An easement, also known as an easement agreement, is a real estate setup that allows one party to use another party’s property. Utility companies frequently buy easements to have the right to install pipes or cables on private land, and property owners might need easements across a neighbor’s land to reach public roads. Although owners get paid for these easements, they can decrease property values if things like power lines detract from the visual attractiveness.
Learn more about Easement
It’s a deal between a property owner and another party, specifying payment for the use of the property.
Easements are tailored to the specific agreement between the two parties. Therefore, these agreements clearly define how the property can be used and include a termination clause for the property owner. It’s important for buyers to look for any existing easements, as these can be transferred during a property sale.
Types of Easements
There are three main types of easements, which are selected based on what the parties want.
A utility easement permits a utility company to install lines or pipes across a property. These utility easement agreements are typically found in a property’s deed or may be held by a city or municipality.
The second type is a private agreement between two individuals. This is quite typical as it grants one party the right to use a specific piece of property for personal purposes. For instance, a farmer might need access to a pond or extra agricultural land, and a private easement agreement with his neighbor allows him to meet these needs. Additionally, if a utility line needs to be run through a neighbor’s property for a well system, that arrangement is managed through a private easement.
Lastly, the third is known as an easement by necessity. This type is more flexible since it doesn’t need a written agreement and is backed by local laws. An easement by necessity comes into play when one party must use another person’s property. For example, if someone needs to use a neighbor’s driveway to get to their home, that situation is classified as an easement by necessity.