An easement grants a specific right to use another person’s property without transferring ownership of the land itself. The property that benefits from the easement is called the dominant estate, and the property that carries the easement is called the servient estate. They are typically recorded on the property’s title and can remain in place even after the property is sold.
Why It Matter in Real Estate
It can affect how a property is used, improved, or sold. Understanding them before buying or selling a property helps buyers, sellers, and real estate agents identify potential restrictions and avoid unexpected issues during the transaction.
Common Types of Easements
Utility Easements
These allow utility companies to access a property to install and maintain infrastructure, such as power lines, water pipes, or gas lines.
Access Easements
Also known as easements of necessity, these give a property owner the right to cross a neighboring property to reach a road or other access point, often used when a parcel does not otherwise have direct access to a public street.
Easements by Prescription
These arise when someone has used part of a property openly and continuously for a certain number of years, without the owner’s permission, similar to how adverse possession works. In California, this generally requires five years of continuous use.
Conservation Easements
These restrict development on a property to preserve natural or agricultural land, often established through an agreement with a land trust or government agency.
How Easements Affect a Property
It can influence a property in several ways:
- They may limit where structures, fences, or landscaping can be placed
- They can affect a property’s market value, depending on the size and location
- They typically transfer with the property when it is sold, since they are attached to the land rather than the individual owner
- They may require the property owner to allow access for maintenance or repairs, even if it’s inconvenient
How Easements Are Identified During a Sale
They are usually uncovered during the title search process and appear in the preliminary title report under Schedule B. Buyers and their agents should review this section closely to understand the location and scope of any easements before closing, since it can affect future building or renovation plans.
Common Issues with Easements
Although many easements do not cause problems, some can create challenges for property owners and buyers. Common issues include:
- Building Restrictions: It may limit where you can build a home addition, fence, driveway, or other structures.
- Access Disputes: Disagreements can arise over who has the right to use this and how it should be accessed.
- Utility Access: Utility companies may need access to the property for repairs or maintenance, which can occasionally disrupt the owner’s use of the land.
- Property Value Concerns: In some cases, the location or size of an easement may affect a property’s value or appeal to potential buyers.
How Professional Teams Help
Escrow and title professionals help identify recorded easements during the title search and explain how they may affect a real estate transaction. By reviewing title documents, answering questions, and coordinating with all parties, they help buyers and sellers make informed decisions before closing.
FAQs
Can an easement be removed from a property?
Sometimes. It can be removed if the party who benefits from it agrees to release it in writing, or in some cases through a legal process if it is no longer needed. Utility and access easements are less likely to be removed than easements based on limited or specific use.
Does an easement affect who owns the property?
No. It grants a right to use part of the property; it does not transfer ownership. The property owner retains title to the land, subject to the easement’s terms.
Do buyers need to worry about undisclosed easements?
A title search should reveal recorded easements, but some easements, such as those created by long-term use, may not always appear in public records. This is one reason title insurance and a careful review of the preliminary title report are important before closing.
Can a property owner build over an easement?
Generally, no. Structures typically cannot be built within an easement area without permission from the party who holds the easement rights, since doing so could interfere with its intended use.
Disclaimer: This blog is for general informational and educational purposes only and does not constitute legal, tax, financial, or professional advice. Readers should consult their own qualified attorney, CPA, financial advisor, or other professionals before making any decisions. Nesi Title and Escrow Company makes no warranties and assumes no liability for reliance on this content.
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