Mr. Mac and Mr. Cheese were neighbors and friends. Mr. Mac bought a piece of land adjacent to Mr. Cheese’s property. However, to get to his newly bought asset, Mr. Mac must pass through Mr. Cheese’s area. Being good neighbors and friends, they agreed verbally that Mac could pass through the property so that he could get to and from his lot. For years, he was able to use the property as a right of way. Unfortunately, Mr. Cheese died and his heirs sold the property that served as a right of way. The new owners did not honor the verbal agreement that existed between the friends. Mr. Mac lost access to his lot, and for whatever use the land was to him, he cannot continue until he is given easement by the new landowners.

Sounds familiar? This is the classic case of easement – the right of way, and the dilemma of verbal agreements in such circumstances.

What is Easement?

An easement is a legal ability to use someone else’s land to use for a specific purpose. Landlocked properties are usually the kind of land that needs easement, to gain access. In the story, Mr. Mac bought a landlocked property and needed permission from Mr. Cheese to access it. Mr. Cheese permitted Mac to enter and exit to his property. In most cases, the agreement/permission would be written and recorded at a county clerk’s office. However, an implied or verbal agreement was sufficient for them as can be seen in this story.

When the easement is documented and registered, it becomes an encumbrance or a claim on the land’s title.

Kinds of Easement Including Right of Way

Easement is the right given by a landowner to another person to use his land for a specific purpose. It is also specific whether it is for the whole use or only a certain portion. Here are the different kinds of easements:

• IN GROSS is given to specific individuals or companies for a specified use, intent, or purpose. This kind of easement agreement is not transferable with the property when sold or transferred in other means. A new agreement must be drawn.
• Appurtenant is the kind of easement attached to the land. Right of way is an appurtenant easement that is passed with the property when it is transferred or sold. When buying land with an adjacent landlocked property, make sure to check for an easement agreement, especially before undergoing land development such as building facilities or improvements such as permanent fencing.
• Utility Easement is most commonly used by utility companies. They are given the right to use a specific part of the land for utility purposes such as electrical poles.
• Prescriptive easement is the right to use land without the permission of the landowner. Permission is given to an individual, at a specific period or length and the use of the portion of land meets requirements. Different states have different rulings on prescriptive easement.
• By Necessity gives someone the legal right to use a portion of a property as long as the need is considered valid. This is usually used for landlocked residential property with no access to a road except via another property.
• Private Easement is an agreement between individuals or companies that allows the person or company to access, build or maintain a structure on a property.

Effects of Easement to Property and Owner

If the easement agreement of Mr. Mac and Mr. Cheese was documented and registered, it would affect the sale of the property and its new owner.

Effect on Property Values

Easement affects the value of a property. When a property with easement is for sale, the land value would include it. When a property owner is offered an easement agreement by a landlocked owner, a real estate appraiser would be called to appraise the value of the property or portion of it. The appraiser adjusts the value based on the rights and easement used that will affect the surrounding property where the portion of easement will be enforced. Residential lots’ value is not affected by easements in most cases, because these usually on edges of the land or for utility management only.

Problems Property Owners Encounter

Be informed that if you have a property with an easement agreement, you cannot make improvements or build within the area where easement is enforced. Any structure that blocks access will be torn down. To ensure you will not encounter problems and develop the surrounding property optimally, know the placements or where the specific areas are.

If you are a buyer, find out in advance if there are existing agreements with adjacent landlocked properties, the kind of easement, locations, and with whom. Registered agreements are usually considered public documents, so research through the local registry office.

You can also ask for the assistance of a real estate agency, like Preferred Properties of Texas, to help you gather documents. Our Real estate agents at Preferred Properties of Texas are experienced with handling agricultural and industrial lands and know where to look and how to gather this information.

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Real estate agents will tell you–don’t wait until you market your house to remodel or make repairs. Fix it up today so that you can enjoy the home whenever it’s yours.

The same holds true for land.

Too frequently, landowners do not bother to clean brush, replace a faulty septic system or install a new entrance gate–not until they’re prepared to put their property in the marketplace.

Making improvements now can pay off in 2 manners. You will increase the future worth of their house. Plus, you’ll get to enjoy the updates yourself.

Key Considerations

Which enhancements should you handle first?

This depends how you plan on using the property and in which it is located–a homesite in the Piney Woods or a hunting ranch at the South Texas brush country, as an example.

