Kovats Real Estate School Practice Test

What can air rights be categorized as?

1. Sold or leased

2. Transferred permanently

3. Only leased

4. Only sold

The correct answer is: Sold or leased

Air rights can be categorized as sold or leased, which reflects the flexible nature of property rights associated with the space above land. When a landowner possesses air rights, they have the ability to either sell these rights to another party, allowing that party to use or develop the space above the property, or lease them, granting temporary use while retaining ownership. This versatility is pivotal in urban development, where maximizing space is often crucial. The ability to sell air rights can lead to significant financial benefits for property owners, particularly in densely populated areas where vertical construction is viable. Leasing air rights enables property owners to generate revenue without relinquishing ownership, effectively capitalizing on their real estate assets while meeting the needs of developers or businesses seeking additional space. This understanding of air rights encapsulates their commercial utility, illustrating why they can indeed be sold or leased rather than limited to only one of those options or permanently transferred without the option for leasing.