It’s a story we hear time and time again. A property owner is approached by the government or a specific business about allowing third party access and rights to the owner’s land without buying the property outright. That entity may be looking to create an easement agreement, where they gain access rights with a specific area of land even though the property remains with the original owner.
On the surface, it sounds like a fine deal. You get paid, you get to keep the land, and a third party will have access to land that you don’t really need. However, before you sign that deal, we recommend that you sit down with a title services team to ensure you understand the true economic impact of your decision so that you can come to a fair agreement. In today’s blog, we take a closer look at all the ways an easement agreement can impact your property’s economic value.
The Impact Of An Easement
Let’s lay out an example to help drive home our point about understanding the true economic impact of an easement agreement on a person’s property. For example, let’s say that you’ve been approached by a company to build solar panels or wind turbines on a small section of your property. They offer you $100,000 for these rights, and because it seems far more than you would ever generate off that patch of land, you’re leaning towards accepting. But you can’t just examine the offer versus what type of profits you could generate off that land when determining if it’s a fair deal. Other ways you can be economically impacted by this type of agreement include:
Let us go over your easement agreement and ensure you are making a savvy financial move. We can ensure you’re not getting taken advantage of and that you see all angles to a deal before signing on the dotted line. For more information, or for help with another aspect of the commercial real estate business, connect with the team at Commercial Partners today at (612) 337-2470.