Land records · Parcel maps · October 7, 2026
Transfer of Development Rights (TDR) Explained
How transfer of development rights works: owners in protected areas sell building rights to developers who use them for extra density in growth areas.
Transfer of development rights is a land use tool that lets a property owner in an area the community wants to protect, called a sending area, sell the right to develop their land to a buyer who uses those rights to build more in an area designated for growth, called a receiving area. The sending property is then restricted, usually by a recorded easement or covenant, while the receiving property gets extra density beyond base zoning. TDR programs are used to preserve farmland, forests, historic buildings, and environmentally sensitive land without public purchase. This page is general land-records background, not legal advice.
How TDR works
- Community designates sending and receiving areas.
- Sending owners receive development credits based on a formula.
- Credits are sold to developers, sometimes through a TDR bank.
- Sending land is restricted by a recorded easement.
- Receiving project uses credits for extra density.
Sending vs receiving areas
| Area | Role |
|---|---|
| Sending | Land to be preserved; development rights severed |
| Receiving | Area where extra density is welcome |
Records to look for
TDR transactions generate recorded documents, such as deeds of development rights, easements on the sending land, and certificates of transfer. Title searches on sending properties should reveal restrictions. See how to find deed restrictions.
TDR vs conservation easement
A conservation easement can be donated or sold to a land trust, often for tax benefits. In a TDR, the owner sells credits on a market to developers, and an easement restricts the land afterward.
TDR and density bonuses
The extra density in receiving areas is often structured as a density bonus available only with purchased credits.
Effects on value
Sending owners receive cash for credits but give up future development. Their land is usually valued for agricultural or open space use afterward, which can affect property taxes, sometimes alongside current use valuation.
Well-known programs
TDR programs exist in places such as Montgomery County, Maryland, the New Jersey Pinelands, and King County, Washington. Cities also use TDR for historic landmarks, allowing unused air rights to move to nearby sites.
Example
A farm owner in a sending area has 100 acres zoned for one house per five acres, earning 20 credits. A developer in a receiving area buys the credits and builds 20 extra townhouses. The farm owner records an agricultural easement prohibiting future subdivision.
Challenges
TDR programs need enough demand in receiving areas to make credits valuable. If base zoning in receiving areas is already generous, developers may not buy credits.
Buyer due diligence
Buyers of rural land should check whether development rights have been severed. Land without development rights may be limited to farming or open space.
Bottom line
Transfer of development rights lets owners in protected areas sell building rights to developers in growth areas, preserving land through recorded restrictions while allowing extra density elsewhere. Check land records for severed rights before buying rural land. Explore parcels via the Platbookmapper map.
Transfer of development rights FAQ
What is a TDR?
A transfer of development rights from a protected site to a growth area.
What is a sending area?
Land where development rights are sold and restricted.
What is a receiving area?
Where purchased rights allow extra density.
Are TDR restrictions permanent?
Usually, through recorded easements.
How do I know if a property sold its development rights?
Check recorded easements and deeds in a title search.