Easements & Real Estate

Easements, i.e. third-party rights of use, have a decisive influence on the value of a property or plot of land. The question of whether an easement increases or decreases the value of a property depends on its type and its impact on the property.

The following are relevant for the market value:

Walking and driving rights (e.g. rights of way): If a third party has the right to walk or drive across a property, this can restrict the owner's scope of use and lead to a reduction in value.

Line rights (e.g. for electricity, water and gas lines): Such easements restrict the development and utilization possibilities of a property and thus reduce its value.

Residential rights: A third-party residential right leads to a considerable reduction in the value of the property, as the owner cannot use or rent out the property himself without restriction.

Nature conservation requirements: An easement to protect flora and fauna can significantly reduce the value of the property.

Restrictions on usability:
An easement that restricts the possible uses of a property usually leads to a reduction in value. Typical examples are building restrictions, rights of way or landscape protection regulations.

Influence on potential buyers:
Potential buyers are deterred by existing easements, especially if they are restrictive or long-term. Reduced buyer interest inevitably leads to a reduction in market value.

Economic use:
In some cases, easements also have a positive effect. For example, a right of way can facilitate access to parts of the property that would otherwise be difficult to reach and thus increase its value. In some cases, pipeline rights can even increase the value if the easement creates a better infrastructure.

Long-term commitment and flexibility

Existing easements are often registered for the long term and cannot be changed easily. This severely restricts the flexibility for future changes to the property and thus potentially reduces the value because it limits the development possibilities of the property.

Make sure you find out about easements and their effects before making a purchase.
We will be happy to advise you.