How Do Easements Affect a Real Estate Transaction?

 Posted on January 08, 2021 in Real Estate

There are a wide variety of issues that can play a role in a real estate transaction. One factor that both buyers and sellers should be aware of is whether there are any easements that apply to a property. Since easements are considered encumbrances that affect an owner’s ability to use their property, they should be addressed during the home closing process, and the parties should be sure to understand their rights and whether any changes to these agreements will be necessary.

Types of Easements on Illinois Real Estate Property

An easement is an agreement that provides someone other than a property’s owner with the right to use a portion of the property. Easements may be affirmative, meaning that they grant a party the right to use a specific part of a property for specific purposes, or they may be negative, meaning that they prohibit a property from being used in certain ways. Affirmative easements may include agreements that allow neighbors to use shared driveways or the rights of utility companies to place or maintain items such as power lines, gas lines, or water mains. Negative easements may restrict a property owner from erecting structures on a part of a property that is environmentally protected or from making additions to a home that would block a neighbor’s view.

Express easements are agreements that are set down in writing, such as in the deed to a property, a court order, or a legal agreement signed by a property owner and other parties. Easements may also be created by implication or by necessity, such as when a property owner cannot access their property without using a road or driveway on a neighbor’s property.

Easements will typically fall into one of the following categories:

• Easement appurtenant - This type of easement is attached to a property, and it will remain in effect when the property is sold to a new owner.

• Easement in gross - This type of easement will be held by a person or organization, such as a utility company, and it usually cannot be transferred to another party without the consent of the owner of the property.

• Prescriptive easement - This type of easement may be established if a person has continuously used someone else’s property in an open or obvious manner for at least 20 years.

Contact Our Gurnee Real Estate Attorneys

During a residential real estate transaction, sellers should disclose any easements that currently exist, and buyers will want to understand how these easements will affect their planned uses of the property. At Newland & Newland, LLP, our attorneys work with buyers and sellers to address these issues, and we will ensure that a title search is performed to uncover any encumbrances that may affect a sale. We will fight to protect our clients’ rights and help them complete their transactions successfully. Contact our North Chicago residential real estate lawyers at 847-549-0000 to set up a complimentary consultation.

Sources:

https://www.quickenloans.com/learn/easement

https://www.trelora.com/blog/what-is-an-easement/