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Reviewed by Sujaini | Updated on Jan 29, 2021


What is Easement?

An easement, or easement arrangement, is a term describing a situation in which one party uses another party's property, where a fee is charged to the property's owner in exchange for the easement rights. Public utilities also buy easements for the right to install telephone poles or run pipes above or below the private property.

Although payments are charged to the property owner, however, easements may have a negative effect on property values in that unsightly power lines, for example, may minimise the visual appeal of a piece of land.

How Does it Work?

They are used to define a high-level arrangement between a property's owner and another party—whether an individual or an organisation. A traditional easement arrangement specifies a form of payment by the complainant to the owner for the right to use the subject matter of easement for a particular reason.

Because an easement is exclusive to the arrangement between the two parties concerned, easement agreements are formulated in such a manner that the property's precise use is clearly defined so that the property owner is granted a termination of easement.

These arrangements are often converted into a land sale, so it is important for prospective buyers to know if any easements are being assessed on the house.

Examples of Easement

There are three forms of the easement agreements common to all. What form of the easement would be given to an individual depends on the interests of the individual parties.

The first is a utility easement that allows a property owner and utility company to run water pipes, power lines, and other utilities.

The second is a private easement agreement between two private parties. This easement is relatively common in that it grants one party the right to use a piece of land for personal purposes.

The third easement is an easement by necessity. This form of the easement is more liberal in that it requires no formal agreement and can be enforced by local law.

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