When you purchase a piece of property, it’s important to know if it comes with an easement attached. There are two main types of easements, which are known as an easement appurtenant – where the easement “runs with the land” – and an easement in gross, which is often known as a personal easement. A personal easement can be eliminated when the property changes hands. It generally means that two property owners had a standing agreement with each other. That agreement is not officially part of the land in any sense, so the new property owner gets to decide if they want to honor it or not. But things can be very different if an easement is classified as one that runs with the land. CHANGES TO THE LAND ITSELF With an easement appurtenant, the actual legal description of the land is changed. The easement becomes part of the land, and an inherent part of that property. What this means is that the easement is transferred along with that property it is purchased by a new owner. A seller of the affected property is required to disclose that it exists before the property is purchased by someone new, as the easement can impact the value of the property in question. In many scenarios, an easement appurtenant may be critical to someone else’s ability to use their own property. A common example of a situation in which this kind of easement may come into play involves when one property separates the other from a main road. The owner of the property that has been separated may have an easement allowing them to drive across the first property. Without that permission, they would not be able to use their own land. Easements can get complicated, and they are just one factor to consider when buying or selling real estate. If you are going through the process of navigating a real estate transaction, it’s very important to know exactly what legal options you have and what your rights are. That way, you can make truly informed decisions about your situation.
What happens if an easement “runs with the land”?
When you purchase a piece of property, it’s important to know if it comes with an easement attached. There are two main types of easements, which are known as an easement appurtenant – where the easement “runs with the land” – and an easement in gross, which is often known as a personal easement. A personal easement can be eliminated when the property changes hands. It generally means that two property owners had a standing agreement with each other. That agreement is not officially part of the land in any sense, so the new property owner gets to decide if they want to honor it or not. But things can be very different if an easement is classified as one that runs with the land. CHANGES TO THE LAND ITSELF With an easement appurtenant, the actual legal description of the land is changed. The easement becomes part of the land, and an inherent part of that property. What this means is that the easement is transferred along with that property it is purchased by a new owner. A seller of the affected property is required to disclose that it exists before the property is purchased by someone new, as the easement can impact the value of the property in question. In many scenarios, an easement appurtenant may be critical to someone else’s ability to use their own property. A common example of a situation in which this kind of easement may come into play involves when one property separates the other from a main road. The owner of the property that has been separated may have an easement allowing them to drive across the first property. Without that permission, they would not be able to use their own land. Easements can get complicated, and they are just one factor to consider when buying or selling real estate. If you are going through the process of navigating a real estate transaction, it’s very important to know exactly what legal options you have and what your rights are. That way, you can make truly informed decisions about your situation.
Mistakes inexperienced landlords make
Investing in rental properties can be a rewarding venture, but it’s not without its fair share of challenges – especially if you’re a first-time landlord. By learning more about common mistakes shared by first-time landlords, you can set yourself up for a much smoother experience. Here are the biggest missteps to avoid: FAILING TO SCREEN TENANTS You may trust your “gut instincts” a lot when it comes to business but don’t make that mistake when it comes to your tenants. Failing to thoroughly vet your potential tenants can lead to problematic occupants who pay rent late, cause damage to the property or behave in ways that cause conflicts with other tenants. Always do thorough background checks, verify a prospective tenant’s employment and income, and contact previous landlords for references. USING GENERIC OR “BOILERPLATE” LEASES Another common mistake is using a generic or poorly drafted lease agreement. A comprehensive lease agreement is essential for protecting your rights as a landlord and clearly outlining the responsibilities of both parties. Tailor your lease agreement so that it covers essential terms such as rent, security deposit, pet policies, maintenance responsibilities and eviction procedures. (Remember: If it isn’t written down in your agreement, you can’t hold your tenant to it.) FAILING TO KEEP LINES OF COMMUNICATION OPEN Inexperienced landlords often overlook the importance of clear and timely communication with their tenants, and that breeds resentment and leads to trouble. Establish an open line of communication with your tenants and respond to their inquiries or concerns promptly. Consider using technology such as email, texts or property management software to both streamline and document your communications. NOT UNDERSTANDING LANDLORD-TENANT LAWS Not understanding the intricacies of the Fair Housing Act or other landlord-tenant laws, including those on the local level regarding things like security deposits and eviction procedures, can result in major legal issues and financial losses. With these guidelines in mind and a little legal guidance, you can navigate the landlord role with confidence and better ensure that your investment stays profitable.
Mistakes inexperienced landlords make
Investing in rental properties can be a rewarding venture, but it’s not without its fair share of challenges – especially if you’re a first-time landlord. By learning more about common mistakes shared by first-time landlords, you can set yourself up for a much smoother experience. Here are the biggest missteps to avoid: FAILING TO SCREEN TENANTS You may trust your “gut instincts” a lot when it comes to business but don’t make that mistake when it comes to your tenants. Failing to thoroughly vet your potential tenants can lead to problematic occupants who pay rent late, cause damage to the property or behave in ways that cause conflicts with other tenants. Always do thorough background checks, verify a prospective tenant’s employment and income, and contact previous landlords for references. USING GENERIC OR “BOILERPLATE” LEASES Another common mistake is using a generic or poorly drafted lease agreement. A comprehensive lease agreement is essential for protecting your rights as a landlord and clearly outlining the responsibilities of both parties. Tailor your lease agreement so that it covers essential terms such as rent, security deposit, pet policies, maintenance responsibilities and eviction procedures. (Remember: If it isn’t written down in your agreement, you can’t hold your tenant to it.) FAILING TO KEEP LINES OF COMMUNICATION OPEN Inexperienced landlords often overlook the importance of clear and timely communication with their tenants, and that breeds resentment and leads to trouble. Establish an open line of communication with your tenants and respond to their inquiries or concerns promptly. Consider using technology such as email, texts or property management software to both streamline and document your communications. NOT UNDERSTANDING LANDLORD-TENANT LAWS Not understanding the intricacies of the Fair Housing Act or other landlord-tenant laws, including those on the local level regarding things like security deposits and eviction procedures, can result in major legal issues and financial losses. With these guidelines in mind and a little legal guidance, you can navigate the landlord role with confidence and better ensure that your investment stays profitable.