We’ve discussed easements at great length on this blog, and for good reason. In the world of commercial real estate, we often deal with commercial properties that need easements in place to dictate how shared parking lots or roads are accessed and maintained. If you’ll be developing an easement agreement, it’s imperative that you outline how maintenance costs will be handled among parties that have access to this area, otherwise you may be stuck with a major bill even though you’ve already been gracious enough to let others have legal access to your land.
In today’s blog, we want to take a closer look at how maintenance costs are typically handled and the importance of outlining how these expenses will be handled in a commercial easement agreement.
Maintenance, Repairs And Improvements Of Serviant Property
An easement agreement lays out how one party (the dominant estate) can legally access another person’s property (the servient estate). If businesses share a driveway or a parking lot, the easement will explain who can access a specific area, when they can access it and for what purpose.
A smart easement agreement will also lay out how repair costs are handled should the area require maintenance. After all, you’re already letting others have access to your land, the financial burden of repairing any damage to this shared property shouldn’t fall squarely on your shoulders, but it can unless it is specifically laid out in an easement agreement.
Because every easement agreement is unique, you’ll want to pay close attention to how you divide the financial responsibility for repair and maintenance costs. If multiple parties have access to the shared property, you may opt to divide costs equally. If multiple parties have access but one party uses access much more regularly (or if driving heavier equipment that could expedite the need for repairs), costs may be divided relative to the use of the easement. Poorly planned easements can scare off tenants who may not want to be on the hook for repair costs if they don’t use the access as much as others, so it’s important to really consider a fair way to split these costs when creating an easement agreement.
All of this can be a bit confusing, and because every single easement agreement and shared access plan is unique to the parties involved, it’s difficult to paint with broad strokes when talking about the subject. The best thing you can do should you find yourself in a position where you want to appropriate easement maintenance costs is to connect with a commercial title service team like Commercial Partners. We can help ensure your interests are protected and create a detailed agreement that clearly explains how maintenance, repairs or improvements are handled so that the dominant and servient estates clearly understand their obligations.
For more information about easements or maintenance obligations, reach out to the team at Commercial Partners today at (612) 337-2470.