Easements can sometimes be difficult to terminate once they are in place. Since these agreements often stay in place despite the sale of a property, it’s possible that you are purchasing property with a standing agreement in place that you are required to honor. Many property owners look for ways to terminate easements they discover on their property that they’d rather not exist, but there are only a few ways that may prove fruitful. In today’s blog, we dive into the possibility of terminating an easement through merger.
Terminating An Easement Through Merger
Terminating an easement through a merger essentially occurs when the benefitted party acquires the burdened parcel. For example, you may have an easement agreement with a land owner to traverse through their property in order to more easily access hunting land that you own, or perhaps you have an access easement agreement with the neighboring farm. If you acquire that hunting land or you buy out your neighbor’s farm, then you can essentially agree to terminate the easement because you are the sole party involved with the agreement.
It’s worth noting that this only works if you are the only individual who has been granted this access right through the easement agreement. If others have the same access rights as you, then you cannot terminate the easement through merger because other benefited parties exist. This type of termination only exists if you are the sole benefitted party and you acquire the burdened property.
If this scenario isn’t possible for your situation, have no fear. There are other ways you can work to terminate the easement. The simplest course is to ask the benefitted parties to agree to terminate their access rights. Sometimes all you need to do is ask, but if that doesn’t work, you can also offer to sweeten the pot and buy out their access rights. Again, you’ll need all named parties to agree, which may not even be possible given the exact language contained in the easement. However, getting the other side to agree to a termination or a buyout is the most common way to end an easement agreement.
In some instances, you may also be able to petition to have the easement terminated because it has been abandoned. If you can make a case that the easement has not been used for a number of years, you may petition to have it terminated. This can make the property more appealing to potential buyers who would rather not purchase a property with an existing easement if at all possible, even if it hasn’t been used in some time.
If you’re hoping to have an existing easement agreement modified or terminated, connect with the team at Commercial Partners. We can look into your legal options and help determine the right move for your unique situation. For more information on how we can assist with all your commercial real estate needs, pick up the phone and call the team at Commercial Partners today at (612) 337-2470.