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Investor Glossary
2 min read

Easements

An easement is a legal agreement with the owner of real estate that permits access under specified circumstances.

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What Is an Easement?

In terms of commercial real estate, an easement is a legal agreement to permit access to a property under specific circumstances. Self-storage owners must understand how easements work in order to understand how they or their tenants may access others’ properties, and vice versa. Easements are typically filed as an appendix to any legal document, such as a warranty deed, that pertains to real estate.

Much of the time, property owners grant easements to owners or occupiers of an adjacent property — particularly when there is a regular need to cross one property to get to or from the other. These easements provide rights of ingress and egress, or the legal right to enter and exit, to properties that may be otherwise inaccessible without technically trespassing.

Arguably, the most common types of easements are used by utility companies. Since an electricity or water provider may need to ensure its technicians have access to infrastructure located on private land, easements are usually granted by the owners of most commercial real estate. Owners should note that easements do not grant any kind of land ownership, but instead only grant access — which is crucial when it comes to infrastructural issues that may need to be addressed and resolved.

Related Questions

What is an easement?

An easement is a legal agreement which grants the right to use another entity’s property in a limited, specified capacity. Easements are often used to establish rights of ingress and egress for accessing the commercial property. In cases where a registered easement has not been granted through the local authorities, or where ingress and egress issues are not addressed on a property’s deed, a land-use agreement can be utilized instead.

Source: Ingress and Egress Rights in Commercial Real Estate

What are the different types of easements?

Easements are legal agreements which grant the right to use another entity’s property in a limited, specified capacity. There are two main types of easements: easements in gross and easements appurtenant.

Easements in Gross: An easement in gross is a type of easement that grants a non-possessory right to use another’s property. This type of easement is typically granted to a specific individual or entity, and is not tied to any particular piece of land.

Easements Appurtenant: An easement appurtenant is a type of easement that grants a possessory right to use another’s property. This type of easement is typically granted to a specific piece of land, and is tied to the ownership of that land.

In cases where a registered easement has not been granted through the local authorities, or where ingress and egress issues are not addressed on a property’s deed, a land-use agreement can be utilized instead.

Like many easements, restrictive covenants are written into the deed of a commercial property, and may either last a certain number of years or indefinitely.

What are the legal implications of an easement?

An easement is a legal agreement that grants the right to use another entity's property in a limited, specified capacity. Easements are typically used to establish rights of ingress and egress for accessing a commercial property. Easements can have a substantial impact on how a developer may utilize a specific property, as they may restrict the types of businesses that can be operated on the property, or they might prevent a certain part of the property from being developed. It is essential to know exactly what restrictions a property has (or allowances that a property owner must provide) before purchasing or developing a commercial property.

For more information, please visit Ingress and Egress Rights in Commercial Real Estate and Commercial Zoning in Commercial Real Estate.

How is an easement created?

An easement is typically created through a legal agreement which grants the right to use another entity’s property in a limited, specified capacity. This agreement is often referred to as an easement. In cases where a registered easement has not been granted through the local authorities, or where ingress and egress issues are not addressed on a property’s deed, a land-use agreement can be utilized instead.

Easements and restrictive covenants are written into the deed of a commercial property, and may either last a certain number of years or indefinitely.

Sources: Ingress and Egress Rights in Commercial Real Estate, Commercial Zoning in Commercial Real Estate

What are the rights and responsibilities of an easement holder?

An easement holder has the right to use the property of another for a specific purpose, such as ingress and egress. The holder is also responsible for maintaining the easement and not interfering with the rights of the property owner. The holder must also not use the easement for any purpose other than what was agreed upon in the easement agreement. Source

What are the remedies for a breach of an easement?

The remedies for a breach of an easement depend on the type of easement and the jurisdiction in which it is located. Generally, the remedies for a breach of an easement include damages, injunctive relief, or specific performance. Damages are a monetary award to compensate the non-breaching party for any losses suffered due to the breach. Injunctive relief is a court order requiring the breaching party to stop the activity that is in violation of the easement. Specific performance is a court order requiring the breaching party to perform the duties required by the easement.

For more information, please see What Are the Remedies for Breach of an Easement? from Nolo.

In this article:
  1. What Is an Easement?
  2. Related Questions
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