Developers often think buying land, planning the project and obtaining funding are all they need. While these are crucial stages, understanding easements upfront is equally important.
An easement is a legal right across your land. It gives someone else the right to use a portion for utilities, access and other specific purposes. They can limit where you can build, and what you can build. Moreover, it might even cost extra money to deal with.
Potential obstacles to your development plans
Easements do not grant ownership of the land. Still, they may restrict your ability to develop it as planned, such as:
- You will likely have reduced available space for buildings, parking or landscaping
- You might need to reroute or carefully plan to avoid damaging existing infrastructure
- You might inherit some maintenance responsibilities
- You could encounter unexpected costs
- You possibly will need to rethink your initial plans
For instance, if you are developing a shopping mall, as easement for a public walkway might split your property in half. To avoid disrupting customer traffic, you would either need to acquire easement rights for the walkway or completely modify the layout, which can mean additional permits and delayed construction.
Conducting a thorough title search before finalizing the purchase is essential. This way, you can identify any existing easements on the property and mitigate risks of development delays.
Seeking legal help
In some cases, it might be possible to negotiate modifications to an easement with the easement holder. A real estate attorney can help decipher the legal jargon and advise on potential limitations.