Easements on Property: What They Are, Common Types, and How They Affect Landowners

An easement is a legal right to use another person's land for a specific purpose, and it can significantly impact how you use or sell your property. Understanding easements is critical for any landowner, as they can affect property value, limit development, and lead to disputes. This guide explains the most common types of easements, how they are created, and the key considerations for both the party granting the easement and the party using it. The most important step is always to formalize any agreement in a recorded easement deed to prevent future legal conflicts.

What is an Easement in Real Estate?

An easement is a non-possessory right to use a portion of another person's property. The holder of the easement does not own the land but has a legal right to use it. For example, a property owner might grant a utility company an easement to run power lines across their land, or a neighbor might be granted an easement to use a shared driveway for access. These rights are typically recorded with the property's deed and "run with the land," meaning they remain in effect even if the property is sold to a new owner.

What Are the Most Common Types of Easements?

Easements are categorized by how they are created and their purpose. The three most common types are easements by agreement, prescriptive easements, and easements by necessity.

1. Easement by Agreement: This is the most straightforward type, created by a voluntary agreement between two parties. This could be a neighbor asking for permission to access a nearby lake across your property or a utility company offering payment for the right to install cables. To be legally binding and avoid future problems, this agreement must be formalized in writing as an easement deed and recorded with the local county recorder’s office.
2. Prescriptive Easement: This easement is acquired through continuous, open, and unauthorized use of another's land for a legally defined period, which varies by state but is often between 5 and 20 years. For instance, if a neighbor has been using a path on your property to reach their home for the required period without your permission, they may file a claim to establish a legal prescriptive easement.
3. Easement by Necessity: This is granted by a court when a landowner has no other viable access to their property. If a parcel is "landlocked" and the owners cannot reach a public road without crossing a neighbor's land, a judge may order an easement by necessity to be created.

The table below summarizes these key types:

How Can an Easement Affect Your Property Value?

An easement can potentially lower your property's value because it restricts what you can do with a portion of your land. According to mainstream real estate assessments, a significant easement can make a property less attractive to buyers. For example, a utility easement that prevents you from building a pool or a deck in the backyard reduces the functional space for future owners. Before granting an easement, it is crucial to consider its long-term impact on your property's marketability.

What Should You Include in an Easement Agreement?

A well-drafted easement agreement protects both parties. Relying on a verbal handshake is insufficient and often leads to disputes. If you are creating an easement, based on our experience assessment, the agreement should specify:

• Scope and Purpose: Precisely define what the easement allows (e.g., foot traffic only vs. vehicle access).
• Duration: State whether the easement is permanent or temporary.
• Maintenance Responsibilities: Clarify who is responsible for upkeep and repairs (e.g., who plows a shared driveway?).
• Monetary Compensation: Detail if the easement is granted for a one-time payment, ongoing fees, or is free.
• Restoration Clauses: If construction is involved, require the easement user to return the land to its original condition.

Consulting with a real estate attorney is highly recommended to draft or review any easement agreement. An attorney can help ensure your rights are protected and that the terms are clear and enforceable.

Key Takeaways for Property Owners

Navigating easements requires careful attention to detail. Whether you are seeking an easement or someone is requesting one from you, the process has lasting implications. Always formalize the agreement with a recorded deed to avoid problems with future property owners who may be unaware of a verbal understanding. Be specific about the terms of use to prevent misunderstandings, and understand that an easement can affect your property's value. By taking these proactive steps, you can manage easements effectively and minimize the potential for legal disputes.