Utility Easement Compensation

[techbiker]

What is the cost to cure the easement? Can it be relocated to a "better" place?

Might not be a problem now but what happens when a future owner decides to expand? Is this property uniquely burdened?

You say there is an error in the location description. Will the description be fixed? Or will the description be expanded to include the actual/current sewer location? When I was searching for a parcel, I was concerned about ones where the easement description was off...

Buyers might start to think things such as: "Is this the only error?", "Any other hidden easements?", "Will I hit a gas line when I try to trench in utilities?".

 

[Terrel L. Shields]

explaining the lack of damages for said area to a farmer would be an uphill battle

We have a high voltage electric transmission line that cuts across 40 acres at an angle, while a drainage cuts almost 90° to the Highline. The result was to make siting a dwelling on the place nearly impossible. You must either build a bridge or site the house next to either mine or next to my niece's home. The 2+ acre easement wrecks the property from any further development. We got $700/acre for the easement in 1977 and it costs the family money every time land values go up.

http://www.irwaonline.org/eweb/dynamicpage.aspx?webcode=100_series
https://appraisersforum.com/forums/threads/over-the-fence-appraisal.206459/
https://www.thefreelibrary.com/Is+a...y+consistent+with+professional...-a0393988655

 

[techbiker]

We have a high voltage electric transmission line that cuts across 40 acres at an angle, while a drainage cuts almost 90° to the Highline. The result was to make siting a dwelling on the place nearly impossible. You must either build a bridge or site the house next to either mine or next to my niece's home. The 2+ acre easement wrecks the property from any further development. We got $700/acre for the easement in 1977 and it costs the family money every time land values go up.
https://www.irwaonline.org/eweb/.../web_mar_apr_13_AppraisingRRCorridors.pdf

Easements can totally wreck land values. I would only consider selling an easement if A. we receive recurring payments, B. there is a reasonable extinguishment clause or both.

Was your land condemned for one of the easements in 1977?

 

[Terrel L. Shields]

Was your land condemned for one of the easements in 1977?

Yes, original offer was $300. went to court and got the per acre value. No compensation more than unit value. The upgraded line a few years ago & left ruts. AEP blamed contractor, who was long gone. We had to plow, till, and smooth it ourselves.

 

[Howard Klahr]

Per you post, it doesn't change H&BU, back of the property, no future functional issues. I'm not seeing the damages here

There are two components in analyzing property takings 1) compensation for the taking itself, as described by Joe and 2) damages associated with the taking. These are two seperate and distinct valuation analyses

 

[Mark K]

It's a sewer line, under the ground, out of sight. A slender stick in the bundle. Once the grass grows one will never know without checking the deed.

Per you post, it doesn't change H&BU, back of the property, no future functional issues. I'm not seeing the damages here......

As mentioned, there are two components, compensation for loss of rights and damages to the remainder. The remainder may not be damaged but some easement documents take much more than one slender stick out of the bundle.

Most easement documents preclude the owner from building a permanent structure in the area plus any land improvements such as landscaping (trees, shrubs, gardens), fences,driveways, sidewalks are at risk of removal if/when the utility needs access for repairs or to install a larger or additional line. Depending on the easement document, the utility may or may not be responsible for replacing the land improvements.

Some easement docs say that any surface land improvements disturbed in the future will be replaced; others say, 'sorry, you're out of luck'.

 

[JTip]

I have a decent grasp on easements.....

Read the op again. Note his description of the subject and required area.

In his situation, it's a losing battle.

 

[Mark K]

....... no future functional issues......

I must have missed that part.

The ability to see into the future eludes me so as long as you're certain that the land use will never, ever change then the easement should be no issue.

 

[Elliott]

Nacho,
I've found that takings is an appraisal situation where you get to put yourself in the shoes of both the homeowner and the compensating organization. Some subdivision plats will show easements on the perimeters of all the lots with dashed lines and since those plats would show 5 or 10 foot easements on all the perimeters, its difficult to see how just one easement would be significant. From the home owner's position, he is giving up one of his property right "sticks" and is entitled to be made whole. Good luck, give it lots of thought and pull the trigger.

 

[Terrel L. Shields]

Here a lot of utility ROW is paid by the rod (16.5') and amounts to a relatively small amount, but it is something to watch out for. A few years ago a farmer drilling post holes dug into a gas line which was supposed to be buried 4' and it blew up ignited by the tractor and burn 40 acres and they didn't find much left of the farmer. The tractor was nearly molten. Drilling into an underground electric, water, or gas line can be a real issue and drilling into a sewer...ugh.