When buying commercial property, one important thing to check is if there are any easements on the property. These allow other people to access this property and use it in specific ways.
In some cases, these may be necessary. For instance, there may be a utility easement so that utility companies can provide services or perform maintenance. But in other cases, the easement may be an agreement with other property owners in the area. For instance, two businesses may share a driveway, and one business owner may have an easement to use that property.
Does this give them any ownership?
No, even if someone has an easement in place, it doesn’t mean that they get any ownership in that property. They can’t build on it, they can’t change it, and they can’t prevent other people from using it. They can just use it themselves in the one specific way defined in the easement.
Do you have to uphold it?
If you’re buying the property, it’s also important to look into what type of easement it is. In some cases, you may be able to decide that you want to cancel the arrangement. In other cases, the easement can be attached to the land. This is often called “running with the land,” and so it has to be upheld by anyone who buys that property. In that case, it’s definitely something that you want to know about in advance so that you can be sure it’s the right investment for your business.
Complications around easements and land use can sometimes arise, so be sure you know what legal steps to take.
