Easements section
Q. What is an easement?
An easement is an interest in land that controls the owners’ use of their property in specific ways agreed upon by the owners and the body purchasing the easement. A conservation easement is a specialized interest in land which restricts the owner's use of property in ways specified by agreement of the property owner and purchaser of the easement. It can be donated by the owner (with some federal tax advantage) or purchased by a government body when Open Space funds are available.
Q. What are some advantages to conservation easement?
Conservation easements can preserve the beauty of your property and contribute significantly to the environmental health of the area.
A tax benefit may follow donation of an easement. Current Federal tax benefits expire on December 31, 2007.
Q. Do owners still own the easement property?
The owners continue to hold title to the property after it is eased. The owner retains the right to sell, lease, or bequeath the property. Property use is limited only by the terms of the easement.
Q. How long does the easement last?
The easement is valid in perpetuity and applies to heirs and assigns.
Q. What if a property is already participating
in Act 319 (The Pennsylvania Farmland and Forest Land Assessment Act of 1974) which provides a real estate tax benefit to owners whose land is in
“agricultural use,” “agricultural reserve,” or “forest reserve” and who are enrolled in the “Clean and Green Program.”
An easement does not affect a property’s Act 319 status.
Q. Can the property owner sell land for subdivisions?
Depending on the terms, an easement does not necessarily prohibit all subdivision.
Q. How much can a property owner receive as reimbursement for a land easement?
The value of an easement is determined by two appraisals:
The first appraisal is based on the highest and best use of the land (the greatest amount of subdivision allowed by Township ordinances and the topography of the property).
The second appraisal is the value of the land with the easement. The difference between the appraisals represents the dollar value of the easement.
Q. How does a property owner benefit from a conservation easement?
Conservation easements permit a property owner to access the easement portion of the property’s value before selling the parcel. This provides funds now for the owners to use as they see fit.
Q. Does a conservation easement affect property value?
Once the property is eased, it may continue to appreciate in value like other real estate in Chester County. Conversations with qualified Chester County appraisers indicate that as homes with open space become scarcer, their value can rise as buyers search for privacy and secluded parcels near commercial and transportation centers. Therefore, eased property can provide its owner with funds before its sale, and with the likelihood of additional appreciation to be realized when it is sold.
Some sales in the region indicate that property owners increasingly are able to realize as much, and sometimes more, than what a developer can offer them when adding together what they receive for easement and the final sale price of the property.
Receiving funds for an easement can be quicker and more reliable than selling land for development since many agreements of sale with developers have contingencies which allow them significant periods of time for their “due diligence” studies and for submitting plans to a township’s planning
commission for approval before the sale is finalized.