An easement grants an individual the right to use a portion of another person’s land for a specific reason. In exchange, the property owner charges a fixed fee from the other party. However, they may face issues in the future, as easements can affect the resale value of the property.
Easements can be permanent or on a term basis; however, permanent easements are more popular in the real estate market. Out of 24,349 easements that have been closed, almost 86.8% of them have been permanent.
⚡3 Key Points of an Easement
- An easement is an agreement between two parties where one individual can access another’s property for a fee.
- Utility companies usually resort to easements to provide resources like water, power, and more.
- A change in ownership of the property doesn’t terminate an appurtenant easement.
What Is the Purpose of an Easement?
Typically, the purpose of an easement is to grant the dominant tenant a certain level of access to someone’s property. It is an important document, especially when two parties are in an interdependent relationship. Here, one of them relies on the other for their needs.
There are various instances where easements come in handy:
- If your house is blocked from the main road, an easement can help give another person’s property for a fee to access the road.
- It helps utility companies provide and expand their services in the region.
- It gives access to third parties to use private land near the forest, which attracts tourists for hiking and exploring wildlife.
Various types of easements help organizations or individuals solve land issues and fulfill their needs.
Types of Easements in Real Estate
Here are the different types of easements:
- Necessity Easement: It helps owners whose properties are on the same land, and one of them is landlocked. Here, the property owner, who has access to the main road, and the dominant tenant enter into an agreement. This way, the landlocked property gets access to the road. The agreement is only valid for signed owners.
- Appurtenant Easement: It follows the same concept as a necessity. Moreover, this agreement is still valid even if there is a change in the ownership of either property.
- Prescription Easement: Suppose someone has been openly using a part of the property that doesn’t belong to them for several years. They can then apply for an easement by prescription.
- Gross Easement: It comes into the picture when the property needs access to water, power, sewer, gas, and more. It can be transferred with the change of ownership of the property. Moreover, if the company’s ownership changes, the agreement can be prolonged.
The rules for various easements can differ from state to state. You have to look into the limitations and terms of your state before signing an agreement.
Easement Examples
Let’s look at an example to better understand the types of easements.
Let’s say that John has a piece of land with a beach on one side and a main road on the other. John splits the land and builds two properties. However, the new property will not have access to the main road.
Now, John sells the new property to Jesse. However, the new property is landlocked and needs access to the main road. For this, Jesse will sign a necessity easement with John, which will allow Jesse to use John’s driveway to access the main road.
As John has split the land, Jesse’s property has access to the beach. If John wants to access the beach, the appurtenant method can help him. John can sign the appurtenant easement with Jesse, and he can access the beach.
Let’s say Jesse has been using John’s garden for years, and John has never raised any objection. However, one day John denied access to his garden to Jesse. So, with prescription, Jesse can easily get access to the garden.
Over time, the new property faced electricity issues, which affected the value of the property. With the gross agreement, John and the utility company can install the electricity pole in John’s backyard.
How to Create or Remove a Property Easement
To create and remove an easement, you need to hire an attorney. Here are the steps you need to take:
Create an Easement
- Contact an attorney
- Get it documented
- Clear the terms with other parties
- State its purpose
- Finalize the fees
- State the area of land
- Discuss the rights and duration
- Close the deal
Remove an Easement
- Check the agreement’s validity
- Get the agreement notarized
- Discuss the agreement with the other party and sign the document
- Get the easement recorded on the property deed
How Long Does Easement Last?
The easement type determines its duration. If the owner has a perpetual easement, it can last forever. The owner of the property or another party can terminate the perpetual agreement. On the other hand, a term easement would last for the period specified in the agreement.
Should I Buy a Property With an Easement?
The answer to this question depends on your needs. You can contact your attorney for advice. If you have no issues with the terms of the easement, you can buy the property. However, remember, easements do affect the resale value of the property, so you may have trouble selling it in the future.
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Frequently Asked Questions
What are the requirements for easements?
You can choose the type based on your requirement. During the process, you will require basic identification documents.
Who pays for easements?
The company or the person who wants to use the land pays for the easement.
Who is responsible for an easement?
The company or the person who is using the land is responsible for an easement. The dominant estate will maintain the easement. If any thing is damaged, then they have to pay for the repair costs.
