Easement Verification

[EagleBend]

I inspected a property and the owner stated an easement crosses the south end of property do I need to verify this with the title or can I just comment on the information he gave me

 

[Michigan CG]

Yes, you need to verify this. Easements can have a huge impact on value.

 

[bnmappraisal]

Definitely agree with MCG. Verify

 

[EagleBend]

Yes, you need to verify this. Easements can have a huge impact on value.

Ok! Thank you

 

[Meandering]

Standards Rule 1-2

In developing a real property appraisal, an appraiser must:

(e) identify the characteristics of the property that are relevant to the type and definition of value
and intended use of the appraisal,

(i) its location and physical, legal, and economic attributes;
including:

(iv) any known easements, restrictions, encumbrances, leases, reservations, covenants,
contracts, declarations, special assessments, ordinances, or other items of a similar nature; and

STANDARD 2
(a) The content of an Appraisal Report must be consistent with the intended use of the appraisal
and, at a minimum:

(viii) summarize the information analyzed, the appraisal methods and techniques employed, and the reasoning that supports the analyses, opinions, and conclusions; exclusion of the sales comparison approach, cost approach, or income approach must be explained;

Comment: An Appraisal Report must include sufficient information to indicate that the appraiser complied with the requirements of STANDARD 1. The amount of detail required will vary with the significance of the information to the appraisal.


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[Terrel L. Shields]

If the deed does not tell you the information, then ask the client for a title opinion or survey with easements on it. We are not abstractors. And often "easements" take in a whole lot of territory. I signed a water line "easement" but is it recorded? Not to the best of my knowledge...not at least in the real estate records. Is it a negative attribute to the property, probably quite the opposite. Perhaps it is in the Misc. records, but that is a less searchable (on line) data base that I don't have access to in the "normal course of business". Same for a (high power) transmission line across the place. These tend to be filed en masse and are not attached to the deed unless a thoughtful surveyor, title lawyer or abstractor places it in a deed that is subsequent to the event. Any yes, it limits the ability of the space to be utilized except for its current use - agriculture. Roughly 3 - 4 acres of the tract is negatively impacted for future development.

I certainly would not want to search and not find an easement, then certify that I "know" there cannot possibly be one that I did not find because I don't know where to look. Someone else might known where to find such easements (like that Misc. file) or the easement records are held by someone else. You know this one exists. You need to find out what it is (utilities, access to adjacent site, etc.)

 

[Mark K]

I inspected a property and the owner stated an easement crosses the south end of property do I need to verify this with the title or can I just comment on the information he gave me

Did he mention the nature of the easement?

If its a drainage/utility easement, chances are its not a significant issue.

If its a pipeline, power transmission line, ingress/egress, etc. easement it may be a large issue.

Most all residential lots have easements of some type. You need to find out if its atypical for the area.

When I encounter an atypical or unknown type of easement I throw it back in the client's lap and have them do a search. I've never researched for easements; its outside my scope of work and outside of my competency. As Terrel said, easements can be recorded in many different locations in the courthouse and some are not recorded at all. I'm not signing off as a title/easement searcher.

I made a lot of money one year doing DIV appraisals for homeowners filing claims vs. a title company due to their failure to find and report a 50' power line easement that took up most of the back yards of a row of homes. Power company came in and cleared the woods, fences, yard barns, above ground pools, etc. in the rear yards. Wooded lots became sunshine lots. Subdivision plat showed a 15' utility easement but in fact the title company missed the 50' easement in place prior to construction of the subdivision.

 

[gregb]

In Santa Barbara County, Fidelity National Title lost a $3M+ court judgement for missing a gas facility easement on an ocean front propery. The title company thought is was only a lease.

 

[sail143]

Do not rely on the owner. When it comes to easements they often do not really know what rights the easement really gives them.