I found a nice 20 acres 30 minutes out of the city recently. It has a good ratio of wooded and field. It is part of a larger peice of land that is divided up, and there are no houses anywhere around. It is going for around 30k and has been on the market for a while. The only thing is that it is accessable from an easement going along another 40 acres from the road. Would this be a good purchase because of the easement thing? Also how much should I expect to have to put down on this land, because right now I think we would only be able to put 3,000 on it?
Thank you,
Wildbil
I would read the language of the easement very carefully. Do you have the right to improve it? If it degrades can you bring it back to original condition? Can you maintain it? I would check to see what the local laws are concerning rights of ingress and egress in you location.
Different states have different laws. In Virginia, you have the right to maintain it, regardless of the type of easement (Prescriptive or granted).
I would make sure it is a written easement and properly recorded at the court house and shown on a survey. It would be good if it is at least 50 feet wide because that increases the value of the property. If it is a prescriptive easement, make the sale contingent on the seller obtaining a written one.
Other than that, nothing wrong with it at all. Many older properties were divided that way.
We just pulled out of a deal on a house because of the easement. Their realtor and our old realtor was rather dismissive about the easement, but when I finally got a copy of it and read it, and mapped it on the plot, I realized it took up 25% of the property. Plus the way it was written. It would appear that I had the right to mow it, pay taxes on it, but I could not do anything with it besides look at it and pay for its up keep that someone else could use for their benefit.
As we are apt to say about many things here; depends. The above replies noted several of the things to look for. Read it carefully, or better yet have a lawyer read it, especially if it is not crystal clear.
We are involved with an easement to our property. Basically it states that all the parties (property owners = 2 of us at present, maybe another sometime) agree to share the maintenance of the road. We went into this thinking to ourselves that we'll do it ourselves if it came to that. The other folks are super though; but they die who knows what would happen?
I had to pass on two places because the easement was too long and I didn't want to have to maintain it or fight with the owners, and I couldn't improve it (pave, grade). I negotiated those rights in the easement to my current property and they are on file with the county. I had a lawyer, too.
I see no one has touched on the subject of the price. I will try and just let you know what my experiance was when I went looking. I have no idea what the prices are normal in Michigan. In most of the areas around me that price would make that land disappear for cash in about 5 minutes. If you think the price of 30k is high, then the owner might take a down payment of 10% and carry the rest. If the price is low, it probably means he is looking for a quick sale and cash in his pocket. He may take 3,000 and payments depending on what he is looking for. Give it a shot. In my experience most owners looking to finance and carry the risk of holding the mortgage have built that into the selling price and the price will be higher than most other similar pieces.
Bill, I be a bit slow most times. Can you clarify your post?
It sounds to me as though there is not an easement running through this property, rather you are concerned with the easement to your property. Is this correct?
If the access easement to your property is formal and documented, don't sweat that at all. Just read the easement details, and make sure you are within your rights to do road maintenance if necessary, but are not required to do so.
I think 10% down on unimproved property might be a little light, but you never know....
Good luck.
-f-
Quote from: NM_Shooter on February 18, 2009, 04:05:20 PM
Bill, I be a bit slow most times. Can you clarify your post?
It sounds to me as though there is not an easement running through this property, rather you are concerned with the easement to your property. Is this correct?
If the access easement to your property is formal and documented, don't sweat that at all. Just read the easement details, and make sure you are within your rights to do road maintenance if necessary, but are not required to do so.
I think 10% down on unimproved property might be a little light, but you never know....
Good luck.
-f-
I understood him to mean an easement for ingress and egress also Shooter. If it isn't the case, disregard what I said.
the road is to the property
My property is land locked and I have an easement to travel across my neighbors land to get to mine. It can not be denied in PA. If the language in the deed is clear and it's shown on an old map or two, there should be no problem. Upkeep could be an issue. I haven't had to deal with that yet.
Make sure you check into the legality of the easement and if you don't understand it, have someone translate for you. There is nothing wrong with an easement to your property if you know what it means to you. Another thing to keep in mind is that one of the things that drives the value of land is road frontage, because it can usually be easily surveyed off and sold as lots if need be. That's not to say you cant divide land down an easement, but it may be restricted. I doubt you'd want to do that anyone but something to keep in mind. Flag pole shaped lots are generally cheaper than if the same acerage was right on a country road. I myself would rather have the privacy.
They can not usually deny you the general right of ingress and egress, but what you have to go through to get there can be tricky. Such as how heavy or large a vehicle can use the easement? Is it just for the owner or all guests? Can you improve it? (grade, stone, pave?) Can you have contractors across it? Do you need to insure it if you do? Do you have to maintain it.
These are considerations depending on what you are going to build. Cement mixers and well drillers may not go to an area if the road is not developed enough for their trucks. Is the easement only for ingress and egress or is it for utilities too. These are two separate easements in many places. An easement for utilities can be a whole different ball game.
Real estate law is much more complex and very subject to variations due to the jurisdiction (state or even county in some cases) than you may know. I strongly recommend consulting an attorney who commonly practices in that jurisdiction and in real estate law before you make a sizable investment in any parcel with even a hint of access problems or unusual easements----what appears to be plain english to a layman can contain some real nasty surprises that a good RE lawyer can protect you from. An hour of his/her time may be the best $$ you can spend.
On the subject of Lawyers,
Don't let them bully you into an hourly rate either. For small set jobs like this, I usually get it to be a flat fee. Depending on how much work you need done, you decide which is better and tell them up front.
Flat fee-----yes. A simple review of the deed and easement language and a plain english explanation to you should not cost much and may save you a lot!