Private Restrictions on Ownership

Lets face it, owning land is a complicated matter, and there are many restrictions put upon the land owner he or she is responsible for abiding by. These restrictions and limitations are commonly known as encumbrances. Lets focus our attention on the private land use restrictions.

Having the land is one thing, but what you are actually allowed to do with the land is a different matter that largely affects the land’s value as a whole. The restrictions placed on a property can come in many different forms. Two of the most common private restrictions on ownership include liens and easements.

Liens:

A lien is essentially a security interest in a property held by a creditor as a security for repayment of a debt or other obligation. The lien must be paid of before you can sell your property and transfer title to the buyer. Liens come in many different types. Below is provided a basic overview of the varying property liens commonly used.

http://www.nolo.com/legal-encyclopedia/types-property-liens.html

If a lien is not satisfied or removed, the land can therefore be sold at public auction. The key here is PAY YOUR BILLS! In this economy it can be daunting task to get the bills paid on time, but understanding the consequences you may face as a result should some light on the importance of this.

Easements:

And easement is a right given to one party by a landowner to use the land in a specified manner. The theme here is “coexistence” as the land owner, with the one who holds the easement. Easements can benefit a property and increase value. The two traditional types of easements include an easement appurtenant and an easement in gross.

An easement appurtenant exists when as easement is legally connected to an adjoining property. This creates a servient estate and a dominant estate. The dominant estate is the estate that is being benefitted by the easement and the servient is the estate with the so-called “burden.”

An easement in gross contains no dominant estate, only a servient estate. Examples of these include a utility company needing access to run a power line across your property or a highway department acquiring an easement for a road right-of-way. It is also important to take not this easement binds all future owners of the property.

Easements are many times overlooked or disregarded. Listed below is an article published by the Minnesota Real Estate Journal illustrating their importance when considering real estate development.

http://www.lindquist.com/files/Publication/f41e9034-cb36-4407-a43b-42d32ad1a6d4/Presentation/PublicationAttachment/6a192b44-2a77-406f-be20-7489d728b6da/Easements%20Made%20Easy.pdf