Easement Question.

[Jfactory]

Hi, I am just wanting a little information on easements. We have been approached by a business across the road from us who would like to run sewage pipes to a sewer point beside our commercial property. The easement would be 2.5m wide and will run about 150m through our property.

We are rather new property owners and I am hoping to get a little info here from some pros

* Who will be responsible to maintain the sewerage pipes etc?
* Do we actually charge them for this access?
* What happens if we decide not to allow it, can they force us?


Thanks

 

[Tigerboy]

If you allow the sewer to run through or on your property and give the other owners an "easement", that will remain on your property FOREVER. It will mean that they have rights to enter and undertake works on your property FOREVER. It may also mean that in the future if you are intending on selling that your sale price may be affected.

Unless there is a compelling, and I mean really compelling, I would never agree to such a request.

 

[underdev]

Agreed! I would not allow this to happen, it will only have a negative impact on the potential future use for your property.

 

[Bats]

Totally agree!! where is the upside for you?

 

[Scott No Mates]

J, by the sounds of it, your block isn't exactly small ie at least 150 m long x ?? wide, so would I be right in guessing a couple of thousand m2?

How much of the land will be affected by the easement?

How will it affect the development potential? Will it prevent future subdivision? Can the area be utilised as a driveway/access without affecting development potential?

How much are they offering (don't disclose to forumites) - how does this compare to the market value of a similar parcel of land?

There is nothing forcing you to accept an easement across your land (unless it is being done by the electricity/water/gas utilities) - so you are in the driver's seat when it comes to getting the right price for your land. After all, the people across the road want it (why can't they drain closer to their site)? How much is it going to save them by draining across your land?

Providing an easement isn't necessarily the end of the world but all things should be considered when making a decision.

 

[westminster]

Is there any upside for your block such as sewer being available to it by running it through to their block?

I'd be hesitant to agree unless there was compensation.

 

[John M]

Keep in mind you probably won't ever be able to build on top of the easement, so if the easement runs through the middle of your land then it will have a significant adverse effect on your land's value and you would want an exorbitant payment if you allow them to do this.

If it runs down the boundary of your property it may not be so bad but I'd still want some good compensation regardless.

Is it possible to just sell them the piece of land they want to put the easement on? (this will depend on location of proposed easement, current building coverage ratio, local council regulations etc etc).

It wouldn't hurt to talk to an independent town planner to give some advice on what is required to do the easement, whether you have to, what effects it will have on the land etc etc. And then assess your options. Also ask the town planner what other options your neighbours have to get sewerage to their block. If your block is their only option, then you may be able to charge a little more

Also, consider what happens if they put an easement through your land, you establish some sort of 'lease agreement' for the land, and then they go bankrupt? You're left with an extra easement on your land. I would want them to be a considerably large company to guarantee you will be reimbursed regularly.

 

[marg4000]

This would require legal advice.

At least I would expect money to change hands for the right to have the easement, plus an iron-clad agreement for the property benefitting to pay 100% of future repair costs, and the agreement to attach to the property and become the responsibility of future owners.

However, as water (etc.!!) must run downhill, there may be avenues for you to be forced to allow an easement. Again, legal advice is your first step.

Marg

 

[Frontier]

You would typicaly negotate an upfront one-off payment to agree a new easement. It's not like a licence where you're paid an ongoing fee.