Once you decide to buy a house, you should consider many factors and not just jump to a final decision. Consider the type of house, available space, and neighbourhood you want to live in while choosing a house. Now that buying homes in India isn’t that affordable, financing options should also be considered.
Regarding financing, home buyers also check the different types of loans from various lenders for purchasing a home. They approach a reputable realtor who provides some of the best quality projects at the most affordable rates. You must have exceptional negotiation skills once you plan to work with a realtor. To stand on your negotiation grounds, you must be familiar with your rights as a buyer.
In the real estate sector, TDR (transferable development rights) plays a significant role. Let’s understand what it means.
What is TDR in Construction?
Transferable development rights are zones that protect specific lands with a conservation value. Such grounds include farmlands, cultural and natural resources, and open community lands.
Concerning real estate, transferable development rights refer to rights that enable the developers to develop over the permitted floor space index (FSI). It is done in respect of a neighbourhood or a specific land upon which the construction will occur. This offers protection to the landowners and also benefits them in several ways.
Benefits of TDR for Landowners
Through transferable development rights, landowners who do not want to develop a specific part or all of their land will be eligible for receiving certain compensation. These landowners will get an option for legally dividing their development rights with the municipal corporation. Notably, fair compensation should be given to these landowners.
Moreover, the value of such properties will also be enhanced once the transferable development rights are levied. Without TDR in real estate, using the land for regrowth or redevelopment is almost impossible.
How Does TDR Work?
The TDR is a certificate that a property owner receives from the municipal corporation suggesting that the specific property is available for public use. Some prominent public services for which the property can be used include roads, schools and gardens. The owner may also gain some reserved rights over the upcoming property.
TDR allows the transfer of a person’s property to municipal corporations using the certificate. Not only does it help shorten the transfer process, but it also helps in acquisition. To better understand TDR, let’s consider an example.
Let’s take the example of Mumbai. This urban city already has developed areas like Juhu, Andheri and Colaba. The rapid urbanisation and growth across the city have led to congestion. The municipal corporation is now shifting its focus to less developed areas like Mira Road and Navi Mumbai to promote construction. Through TDR, properties are being constructed on the lands turned in by the owners in return for the reserved rights. This helps in promoting growth in Navi Mumbai and booming the real estate sector.
