Final answer:
Yes, a new buyer can purchase only surface rights if subsurface and air rights have been separately resolved. Property rights, once clearly defined, can be divided and owned individually. This flexibility is essential for the effective management and allocation of land according to Coase's theory on property rights.
Step-by-step explanation:
Is there a scenario in which a new buyer could buy only surface rights to a property? The correct answer is B) Yes, if the subsurface and air rights already have been resolved. This situation can occur when property rights are clearly defined and separate. It involves the division of property into surface, subsurface, and air rights, which can be individually sold, leased, or owned.
According to Nobel laureate Ronald Coase, the resolution of property right disputes requires a clear definition of ownership. Only when these property rights are distinctly established and assigned, can the parties involved appropriately manage and bear the costs associated with their property interest.
In practice, a real estate buyer might only purchase surface rights if the subsurface rights, such as those to minerals or oil, have been previously sold or leased to another party. Similarly, air rights above the property might be sold separately for purposes such as building overpasses or for the rights to erect signage, as seen in urban environments.
The division of property into these distinct layers allows for the flexibility in ownership and utilization of land, which is increasingly common in densely developed areas.
It's worth noting that the nature and extent of these rights can vary significantly depending on local laws and regulations, which determine how property rights are allocated and enforced.