Property Easements: What Buyers Need to Know

When buying real estate, many factors come into play: location, price, condition of the property, and potential for appreciation. However, one often overlooked aspect of real estate transactions is the presence of property easements. Easements can affect how you use the property and, in some cases, its value. Understanding easements is crucial for an informed buyer.

What Is a Property Easement?

A property easement is a legal right that allows someone else to use a portion of your property for a specific purpose, even though you still retain ownership. Easements are typically tied to the property (not the owner) and remain in effect when the property changes hands.

For example, suppose a utility company has an easement to run power lines across a property. In that case, the new owner must honor that easement. Easements can be beneficial or burdensome, depending on their nature and use.

Common Types of Property Easements

There are several different easements, each serving a specific function. The most common types include:

1. Utility Easements

These are among the most common easements. Utility companies—such as those that provide electricity, water, gas, sewage, or cable—often have the right to access parts of your property to install or maintain equipment. These easements usually run along property lines and do not interfere with daily use. However, they may limit where you can build fences, pools, or extensions.

2. Right-of-Way Easements

This type allows another party to pass through your property. It is common in rural or subdivided areas where one property may not have direct access to a public road and must travel through a neighbor’s land to reach it. Right-of-way easements can be exclusive (only the holder has the right to use them) or non-exclusive (others can also use the easement).

3. Ingress and Egress Easements

These provide the right to enter (ingress) and exit (egress) a property. They’re often included in right-of-way easements but can apply separately in complex property arrangements, especially in commercial or multi-unit residential developments.

4. Prescriptive Easements

Prescriptive easements occur when someone uses a portion of land without the owner’s permission in an open, notorious, continuous, and hostile manner for a legally defined period. Over time, they may gain a legal right to continue using that land. This is similar to the concept of “adverse possession.”

5. Easements by Necessity

These are granted when a property is landlocked and needs access to a public road. Courts may establish an easement by necessity to allow access, even if one wasn’t formally recorded in the past.

6. Private Easements

These are agreements between two private parties—such as neighbors—typically documented in property deeds or recorded agreements. They can be tailored to any number of uses, like shared driveways or fences.

Why Buyers Should Care About Easements

While some easements are benign or even beneficial, others can significantly impact how you use your property. Here are several reasons why easements matter to buyers:

1. Usage Restrictions

An easement can limit how you use a portion of your property. For instance, if a utility easement runs through your backyard, you might be restricted from constructing a shed, planting trees, or installing a pool.

2. Property Value

Certain easements—especially prescriptive or access easements—may deter potential future buyers or reduce property value. Privacy can become a concern if someone else has regular access to a part of your land.

3. Legal Disputes

Disagreements over easement use can lead to neighbor disputes or even lawsuits. For example, suppose a neighbor claims a prescriptive easement you’re unaware of. In that case, it may result in an unwanted legal battle.

4. Maintenance Responsibilities

In some cases, easement agreements specify who must maintain the easement area. This can lead to unexpected costs, especially for shared driveways or access roads.

How to Identify Easements

Before purchasing a property, it’s critical to investigate any existing easements. Here’s how:

1. Title Search

A standard title search—usually conducted by the title company—will uncover recorded easements. Review the title report carefully and ask your real estate agent or attorney to explain unfamiliar terms.

2. Survey

A land survey can visually identify easements on a property, especially those used for access or utilities. Surveys show boundaries, structures, and any recorded easement paths, which can help you understand how the land is used.

3. County Records

You can check easement documents at your local county recorder’s office. This may be necessary if you’re looking for more details or the easement wasn’t listed in the title report.

4. Seller Disclosures

In many jurisdictions, sellers are required to disclose known easements. However, not all easements, especially older ones, may be known or remembered, so don’t rely solely on disclosures.

What to Do if an Easement Affects Your Purchase Decision

If an easement concerns you, you have a few options:

1. Negotiate

You can negotiate a lower purchase price depending on the type of easement and its impact. If it significantly affects your intended land use, it’s worth discussing with the seller.

2. Consult a Real Estate Attorney

Some easements are complex and may require legal interpretation. A qualified attorney can help you understand the legal implications and advise whether the easement poses any future risks.

3. Title Insurance

Ensure your title insurance policy covers potential issues related to easements. Some policies may exclude unrecorded easements, so discuss this with your title company.

4. Walk Away

If an easement negatively affects your plans for the property—such as building a home addition, installing a pool, or securing privacy—it may be best to walk away and find a more suitable property.

Final Thoughts

Easements are a regular part of real estate, and many properties have them. However, the key for buyers is awareness and understanding. Knowing what easements are attached to a property—and how they might affect your rights as an owner—can prevent future headaches and financial surprises.

Before signing on the dotted line, make easement research a routine part of your due diligence. With proper preparation, you can confidently move forward in your property purchase.

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