What Is an Easement and How Can It Affect Me?
When purchasing a property, it’s important to know exactly what you’re getting—especially when it comes to easement rights. Easements are rights to use a piece of property for a particular purpose. Knowing how easement rights can affect you can help you make a better and more informed decision when it comes to buying or selling real estate.
What Is an Easement?
An easement is a legal right to use someone else’s property for a specific purpose. Easements can be granted to individuals or entities such a utility companies. Easements are created either through an agreement between the two parties or through a court decision.
Types of easements include:
- Right of way—allows a person or organization to pass through your property
- Utility easements—allows a utility company such as an electric company to use or access part of your property
- Party wall—allows a neighbor to build an adjoining wall to your property for support
Once an easement has been created, it can be sold, transferred, or terminated by agreement between the parties or court order.
How Can Easements Affect Real Estate?
Easements can either help or hinder your ability to use a property. As a potential buyer, you should always consider how an easement will affect your use of the property. Variables to consider:
- The purpose of the easement
- Whether the easement is recorded
- How much of the property is affected by the easement
In some cases, an easement can increase the value of a property, for example, if it gives you access to a public lake or other recreational area. On the other hand, it could decrease the value of a property if it limits your use.
What Should I Do If I Encounter an Easement?
If you encounter an easement, the first thing you should do is ensure that the easement is valid. Check the title records or contact a real estate lawyer to verify the rights associated with the easement.
Then, you should consider the type of the easement and its effect on your agreed use of the property. For example, if the easement grants a right of way to someone, this could have an impact on your privacy. If the easement gives a utility company access to your property, this could affect your plans to subdivide the property or develop it in a certain way.
What If I Want to Negotiate an Easement?
If you’re the holder of an easement, you may be able to negotiate certain terms with the property owner. Consider all the potential benefits and drawbacks to determine if negotiating is the right move for you.
In general, property owners are more likely to negotiate with you if it increases the value of their property or allows them to use the property in a different way. If the property owner agrees to negotiate, hiring a lawyer can help ensure that all of your rights are protected.
Key Takeaways
- An easement is a legal right to use someone else’s property for a specific purpose
- Easements can affect both buyers and sellers of real estate
- Make sure to thoroughly investigate the effect of an easement when purchasing or selling property
- You may be able to negotiate with the owner of the property to alter the terms of an easement
Whether you’re a buyer or a seller, it’s important to understand exactly what an easement is and how it can affect you in a real estate transaction. Knowing the rights and restrictions associated with an easement can help you make an informed decision about a property purchase or sale.