Valuation of special declarant and development rights

The development rights and special declarant rights of builders of condominium and cooperative apartments have become a collateral value in the financing of construction under the Uniform Common Interest Ownership Act. These rights give developers the option of using certain common areas for future construction of additional units. The true value of these rights, however, is not always accurately measured. The result is the loss of some of the value of a particular project when it is assumed by another party.