How Easements and Right of Ways Can Impact Your Land Development Project

 Posted on December 00, 0000 in Commercial Real Estate

Land development is a process full of confusing terms, esoteric laws, and complex requirements. Easements and right of ways are no exception. In fact, these specific issues can have a significant impact on your land development project. Learn more about them, and how you can strive to either avoid them entirely or effectively navigate through them, with help from the following information.

What is an Easement?

Easements are predetermined land use agreements. Most often, these agreements are in place to protect wildlife, farmland, or landscape. Yet there are situations in which landowners add them to obtain tax credits. Regardless, you must understand what they are, and how they may affect your development project. This may be determined by looking at the two specific types of easements: gross easements and appurtenant easements.

Gross easements are generally held by a specific individual. They allow the use of land without the benefits of ownership. In theory, this might mean that you could potentially move forward with your project, even if there is an easement on the property. Yet gross easements may also be owned by a third-party, which can complicate the development project. Further, there are situations in which easements prohibit the development of certain structures. Examine how a gross easement may impact your project by first consulting with an experienced attorney.

Unlike gross easements, appurtenant easements are not issued to an individual. Instead, they are designed to benefit adjoining lands. Transferred upon the sale of the property, these are commonly used to protect wildlife areas, farmlands, and/or landscapes. It is important that you understand when and why the original easement was implemented prior to purchasing a parcel of land. Some can be worked around. Others cannot.

What is a Right of Way?

Right of ways may permit a pass-through of land, but the land cannot be used. For example, a right of way it might provide a land developer with the opportunity to pass from one side of a subdivision to another, but no part of either subdivision can be built upon the right of way land. This can greatly impact large land development projects and may, in some cases, result in the need to abandon the project entirely. Avoid this issue by practicing your due diligence prior to purchasing any parcel of land.

Obtaining Assistance with the Due Diligence Process

Although land developers can perform due diligence without legal assistance, it is highly discouraged that they do so. This is not just because of the complexity of the laws and requirements pertaining to land development; it is also due to the impact that time, money, and resources can have on the overall success of a project.

At Lindell & Tessitore, P.C., we work with commercial developers with a wide range of visions, projects, and issues. Able to increase the chances that your investment offers a return, we can assist with all legal aspects of your land development project. Learn more by scheduling a personalized consultation with our Oak Brook commercial real estate lawyers. Call 630-288-2555 today.

Sources:

http://www.nationalcenter.org/NPA569.html

http://extension.illinois.edu/lcr/easement.cfm

http://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=060500050HArt.+4+Div.+5&ActID=1745&ChapterID=45&SeqStart=13500000&SeqEnd=14800000