Easement in Gross vs Appurtenant: Definition & Examples

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 is a legal right granted to a person or organization, called the easement holder, to use land they do not own for one or more specific purposes.

It differs from other easement types because it is not tied to ownership of another parcel of land. Instead, it benefits an individual or entity rather than a neighboring property. These easements are usually controlled by terms and conditions, so the agreement may limit who can use the land, how the land can be used, or how long the right lasts.

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

Personal vs. commercial easements in gross

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 to lay and maintain infrastructure such as electrical lines, water facilities, and gas pipelines — accessing private property without owning it. These utility easements are especially common in planned unit developments (PUDs), where the developer typically grants easements in gross to utility providers as part of the community’s original infrastructure plan before any homes are sold.

Billboard easements: A sign company may receive the right to place and maintain a billboard on private land. This is a common commercial easement in gross because the benefit belongs to the company, not to a neighboring parcel.

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. Rhode Island’s Constitution (Article 1, Section 17) guarantees public rights along the shoreline — creating what functions as a public easement in gross on every waterfront property in the state. This affects property values and what buyers can build near the coast, and the free Rhode Island real estate practice exam tests how these shore access rights interact with private ownership. New Hampshire takes a different approach: its ‘current use’ tax program (RSA 79-A) incentivizes landowners to place conservation easements in gross on their property, held by organizations like the Society for the Protection of NH Forests. These personal easements restrict development permanently in exchange for tax reductions. The free New Hampshire real estate practice exam covers how conservation easements in gross affect title and future development rights.

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. Idaho has some of the largest utility easements in the country — Bonneville Power Administration transmission lines cross hundreds of miles of private land under commercial easements in gross that transfer with each utility sale. The Idaho real estate salesperson exam tests how these utility easements affect property rights. Delaware’s coastal properties often carry public access easements along the bay and Atlantic shoreline. The Delaware real estate salesperson exam covers how these easements interact with beachfront property values.

Runs with the land: When an easement runs with the land, the right or burden generally continues when the property is sold. That is why an easement appurtenant usually binds future owners, while a personal easement in gross usually does not unless the agreement or applicable law makes it 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 is a bilateral contract — the homeowner promises access and the neighbor promises payment. Both parties are legally bound to their commitments for the duration of the easement.

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?

An easement in gross directly affects the owner’s bundle of rights — specifically, it limits the rights of exclusion and control. The owner retains possession and can still sell the property, but they cannot prevent the easement holder from accessing the designated area. Here’s how these limitations play out in practice:

• 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 infrastructure. These restrictions are different from deed restrictions, which limit what the owner can do with the property based on conditions in the deed itself, such as HOA covenants or use limitations. A property can have both an easement in gross and deed restrictions at the same time, each limiting the owner’s rights in different ways.
• 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. Keep in mind that when a property with an existing easement is sold, buyers financing through a package mortgage or any other loan type will see the easement reflected in the appraisal — the lender evaluates the property’s value with the easement restrictions factored in, which can affect loan approval.

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.

FAQ

Eloise is buying a property where a gas company has a right-of-way for underground lines. What type of easement is this?

This is an easement in gross. The gas company holds the right to use part of the property for a specific utility purpose, but that right benefits the company rather than a neighboring parcel of land.

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 your real estate licensing exam, you need to understand the concept well, especially the difference between easements in gross and appurtenant easements. You also need to know how these rights affect ownership, title, financing, and future property use.