Easement in Gross: Definition, Examples, and Key Insights

An easement in gross is a legal right to use someone else’s property for a specific purpose. It’s common in real estate and can affect property value and ownership. This type of easement is commonly used by utility companies, for example, allowing them to install and maintain pipelines or electrical lines. But it has plenty more uses, as it’s a convenient way for organizations or individuals to fulfill public or private needs without taking over ownership of the land.

Knowing about them can help property owners and real estate professionals make informed choices. In this article, we’ll break down what an easement in gross is, how it differs from other easements, and its legal implications.

What is an easement in gross in real estate?

An easement in gross definition is when a person or organization, called the owner of the easement, gets permission to use land they do not own, directly from the property owner. To be used just for one or more specific purposes. 

It is different from other easement types since it is not coupled with land ownership; hence, it serves an individual or an entity rather than a property that may be adjacent to it. These are usually bound by terms and conditions, for example, they might restrict it to only certain people or for only a certain number of years.

Common examples are where a utility company installs and even maintains power lines or water pipes on private property.

These easements are mainly of two kinds:

Personal easements: These give an individual the right to use someone else’s land for their own benefit, such as a neighbor having permission to use your driveway. This right usually ends when that person passes away and is not normally transferable to others.

Commercial easements: These are for business purposes, most often used by companies that need to maintain infrastructure. For example, a utility company may have the right to access your property to service a gas pipeline or maintain a cell tower.

The characteristics of an easement in gross real estate include:

No transfer of ownership: The property still belongs to the owner, but the easement holder has permission to use it. Like how a power company can run lines through your land without owning it.

Not tied to any land: Unlike easements appurtenant, which benefit a neighboring property, an easement in gross benefits a specific person or company. You don’t have to be a neighbor to receive one.

Purpose-specific: These rights are granted for a particular reason, such as placing building setback lines or allowing access through private land. For example, a city can get permission to build a walking path across part of your property.

Common examples of easements in gross real estate

Utility easements: Various utility companies acquire easements in gross for laying and maintaining the infrastructure, such as electrical lines, water facilities, and gas pipelines. This is done to achieve access to private properties without necessarily owning them.

Conservation easements: A landowner may grant one to a conservation society to conserve land features, limit development areas, or protect the habitats of a particular species.

Access easements: Sometimes, landowners allow people to use easements to reach a specific piece of property. This could include fishing ponds or scenic spots that are hard to get to.

Easement in gross vs. easement appurtenant

Understanding the difference between these two types of easements:

Attachment to property: Easements appurtenant are tied to land ownership, benefiting a neighboring property (dominant tenement), whereas easements in gross are attached to individuals or entities rather than properties.

Transferability: Easements appurtenant usually run with the land, whereas only commercial easements in gross are transferable.

Purpose: Easements in gross usually serve commercial or public needs, whereas appurtenant easements are mainly for private, property-to-property use, such as driveway access between neighbors.

Real-life scenario

Imagine a homeowner who owns a scenic hillside property with direct access to a popular hiking trail. A neighbor who lives nearby, but does not have direct trail access, proposes to negotiate, so they can cross the homeowner’s land to reach the trail.

The homeowner sees this as a chance to generate some extra income, but doesn’t want to limit the property’s resale potential in the future. As a solution, the homeowner agrees to a limited easement in gross, allowing the neighbor access only during weekends and holidays.

Consideration

Both parties work out terms for access: the neighbor requests permission to use a path on the weekends, allowing them to reach the trailhead. The homeowner agrees to grant access for $2,000 a year, set to last for an initial period of 5 years. This agreement gives the neighbor access while generating extra income for the homeowner.

Termination

Since this is an easement in gross, the right to access does not transfer if the property is sold or if the neighbor moves away. This setup ensures that the homeowner can later sell the property without a binding access requirement, keeping the land’s resale value intact. Alternatively, the homeowner and the neighbor can mutually agree to terminate the easement if it no longer serves either party’s needs.

This easement provides the homeowner with flexibility while giving the neighbor temporary access, highlighting the balance this arrangement can offer.

Legal implications of easement in gross

Legal rights and responsibilities come with it:

1. Property owner rights: While the land remains with the owner, they must allow access as agreed. Any interference with the easement holder’s rights could result in legal action.
2. Easement holder rights: The easement holder can enter the property to fulfill their intended use, but must avoid causing unnecessary damage. Overstepping these rights may lead to restrictions or even termination by the court.
3. Court interventions: If the easement holder excessively burdens the property, the owner can seek legal orders limiting access or request compensation for any damage caused.

How does an easement in gross affect property ownership?

This kind of agreement can significantly impact how landowners use and enjoy their property. Here’s a look at the various ways these easements might affect land use, privacy, and potential earnings for property owners:

• Privacy implications: Utility easements, especially those granted to utility companies, can reduce a property owner’s sense of privacy. For instance, one can allow workers or vehicles to access a portion of the property to install or maintain infrastructure like pipelines or electrical lines. This frequent access can feel intrusive, impacting a property owner’s enjoyment of their private land.
• Restrictions on property modifications: Landowners often face limitations on certain types of construction or landscaping within the easement area. For example, the terms of an easement may restrict building permanent structures or planting large trees that could obstruct access to utility lines or other easement-related infrastructure.
• Revenue opportunity: Property owners sometimes receive financial compensation for granting easements in gross, particularly to utility or communication companies. This compensation can be a single payment or recurring fee, providing an income stream in exchange for allowing easement access. Conservation groups might also offer payments to protect and preserve certain natural features on the land.

These points show how to create a special arrangement. This arrangement can help both property owners and easement holders. It also sets clear boundaries and expectations.

Wrapping up

In summary, easements in gross are rights given to people or companies. They allow specific land use without transferring property ownership. 

These are often used by utility companies or conservation groups to provide access and usage rights while preserving landowner control. 

To pass the real estate licensing exam, you need to understand the concept well. Especially the difference between gross and appurtenant easements. But you will need a bit more, and get familiar with their legal and practical effects.