Air Rights
Definition and meaning of Air Rights in real estate.
Air rights are the legal rights to use, control, or occupy the airspace above a specific parcel of real property. These rights can be sold, leased, or transferred to another party, allowing for development above existing structures.
In more detail
Historically, landowners owned everything from the center of the earth up to the heavens, but modern laws have restricted this to allow for air travel. Air rights are particularly valuable in dense cities where developers want to build tall structures over highways, train tracks, or historic low-rise buildings.
When a developer buys air rights, they are often buying the 'unused development rights' from a neighboring property to build a taller building than zoning would normally allow. This is often done through transfer of development rights programs. Property owners must be careful when selling air rights, as it permanently limits the height of any future construction on their land.
Key facts
| Category | Legal, Titles & Closing |
|---|---|
| Also known as | Airspace rights, development rights |
| Common transaction | Transfer of Development Rights (TDR) |
| Key limitation | Subject to local zoning laws and FAA aviation regulations |
A developer buys the air rights of a historic two-story church next door to build a new apartment building that extends over the church's vertical space.
Frequently asked questions
Can a property owner sell their air rights and keep their land?
Yes, property owners can sever and sell their air rights to a developer while retaining ownership and use of the surface property.
Do air rights extend infinitely into space?
No, modern laws and court rulings limit air rights to the height necessary for the reasonable use and enjoyment of the land, subject to public aviation rights.