Mixed-Use Development: Structuring Air Rights Condominiums and Other Common Interest Community Regimes

Optimal Legal Structures and Core Drafting Challenges; Minimizing Potential Warranty Claims

Recording of a 90-minute premium CLE webinar with Q&A

Conducted on Tuesday, November 10, 2020

Recorded event now available

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Program Materials

This CLE webinar will provide counsel with a review of key legal challenges and approaches for structuring documents for condominiums and other common interest regimes in mixed-use projects. The panel will discuss difficult legal issues involved in governance of these projects.


Mixed-use projects combine commercial and residential development and construction, leaving counsel with unique zoning, financing, and marketing challenges.

Counsel must address the zoning restrictions and options of subdivision of air rights and horizontal developments. Air rights may be divided into separate units of real property created by the horizontal subdivision of real estate. Two or more parties may possess separate ownership interests or rights of control over real property located in different tracts of horizontal airspace over the subjacent land. There can be more than one owner of the stack-use property, just as one can subdivide and develop side-by-side on a surface subdivision.

The determination of air interests that can be transferred is a critical issue. Development rights in airspace may be sold or transferred to more adjacent zoning lots into one new zoning lot so that the unused development rights in one lot may be shifted to the other, even when the individual parcels are separately owned.

The webinar will provide valuable insight regarding the developer's legal challenges and approaches associated with structuring and operating mixed-use projects, including zoning and administrative challenges and opportunities. It will also delve into the preferred legal structures for ownership and development of air rights and horizontal mixed-use projects.

Listen as our panel of experienced counsel reviews structuring documents for condominiums and other common interest community regimes in mixed-use developments. The panel will discuss the complex legal issues involved with different types of projects.



  1. Zoning considerations and options for subdivision of air rights and horizontal developments
  2. Types of common interest developments: condominiums, planned communities, and reciprocal easement agreements
  3. The air rights condominium as an ownership and development vehicle
  4. Structuring air rights condominiums and planned communities to address the challenges of mixed-use development
  5. Addressing the for sale residential component of a mixed-use development
  6. Defending builder contracts from purchaser termination claims
  7. Planning for transition and minimizing potential warranty claims
  8. Dealing with fractured or failed developments


The panel will review these and other key issues:

  • Evaluating the benefits and challenges of using condominium regimes as compared to more traditional legal structures, such as legal subdivisions or ground leases
  • Identifying core drafting issues, including association governance, use restrictions, enforcement, and mortgagee protections
  • Planning for and minimizing potential unit and common element warranty claims


Diamond, Robert
Robert M. Diamond

Senior Counsel
Reed Smith

Mr. Diamond has practiced real property law in Virginia, Maryland and the District of Columbia for 38 years, with...  |  Read More

Spendlove, Gretta
Gretta C. Spendlove

Durham Jones & Pinegar

Ms. Spendlove practices in the DJP Real Estate Section, with a focus on real estate, corporate law, and business...  |  Read More

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