A commercial building owner in a major city sold the unused air rights above her five-story building to a neighboring developer who plans to cantilever additional floors over the original building. What term BEST describes this type of transaction?
Correct Answer
D) A transfer of development rights involving unused airspace
A transfer of development rights (TDR) allows the owner of a property with unused development capacity—including unused air rights—to sell those rights to another party. This is a recognized real estate transaction in many urban markets.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Tenancy in common is a form of co-ownership in which two or more persons hold separate, undivided interests in property without the right of survivorship. Each owner can hold unequal shares and can independently transfer their interest.
A freehold estate conveys ownership rights, while a leasehold estate grants the right to possess and use property for a specific period without ownership.
Riparian rights concern properties bordering flowing bodies of water (rivers, streams), while littoral rights concern properties bordering non-flowing bodies of water (lakes, oceans).
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In a Hawaii real estate transaction, a shoreline-adjacent property is inside the mapped special management area. What should the licensee remember?
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For the Hawaii salesperson state portion, a question compares condominiums, cooperatives, and planned communities. Which statement is correct?
- → For the Hawaii salesperson state portion, a condominium question distinguishes a unit from common elements. Which statement is correct?
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- → Wisconsin adopted the Marital Property Act in 1986, creating a system similar to community property. Under this law, property acquired during marriage is generally considered:
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