October 2, 2023

Y M L P-226

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Transfer of Development Rights – 5 Things to Know

2 min read

The term Transfer of Development Rights is not well-known among the younger crowds. However, landowners whose land have caught the attention of the Government, or are on the verge of being slated as an upcoming developing area, need to know more about this and in the process should be able to understand clearly the pros and cons of this legal procedure.

To put it in simple terms, Transfer of Development Rights allows for the smooth trading of land between the landowner and the Government for development purposes like widening of roads, construction of schools, playgrounds, and even metro projects. In the TDR program, the Government can take possession of land, either partially or as a whole, in exchange for development rights to be granted to the landowner.

Factors Leading to TDR

The main factor that led to the existence of Transfer of Development Rights was the failure of conventional zoning. The latter mainly concentrated on the acquisition of larger lands and down-zoning of agricultural areas, which proved to be expensive and impractical, thus reducing the development potential of the landowner’s property.

An Introduction to TDR

TDR is an innovative method of developing infrastructures like parks, playgrounds and other civic amenities in locations well suited for higher density development, away from lands that should be preserved. This involves two important terms, which are, “sending areas” and “receiving areas”. Specific preservation areas are called the former, whereas, specific development areas constitute the latter.

Meaning of DRC

The Development Rights Certificate is an integral part of the Transfer of Development Rights program. It makes available a certain amount of area to be given as compensation to the landowners whose land has been taken by the Government for development purposes.

The landowner however, can either keep the compensation area for himself or give it to any other person in need of the land for an agreeable amount of money.

Advantages of TDR

A TDR program, being a fast process, has many benefits. It ensures a smoother acquisition process, without any ambiguity, and better compensation facilities as well, helping the area develop at a faster pace.

In addition, the landowners who give away their land are entitled to get an area, the size of which is one and a half times more than the surrendered plot. Besides, TDR programs help create higher density neighborhoods. In addition, TDR also gives landowners the liberty to build additional floors in the building provided to them as compensation.

Disadvantages of TDR

TDR does come with a few drawbacks, however. In a TDR building, the old infrastructure is not demolished, rather, the new floors are constructed over it.

Sometimes the area is not well-maintained and redevelopment expenses would have to be borne by the occupant. Therefore, It is always better to check the compensation area before going ahead with the TDR program.

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