Dictionary of Real Estate Terms: development rights
development rights
legal entitlement to improve a piece of land. Such rights are conferred by the local authority having the power to regulate land use in the jurisdiction. Development rights may also be restricted by covenant placed in the title to the property. Rights may be held by the landowner or exchanged or sold to another entity. Compare with transfer development rights.
Example: Being devoted nature advocates, the Joneses dedicated the development rights to their beachfront property to the Nature Conservancy. Neither the Joneses nor the future owners can legally develop the land without permission from the Conservancy.
