds..10 grounds x 2400 = 24000 sq.ft..and let us assume there are only 3 bhk say 20 -all of them are 1500.. so if we were to get a uniform uds of 1050..that is around 24000-21000 - where there is aournd 3000 sq.ft left out. now suppose if there is a small park, a gym and all this are part of this complex, but the property owner holds the remaining 3000.. so this becomes a residual uds.. and again i recently came across a highlight of the project and there it was stated that * terrace rights are not retained by the builder.. so in both the cases, in future developments and expansion there is a chance of the builder getting a bigger pie..(if the terrace rights are retained by the builder..) many may argue that it is not the case, but i know of a builder who still holds the terrace rights for the past 10 years and refuses to budge unless the owners of the apartment are willing to pay a tidy sum... just thinking out loud, on this ..will write more later..
The serious implications of residual uds is not discussed, or exposed in tn..but there is a case that is known to me, where the builder has been holding a piece of land in the apartments, and is now bargaining for 16,500 sq/ft for returning it back to the group of owners, while they bought it at 3200 sq/ft.
Interesting topic, Shanvy. Actually there is something called as TN Apt Ownership Act, 1997. There are set rules on this. Builder keeping UDS was prevalent in olden days. Now it is totally illegal. UDS now under this act has to be equally divided by built-up area. Most builders use up 100% FSI. So there are not many issues. But again we have to be careful esp in JV cases, where many small builders and land owners do have illegal stuff. Coming to terrace rights, under this Act it is totally illegal for builder to build extra units with approval from owners. If all UDS is split up there is nothing left for builder to build. A simple call to CMDA will stop any attempt by builder. Terrace rights are foreign terms as far as Chennai is concerned. India Bulls is one builder who I have heard trying to implement this terrace right policy years ago on their OMR project. May be they corrected it by now.
