When you purchase a new commercial property, it may come with an easement. It is important to understand what this means and how it can affect your use of the property. An easement typically gives another entity the ability to access the property, although they generally cannot fundamentally change it or permanently occupy it.
One common example is an easement for utility companies. They do not plan to use the land continuously, but they need to be granted access when running plumbing lines, electrical lines or other infrastructure.
In other cases, the easement may be related to a nearby business. Another business owner may need access to the land so that their own property can function as intended. They may have had an easement with the previous property owner allowing access to the real estate, even though they do not have an ownership interest.
Do you have to uphold the easement?
In many cases, you are obligated to uphold the easement. Utility easements, as noted above, are one example. An easement appurtenant is often considered to “run with the land,” meaning that you must honor it even after purchasing the property because it is part of the transfer – and essentially part of the land itself.
That said, not all easements function in this way. In some cases, they are agreements between adjacent property owners that can be modified or even eliminated after a real estate purchase. This is why it is very important to carefully review the documentation and understand all of your legal rights and obligations related to your new commercial property.