When purchasing real estate, unexpected legal issues can derail your plans. One commonly overlooked complication is the presence of an undisclosed easement. These legal rights allow others to use portions of a property and can significantly affect ownership, usage, and value long after the transaction is complete.
What is an easement?
An easement is a legal right granted to a third party to use a specific portion of a property for a defined purpose. This could include a utility company’s right to access power lines or a neighbor’s continued use of a shared driveway. Easements remain in effect even after a property changes hands, so full disclosure is essential before a sale.
Problems caused by undisclosed easements
Failing to disclose an easement can create immediate and ongoing complications. You may discover post-closing that certain areas of the property are off-limits for development, fencing, or alterations. These limitations can restrict your intended use and potentially diminish the property’s market value. Conflicts may arise with neighbors or service providers asserting their legal access rights.
Legal consequences can also follow. If a seller omits an easement in disclosure documents, it may constitute a breach of contract. Buyers who discover this after the fact might pursue legal remedies, including damages or even rescission of the sale. Resolving such disputes often involves litigation and significant expense.
How to avoid easement issues
To prevent issues, carefully review the preliminary title report and other property records before finalizing a purchase. These documents typically reveal existing easements. Conduct a thorough physical inspection of the land and ask pointed questions about any shared or unusual usage areas. Sellers should disclose any known easements to avoid future liability.
Undisclosed easements can reshape how you access, use, and enjoy your property. Understanding them before you finalize a real estate transaction protects your investment and helps prevent future disputes. Informed decisions lead to fewer surprises and greater peace of mind.