How an Easement Works
When you buy property, there might be a nearby landowner or business that needs access to portions of your land. They may need to pass through your property to get to their own property or conduct business. An easement is a legal ability to use someone else’s land for a certain purpose. In many cases, a transferable easement is listed on a deed or other legal documents. This is disclosed when buying the property. An easement exists if there was permission given for an activity to occur at some point. It can be granted by landowners and written and recorded at a county clerk’s office. It can also be implied as necessary without any written action. When registered and recorded, the easement becomes an encumbrance, or a claim, on the land’s title.
Example of an Easement
Suppose that Ms. Smith owns a tract of land that borders a national forest. The forest is a great place for hiking, climbing, and fishing. Mr. Scott, an avid hiker, lives next door to Smith, but his land doesn’t touch any of the national forest land. In order for him to access the forest, he has to walk or drive to a public entry point. This ensures that he avoids trespassing. Smith and Scott are good neighbors, so Smith decides to grant Scott an easement to save him some trouble. She has it recorded at the county clerk’s office. This easement allows all present and future owners of Scott’s property to cross Smith’s land to access the forest. The easement becomes a part of the deed for both properties. Smith could grant an easement to another person to do the same without adding it to her deed. In most cases, this type of easement would expire at a certain time or upon a certain event, such as the death of the person who benefits from it.
Types of Easements
Easements can be classified into two main categories: easement in gross and easement appurtenant. Easements in gross are given to people or companies for a specific purpose. If property ownership is transferred through sale or other legal methods, a new easement agreement must be made. Easements appurtenant are attached to the land, not the person. In other words, these easements will carry over when land is sold to a new owner. In addition to this classification, the following are some of the most common types of easements.
Right-of-Way Easement
Right-of-way is a type of easement that allows someone to travel across another person’s land to get somewhere else. It can be offered to one person, several people, or the public. This type of easement is attached to the property.
Utility Easements
Utility easements are the most common type of easement property owners have to deal with. These give utility companies the right to use a certain portion of the property.
Conservation Easements
Conservation easements occur when a landowner agrees with a land trust or government agency to limit the use of the property, for land or historic preservation. It must provide some sort of public benefit, such as protecting the water quality, scenic views, or wildlife habitats. In Washington, D.C., for example, about 6% of properties are protected by private historic preservation easements.
Prescriptive Easements
Prescriptive easements are created when someone has been using a portion of your land without your permission. This gives them the right to keep using your land, as long as the length of use meets certain requirements.
Easement by Necessity
These occur when someone has a legal right to use a section of your land, as long as there is a valid need for it. This often happens when there’s a home or property with no direct access to a road, except through another property.
How Easements Affect Homeowners
The landowner who grants an easement can’t build structures within a prescribed area surrounding it, and they also can’t use fencing to hinder access. Any activity that blocks the use of the easement is prohibited. Easements may also create problems for property owners if they aren’t aware that easements exist or know exactly where they are. For instance, a homeowner might install fencing, but then be forced by a utility company to take it down if it restricts access to something the company needs to get to.
How Easements Affect Property Values
The impact of an easement on the property value will depend on the degree of interference permitted by the easement, said David Reischer, Esq., real estate attorney and CEO of LegalAdvice.com, in an email with The Balance. For instance, an easement that permits regular and steady traffic across a parcel and that interferes significantly with the enjoyment of the property by the owner might have a significant negative effect on the value of the property. Then again, Reischer said, not all easements are bad, and some easements may actually increase the value of a property. If the easement provides a benefit to the community, it can actually enhance the value of all properties in the neighborhood. The other thing to remember is that although easements can affect property values, if you buy land that already has an easement, the land’s value already includes the easement. If someone buys an easement on your land at a later date, a real estate appraiser conducts a valuation of the property. The appraiser adjusts the value based on the rights conveyed and how the easement use might affect the property surrounding it. If the property is strictly residential, easements do not affect property value in most cases. In many situations, the easements are along the edges of the land and are only for utility management.
Looking Up Easements on a Property
Not every easement is included within property deeds. Some easements are recorded as part of public records. One simple way to identify easements is to get the property records from the county courthouse. If you don’t find anything, walk around the property you plan to buy. Look for stormwater drains, tire tracks, evidence of someone else using the land, or any other signs that an easement might exist. You can also ask the title company to give you a copy of any easements it has. Not every title company provides copies of recorded easements, but they are often required to notify owners that an easement exists. Easements are also not covered by title insurance. In some cases, easements are excluded on Schedule B of your title policy commitment or preliminary title report. In most cases, there is a note that includes where to find the documentation.
