Are you looking to sell your home?
It’s a big step, and even if everything goes smoothly, chances are it will still be incredibly stressful. This can be heightened for homeowners who have either inherited a home or have a home to sell that has an easement.
It is not a common term in real estate, but an easement usually comes with the property and, legally, can be very hard to remove. Thus, it can have an impact on the sale of your home.
If you have an easement and are concerned about selling your home with it, read on for a guide on what an easement is, how to potentially have it removed, and the potential impact it will have on the selling process.
What is an Easement?
If you have inherited the property you want to sell, and you have had it assessed to discover it has an easement, your first question relating to selling your property will be ‘what is an easement?’
Long story short, an easement is a legal right to use part of the land for a specific purpose by someone besides the homeowner. Common examples include utility companies using part of the property to run power lines, or part of the property having a ‘right of way’ area, for pedestrians to pass through.
Some easements are permanent, and some are temporary, with the latter being more common for construction related to the placement of power lines or the laying of pipes.
The Potential Downsides of an Easement
For many people looking to buy a home, the idea of other people having a legal right to part of the home they have bought can feel invasive. As a homeowner, an easement can make it harder to sell a property, with estate agents listing the following reasons as to why.
Reduced Buyer Interest
When you sell your house, you are selling all of it, including the land it sits on. However, having to disclose that part of the land is technically accessible to a third party, even if it is a utility company, can put many potential buyers off. Why? It reduces the amount of usable space and can reduce the land that the new owners can use. It also reduces privacy, especially if the easement is a public path.
Complications with Buy-to-Let
Many people want to buy a property to let it out, known as ‘buy to rent.’ If you have an easement, this can create legal issues for the landlord when they start letting out the property. It can cause disruption to any potential future tenants, and can cause complications with landlord insurance, as liabilities for injuries may not be covered by said insurance, meaning the landlord has to foot the bill should someone get injured.
Positives of an Easement
The good news is that there are some positives when it comes to selling a home that has an easement.
Improved Access
If you have a property in an area that is remote, or hard to access by car, having an easement placed on the land can increase the value. As easement is, by definition, access to the land, having your home stand out as accessible in a remote location can up the interest of potential buyers and can make the property more appealing as a residential property letting.
Defined Boundaries
When it comes to land registry, with an easement, there will be fewer (or no) disputes over the defined boundaries. The boundaries of the property will be clearly defined, ensuring that your neighbors cannot complain about your hedge encroaching on their land. Well, they may be able to, but you will have the paperwork to showcase your property’s boundaries!
Can You Remove an Easement?
You may want to have a permanent easement removed, which is common when trying to sell a property. If the easement is temporary, you will need to disclose it legally to potential new owners, but this is not a significant issue in most cases.
You will need to know who owns the easement, known in legal documents as the ‘easement owner,’ which could be your local utility company, the local government, or even your neighbor. In some cases, an easement can be owned by a homeowners’ association.
Typically, the easement owner is listed in the property deed, and to have the easement removed, you will need to consult with a real estate lawyer or attorney to challenge the easement and request its removal. The laws surrounding easement challenges vary by location, so it is always wise to seek legal advice before initiating the process.
