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Just make sure that you are working on the actually dimensions of the block for future development potential not on 'assumed' dimensions based on the current house which as you now know is hanging into the neighbours.

You really need to find out what it is. Most easement of benefits in my state are for the use of a rear laneway giving you the benefit to be able to use it. Your soli can look into the easement and find out what it is exactly but I would be less worried about an easement of benefit than an...