Transfer of Development Rights – 5 Things You Should Know
The term Assignment of Development Rights is not well known among the younger crowds. However, landowners whose land has come to the attention of the government, or is about to be listed as an upcoming development area, need to know more about this and in the process be able to clearly understand the pros and cons of this legal development. process.
Simply put, the transfer of development rights allows for the seamless trade in land between the owner and the government for development purposes, such as road widening, construction of schools, playgrounds, and even metro projects. Under the TDR program, the Government can take possession of the land, either in whole or in part, in exchange for development rights to be granted to the owner of the land.
Factors Leading to TDR
The main factor that led to the existence of the Assignment of Development Rights was the failure of conventional zoning. The latter concentrated mainly on the acquisition of larger lands and the zoning of agricultural areas, which proved to be costly and impractical, thus reducing the development potential of the landlord’s property.
An introduction to TDR
TDR is an innovative approach to developing infrastructure such as parks, playgrounds, and other civic services in locations well suited for higher-density development, away from land that must be preserved. This involves two important terms, which are, “shipping areas” and “receiving areas”. The specific areas of preservation are called the former, while the specific areas of development constitute the latter.
Meaning of RDC
The Development Rights Certificate is an integral part of the Development Rights Transfer program. It makes available a certain amount of area to be given as compensation to landowners whose lands have been usurped by the Government for development purposes.
However, the owner can keep the clearing area or give it to anyone else who needs the land for an acceptable amount of money.
Advantages of TDR
A TDR program, being a quick process, has many benefits. It ensures a smoother, unambiguous procurement process and also better clearing facilities, which helps the area to develop at a faster pace.
In addition, landowners who cede their land have the right to obtain an area one and a half times larger than the ceded lot. In addition, TDR programs help create higher density neighborhoods. In addition, TDR also gives owners the freedom to build additional floors in the building that is provided to them as compensation.
Disadvantages of TDR
However, TDR has some drawbacks. In a TDR building, the old infrastructure is not demolished, but the new floors are built on top of it.
Sometimes the area is not well maintained and remodeling costs must be borne by the occupant. Therefore, it is always best to check the offset area before proceeding with the TDR program.
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