Transfer of Development Rights Agreement

Transfer of Development Rights Agreement

A Transfer of Development Rights Agreement (TDR Agreement) is a legal instrument that enables property owners to transfer the development potential of their land to another property or area. This is typically employed in land use planning to preserve certain areas, such as agricultural land or environmentally sensitive regions, while allowing for increased development in other designated areas.

In a TDR Agreement, there are usually two key parties involved: the sender, who is the property owner of the sending site (the land being preserved), and the receiver, who is the property owner of the receiving site (the land designated for increased development). The sender transfers their development rights, which often results in restrictions placed on the sending site that prevent or limit future development. This helps to maintain the intended use of the land, such as preserving open space, wildlife habitats, or agricultural activities.

Conversely, the receiving site gains the ability to develop beyond what is normally permitted under zoning laws, allowing for larger buildings or increased density. This process is often governed by local regulations and can include specific criteria that must be met for both sending and receiving sites.

For example, in a municipality focused on urban development, a farmer might sell their development rights to a developer looking to build a high-rise apartment complex in a nearby urban area. The farmer retains ownership of the land but is restricted from developing it, while the developer is allowed to exceed local zoning limits for their project due to the acquired rights.

Overall, Transfer of Development Rights Agreements provide a mechanism for balancing development needs with environmental and community preservation goals, allowing for sustainable growth while protecting valuable land resources.