“The most important things are water and power,” states Jeff Bedwell, Brady and San Saba branch manager with Central Texas Farm Credit in the western Hill Country. “That may sound like a no-brainer, but people just don’t know the lack of available water in some rural locations.”

In East Texas, including a water feature and”cleaning up” treed property will normally pay off at sale time, according to Garrett Cox, appraiser with Heritage Land Bank at Tyler.

Following are a Couple of improvements which may
Pay off to you, whether financially or in personal satisfaction.

Pretty small pond on a ranch in the Texas Hill Country.

Water

Water features are generally the top choice for improvements. Installing a lake or pond may add significant value to property. And should you own creeks, clean them up to increase water flow. Does water include aesthetic appeal, it will help attract wildlife to the property, according to Cox.

“At the middle shore place, water features continue to command a high with recreational land buyers,” says Wade Kubecka, appraiser with Capital Farm Credit at El Campo. “The vast majority of buyers need water features that are already in place.” Those attributes range from beachfront properties that offer access to this saltwater bay systems all of the way to waterfowl habitat ponds developed especially using the waterfowl hunter in mind.

Whether you plan to reside on the property, increase livestock or nurture a deer herd, a reliable water source is a requirement. But in most regions of Texas, water is not guaranteed.

“Simply because there’s a water line before your property doesn’t mean that you can tap into it,” says Bedwell. It may be necessary to drill a well. However, to ensure that is even possible, go online to look at the water depth and quality of test wells in your region, he guides.

A texas barn at a meadow of bluebonnets

Structures

Twenty years ago, barndominiums weren’t ordinary –at least not by that name. Now , a”barndo”–often a metal construction that is popular on recreational properties–will generally increase a home’s value, according to Cox. He reports that even a little cabin will make a property more attractive to someone searching for a place to hunt.

“A barndominium will at least retain its worth, and it costs about the same as a mobile home, which loses value,” Bedwell states.

Furthermore, a barndo can perform double duty as a home–if fulltime or on weekends–and a workshop or equipment shed. And if you build a bigger home later, the barndo can serve as a bunk house for extra visitors.

But don’t overlook other kinds of structures that are functional. A barn, shop or well-constructed shed is going to improve your premises too, says Cox.

Fencing

Quality fencing is an integral consideration if you’ve got a hunting ranchand it is a requirement if you raise livestock. For a cattle ranch, regular area fence will cost approximately $2.50 each foot–$3 a foot if bulldozer work is needed–and that could add up quickly, Bedwell points outside.

“But if you’re going to have a really cow-calf operation, then fencing is appropriate behind water and power as an important home advancement,” he states.

On a recreational land, determine if you truly need a high fencing to keep deer if a low fence is sufficient. Though high fencing will increase the value of the house, just a small percentage of buyers are ready to pay the extra price tag of a high fencing, based on Bedwell.

Brush Clearance

In East Texas, where the plant can be dense, Cox says property buyers are often searching for a view. Thinning trees out and clearing the undergrowth involving them can make the property more attractive.

On a woodlot which you plan on using for wood and diversion, he urges making cuts throughout the timber for hunting lanes and incorporating streets for movement throughout the house. It also makes sense to plant a food plot in the center, ” he says.

“For $85 an hour, you can rent a bulldozer and wash up pockets of their property so it is possible to go around,” says Cox.

Cox, who previously was an appraiser in Central Texas, notes that clearing brush and cedar may also add to property values from the Hill Country. But do not”over-clear” the land.

Rainwater Collection

“A rainwater collection system is the way of the future in our portion of the planet,” says Bedwell. He tells the story of a little rancher who collected enough rain off a 40-by-60-foot barn to meet with the ranch’s water demands for a year.

“A complex rainwater collection system will probably cost $30,000 to $40,000, versus $125,000 to drill a deep well. So it’s relatively cheap,” he states.

Anyway, he points out,”collecting rainwater isn’t only smart, but it is perceived as a fantastic thing”–and something that he considers rural property buyers at the Hill Country will be seeking in the future.

Like water, electricity is something many first-time landowners take for granted, according
to Bedwell.

Power

“It’s really important to have power set up, particularly for a rural homesite,” he states.
“A deficiency of electricity is likely to lessen your house’s resale value and give potential buyers second thought”

Your Plan

Confused about how to boost your distinct property? Not sure where to start?

“Think about it this way,” says Bedwell. “If it is 10 years in the future, and you’re putting your property in the market, ask yourself what
You might have done to make it more usable and enjoyable.”

And remember: Improvements often can be financed as part of their mortgage, if they’re planned when you obtain the property.

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