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What role do easements play in commercial property transactions?

On Behalf of | Oct 15, 2024 | Real Estate |

Easements play an important role in commercial property transactions. Understanding easements is necessary for both buyers and sellers. Easements grant certain rights to use a part of a property for specific purposes, which can impact the property’s value and use.

Types of easements

Different types of easements can affect commercial property transactions. Common types include utility easements, which allow utility companies to access parts of the property for maintenance or repairs, and access easements, which provide the right to cross a property to reach another area. Easements can either benefit or restrict property use, so understanding their type and purpose is important in any transaction.

Easements and property value

Easements can have a significant impact on the value of a commercial property. An easement that allows public access or utility company rights might reduce the value because it limits how the property can be used. On the other hand, an easement that provides access to a landlocked property can increase its value. Property buyers should carefully review any existing easements to understand how they might impact future development or use.

Negotiating easements in transactions

When buying or selling commercial property, negotiating easements can be crucial. Buyers should ensure they understand all easements before finalizing a purchase. Sellers may need to provide clear information about existing easements and their implications. In some cases, buyers and sellers can negotiate changes to easements to better meet their needs. Legal advice can help ensure that easements are properly addressed in transaction documents.

Moving forward with easements in mind

Easements can have a major impact on commercial property transactions in Utah. Understanding the type, purpose, and effect of easements helps both buyers and sellers make informed decisions. Proper handling of easements can ensure smoother transactions and protect the interests of all parties involved.