A complex and perplexing part of real estate ownership is easements. It is essential to comprehend easements and how they affect property rights when purchasing or selling real estate. Having worked as a real estate lawyer for more than 20 years, I have witnessed firsthand how easements can affect a property’s marketability, ownership, and development. This blog will discuss easements, their effects on property owners, and practical examples from my work to highlight the intricacies involved.

What is an Easement?

Fundamentally, an easement is someone else’s right to utilize a section of your land for a certain function. Unless they are removed by a court order or a contract, easements are listed in the property’s title and may remain there permanently. Although easements come in a variety of forms, some of the more popular ones are as follows:

• Access Easements: For example, if one property is landlocked, the neighboring property may grant them access to a public road. 
• Utility Easements: Allowing utility companies to install and maintain sewer lines, pipes, or power lines on your property. 
• View Easements: For example, someone may have a right to prevent you from building above a certain height to preserve their view. 

In essence, an easement allows others to exercise certain rights on your property, which can affect how you use or develop your land.

How Do Easements Affect Property Owners’ Rights?

Easements may restrict your use of your property by giving another party specific rights over it. For example, a utility or access easement may prevent you from building or changing particular areas of your property. As a real estate lawyer, I’ve dealt with numerous situations where clients were not aware of easements that affected their property, which resulted in disagreements or unpleasant surprises after they had already bought their property.

Example: The Water Line Easement

One of the most significant cases I’ve handled involved a commercial property owner in the Bay Area. My client owned a motel and wanted to redevelop it into a shopping center. However, he discovered that a massive water main ran underneath his property, serving multiple cities. The last thing he wanted was to damage this water line during construction. The issue arose when the utility company marked the location of the water line incorrectly. Despite following the guidelines provided by the water company, my client accidentally ruptured the pipe during the construction process, leading to a major water supply disruption.

The case turned into a lawsuit, with the water company claiming that my client was at fault. However, after significant litigation, we proved that the mistake lay with the water company’s misinterpretation of their easement rights and the improper marking of the line. The court ruled in our favor, and my client was not responsible for the damage. This case highlights how easements, whether recorded or not, can significantly affect property owners’ rights and responsibilities.

Why Property Owners Need to Review Easements Before Buying

Examining the title company’s preliminary title report is crucial when buying a property. Any recorded easements on the land will be listed in this document. As a real estate lawyer, I strongly encourage clients to do this since easements can have a big influence on their property designs. For example, if there is a sewer line easement running through the middle of the property, it could affect future development or use. It’s important to assess:

• Where the easement is located 
• Who has the right to use the easement 
• What the easement allows them to do 

One key issue many property owners overlook is whether there are prescriptive easements, easements that aren’t recorded in public records but can be claimed over time through continuous use. If a neighbor or other party claims an easement but it’s not recorded, they may still be able to establish legal rights in court.

Example: Easement Claims Post-Purchase

I’ve had several clients buy properties only to later discover that a neighbor claims an easement over their land. These claims may not show up in the title report because they’re based on use rather than written agreements. These post-purchase surprises can be costly and difficult to resolve. For example, if a neighbor suddenly claims the right to walk across your property, it’s important to know your legal rights and options for negotiating or contesting such claims.

How Easements Affect Property Marketability

The value and marketability of a property can be greatly impacted by easements. A property’s marketability and attraction to potential buyers may be diminished if there are easements restricting its usage or development.

• Recorded Easements: For example, if a property has an easement for access running through the front yard, potential buyers may be deterred because they might find it undesirable to have another person walking or driving across their land regularly. 
• Conservation Easements: Due to these easements, property owners are unable to develop specific areas of their land. The ability to sell or develop a property may be severely limited if it is subject to a conservation easement, which requires the land to be maintained in its current state (for example, as a forest or wetland). 

Strategy Law’s Approach to Negotiating Easements

At Strategy Law, we assist clients in negotiating both new easements and modifications to existing ones. Assessing the client’s needs, figuring out their goals, and negotiating agreements that safeguard their property rights are all key parts of the process. This often includes:

• Reviewing the Easement Document: We carefully examine the easement terms, including the location, the scope, and the rights it grants to other parties. 
• Negotiating Terms: We work with opposing parties to ensure that our clients’ interests are well represented and that the easement terms align with their goals. 
• Drafting the Easement Agreement: If necessary, we draft new easement agreements or modifications to existing ones to ensure that our clients are fully protected. 

Example: Negotiating Easement Terms for Property Development

In another case, I worked with a commercial property owner in San Francisco who needed to negotiate easement terms for an access road running through his land. The easement was crucial for the property’s development, and I helped him negotiate favorable terms, including access rights and the location of the easement, to ensure his development plans would not be disrupted.

What to Do if You Disagree with an Easement

If you disagree with the terms of an easement or believe it is unfair, there are steps you can take. You may have the option to negotiate the terms or challenge the easement’s validity in court. Some options include:

• Negotiation: Sometimes, the party holding the easement may be open to renegotiating terms, especially if it no longer serves their needs or if it causes undue hardship. 
• Legal Disputes: If negotiations fail, you may need to take legal action to challenge the easement’s validity or its scope. Our team at Strategy Law is experienced in handling easement disputes and can guide you through the process. 

Conclusion

In real estate transactions and property ownership, easements are essential. They may have an impact on your property’s development, use, and even sale. As a real estate lawyer at Strategy Law, I assist clients in resolving conflicts and negotiating conditions pertaining to easements. It’s critical to comprehend how easements can affect your rights and the value of your land, regardless of whether they are officially documented or not.

If you have questions about easements or need legal assistance in a real estate matter, contact Strategy Law today. Our team of expert real estate attorneys is here to help protect your property and your rights.