When evaluating potential commercial property targets, there’s a good chance that at least some of the properties you’re considering will have an easement attached to the property. Commercial property is much more likely to have an easement attached to the property simply because more people will have a vested interest entering, existing and using commercial property than a residential one. Should this scare you off, or should you embrace a property subject to an easement agreement? We answer that question in today’s blog.
Do I Want Commercial Property That Is Subject To An Easement?
The answer to the question at the heart of this blog is, “it depends.” For some, the existence of an easement is not only amenable, it is expected given the nature of their plans for the property. For example, if they are purchasing a commercial retail space, it should be expected that an easement agreement spells out how shared access, deliveries and customer parking will be managed with your space and in regard to other retailers within the commercial area. This is simply a necessity of doing business in a shared space.
For others, the existence of an easement can be a deterrent. If the easement allows access that you’d prefer not to give, or it dictates that you are on the hook for any maintenance costs associated with easement access or upkeep, this could add to your bottom line. If that’s not something you want to deal with, perhaps that property isn’t the right fit for you.
At the end of the day, it’s important to evaluate certain factors and compare them to your commercial vision to see whether or not the easement is a problem. Factors to consider include:
If you’re considering purchasing property that has an existing easement attached to it, consider syncing up with a title services team like Commercial Partners. We can uncover the existence of easement agreements well in advance of closing or a potential offer, and we can explain how a specific type of easement could impact your vision for the property. We want to help you find a property that is a perfect fit for your needs, and if that means avoiding properties with an existing easement or making sure any existing easement has agreeable terms, that’s what we’ll do for you.
For more information about easement agreements and how they can impact your commercial purchase, connect with the team at Commercial Partners today at (612) 337-2470.