Certified Residential Appraiser Practice Exam

Which of the following is true about air rights?

1. They can only be acquired through government compensation

2. They typically include the rights to construct above a property

3. They cannot be sold separately from the land

4. They revert to the government after a certain period

The correct answer is: They typically include the rights to construct above a property

Air rights refer to the property rights concerning the space above a parcel of land. The correct assertion is that these rights typically include the rights to construct above a property. This means that the owner of a parcel can develop vertically, which can be particularly significant in urban areas where land is scarce. This ability to build above existing structures allows for the maximization of property value and efficient land use, especially in densely populated locations. Ownership of air rights can often be separated from the land itself, allowing them to be sold independently. This is not only beneficial to landowners looking to capitalize on their property but also creates opportunities for developers wanting to utilize vertical space in urban environments. While air rights can sometimes be limited by zoning regulations, they are fundamentally understood as being rights that can be exercised above the real estate. Regarding the other choices, government compensation is not a prerequisite for acquiring air rights, and they may indeed be sold or transferred independently of the land. Additionally, air rights do not automatically revert to government control after a certain time unless specified by regulatory policies or easements. Understanding this concept is critical for appraisers, particularly in assessing property values in metropolitan settings where air rights can significantly influence market dynamics.