Monday 11 February 2013

Policy Watch : EASEMENT RIGHTS

You like a certain property and want to purchase it. But the only access to it is via a driveway crossing the next property. Will a driveway have an impact on your potential purchase? A cable television company is seeking to install its lines along the existing electrical poles. Should the company negotiate with the Electricity Board or with each of the owners along whose property the lines run? 

Both these scenarios mentioned in the introduction of this article involve an Easement, a right that gives the property owner a 'non-possessory' interest in another person's property. An Easement has an impact on all types of real estate transactions, and is utilised for conservation and historic preservation purposes. Despite its prevalence, many people lack a clear understanding of this property interest, and numerous problems occur in the drafting, interpretation and implementation of an Easement.

Nature, Creation and Scope

An Easement is a right given to an owner of a property to use an adjacent property which he does not possess, but does not allow him to occupy it. For instance, if X owns a property and grants Y a right-of-way on the road across the property, Y has an Easement in X's property. Y may use the road, but cannot stop others from also using it. However, X could exclude everyone except Y from crossing his property.

Land burdened by an Easement is called a 'servient estate', and the land benefited by the Easement is called the 'dominant estate'. If an Easement benefits a particular piece of land, it is 'appurtenant' to the land. And, if an Easement benefits an individual not as an owner of a particular piece of land, then it is termed 'in gross'. Most Easements are affirmative, which means that they authorise use of another person's land. According to the Indian Easements Act, the inhabitants of a building enjoying the access and use of air and light continuously for over 20 years have a right to them without any condition or restriction. An Easement by virtue of custom is a legal right acquired by the power of law through continuous use of a land over a long period of time. Therefore, the right of way continues to exist by grant, prescription or by virtue of custom.

Easements are usually created by conveyance in a deed or other written documents such as a will or contract. The creation of an Easement requires the same formalities as the transfer or creation of other interests in land. The requirements are as follows: a written instrument, a signature and proper delivery of the document. In limited circumstances, the court will imply an Easement as a matter of law. Two common Easements created by an implication are an Easements of necessity and an Easement implied from a quasi-easement. An Easement of necessity is typically implied to provide access to a landlocked piece of property, whereas, an Easement implied from a quasi-easement is based on a landowner's prior utilisation of part of his property (quasi-servient estate) for the benefit of another portion of his land (quasi-dominant estate). This quasi-easement may become an implied one once either the quasi-servient land or the quasi-dominant land is transferred to a third party. Other methods of establishing Easements include prescriptive use (i.e. by the routine, adverse use of another person's land), estoppels (a legal doctrine involving reliance on the words or actions of another person), custom, public trust, and condemnation.

After an Easement is created, questions often arise concerning its location, dimensions and scope. These questions should be resolved on a case-by-case basis, and are impacted by the method of the Easement's creation. Questions involving matters covered by the written document, or the prior use, or the necessity that created the Easement can be resolved relatively easily. However, the written documents to create an Easement are often vague or incomplete, and inferences from prior use or necessity are not precise. In such a case, the applier's intent is uncertain, and must be construed by the court.

As a rule, an Easement holder has the right to do "whatever is reasonably convenient or necessary in order to enjoy fully the purpose for which the Easement is granted" as long as he does not unduly burden the servient land.

Conversely, the owner of the servient land may also make use of that land that does not unduly interfere with the Easement holder's right. What constitutes an undue burden depends upon each situation. For instance, an increase in traffic over an Easement giving access to a beach resort may not necessarily constitute an undue burden, but traffic resulting from changing a dominant estate from private use to a commercial business might constitute an additional burden on the servient estate.

The reasonable use of an Easement is not fixed and may include a consideration of changes in the surrounding area with technological developments. However, if the court determines that the servient estate is unduly burdened by the unreasonable use of an Easement, the servient estate holder has several remedies. These include injunctions to restrict the dominant owner to an appropriate enjoyment of the Easement, monetary damages when the Easement holder exceeds the scope of his rights injuring the servient estate, and in some instances, 'extinguishment' of the Easement. Likewise, there are remedies for interference by the servient owner. Interference with an Easement is a form of trespass, and the court frequently enjoins the obstruction of an Easement and may order the removal of encroaching structures at the servient owner's expense. If the interference with an Easement causes diminution in the value of the dominant estate, the court may also award compensatory damages to the Easement holder. 

Transferability and Termination of Easements

The transferability of an Easement must also be considered when undertaking a real estate transaction. An Easement's transferability depends upon its nature (i.e. whether it is appurtenant or in gross). In general, an Easement appurtenant is transferred with the dominant property even if this is not mentioned in the transferring document. But, the document transferring the dominant estate may express that the Easement shall not pass with the land. Because non-commercial Easements in gross are treated as a right of personal enjoyment for the original holder, they are generally not transferable.

An individual granting an Easement should avoid any legal problem by expressing that the easement is permanent and utilising appropriate words of inheritance. Although permanent Easements are the norm, they can be terminated in numerous ways. For instance, an Easement may be created for a limited or conditional duration. Easements of a limited duration are commonly used to provide temporary access to a dominant estate. An Easement may also be terminated when an individual owning the dominant estate purchases the servient estate, or when the holder of the Easement releases his right to the owner of the servient estate. This release must be given in writing. Abandonment of an Easement can also extinguish it, but as a general rule, the non-use of an Easement does not constitute its abandonment. The misuse or the sale of a servient estate can also terminate an Easement. 

Source : http://www.chennairealty.biz/legal_tax.php 


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