One vital factor to consider when buying or selling property in Chicago is air rights. These are the rights to use and control the space above a property, and they can be valuable assets for real estate developers, investors, and property owners.
However, navigating the complex world of air rights transactions can be challenging, especially for those unfamiliar. In this article, you will know key things you need to know and understand air rights and how the air rights tax division in Chicago IL can help you with it.
Understanding Air Rights and their Importance
Before delving into the benefits, understand what they are and why they are valuable. Air rights, also known as development rights, refer to the legal right to control and develop the space above a property. They allow property owners to use the airspace above their buildings for various purposes, including adding floors, constructing a rooftop garden or terrace, or selling the rights to another party.
They are particularly valuable in densely populated urban areas where space is premium. They can be sold or leased separately from the land beneath them, providing additional revenue streams for property owners. However, selling air rights can also affect the surrounding community, such as blocking views or casting shadows on neighbouring properties.
The Benefits of Buying or Selling Air Rights
Buyers have a valuable opportunity to expand or build a new structure. By acquiring the rights above a neighbouring property, a buyer can build taller or broader than they would otherwise be able to under zoning regulations. Rent or sales can increase the property’s value and generate additional income.
In some cases, it may also be purchased to preserve the views or sunlight of the buyer’s existing property. This can be particularly valuable in neighbourhoods where views or access to natural light are highly sought.
Understanding the Legal and Regulatory Framework
Air rights transactions are subject to a complex legal and regulatory framework in Chicago, which includes zoning regulations, building codes, and property tax laws. It’s essential to work with an experienced air rights tax division in Chicago IL, who can help you navigate these rules and ensure that your transaction is legally sound.
Working with an Air Rights Broker or Attorney
When it comes to navigating air rights transactions in Chicago, working with an experienced air rights broker or attorney can be crucial. These professionals can provide guidance and expertise throughout the entire process, from identifying potential buyers or sellers to negotiating terms and ensuring compliance with legal and regulatory requirements.
An air rights broker can be particularly helpful in identifying potential buyers or sellers for air rights transactions. They have a broad network of contacts in the industry and can leverage their relationships to find the right fit for a particular transaction. They can also help to negotiate favorable terms for the buyer or seller, ensuring that the transaction is beneficial for all parties involved. Additionally, an air rights broker can provide valuable insights into the current market conditions, allowing buyers or sellers to make informed decisions about their transactions.
Wrapping up
Buying or selling air rights can be a valuable opportunity for property owners and buyers alike. Still, it is essential to thoroughly understand the benefits and risks involved before moving forward with a transaction. Working with an experienced air rights tax division can help ensure a smooth transaction while mitigating potential risks.
