Selling a land-locked property can be a tricky business – but it doesn’t have to be.
In this post, we’ll explore the legalities and challenges of selling a landlocked property, so you can be better prepared for what lies ahead.
We’ll also provide some helpful tips on how to overcome these challenges, so that you can successfully sell your landlocked property.
Table of ContentsA landlocked property is a type of real estate that is inaccessible by public road due to its location. It often arises when larger parcels are divided and sold, or when a commercial complex is built. Because this type of property doesn’t have access to public right-of-way, it typically has less value than surrounding properties and can be more challenging to sell. Potential buyers should familiarize themselves with their options before investing in landlocked property in order to understand the legalities and challenges involved in selling it.
To increase the market value of your land, you need to get some type of easement.
The following are the main types of easements:
An easement by estoppel is a legal agreement in which one party allows another to use their property or right without going through the normal legal process. This can be beneficial for both parties involved, making it easier than going through the paperwork process. When selling a landlocked property, an easement by estoppel may be necessary if there is no existing easement and adjacent neighbors have not agreed to allow access.
In order to create an easement by estoppel, the landlocked owner must prove several elements including that an easement exists, that they are entitled to use it, and that the other party should have known of their right to use it. It can be helpful for both parties involved in the sale if a legal professional helps with filing an easement by estoppel as it can be more difficult than expected in practice. Losing such a case could mean extra costs for legal fees and difficulty in selling the landlocked property.
A prescriptive easement allows a property owner to use an accessway (such as a driveway or path) for a set period of time. The landowner must prove that the use of the accessway has been open and notorious, continuous and exclusive over the prescribed time period in order to be granted this easement. Variations between states on how prescriptive easements work exist, so it is important for landlocked property owners to consult with local legal counsel before attempting to sell their land. Additionally, some states allow for adverse possession which involves claiming that the landowner has used an accessway without permission for a certain length of time; however, all requirements must be met in order to qualify for this type of easement.
An express easement is a legal document that grants access to landlocked property. This type of easement can be beneficial for the owner of a landlocked parcel, as it provides access to public roads and other areas from which they would otherwise be cut off.
The process for obtaining an express easement is relatively straightforward and generally requires just a few steps. However, if the neighboring landowner does not agree or is unable to grant an easement, then the process will become more complicated and time consuming.
It is also important to note that when setting up an express easement agreement, it should ideally be done with the help of a real estate lawyer in order to ensure security for both parties involved. In addition, if possible, it should be formalized in writing rather than relying on verbal arrangements between neighbors when selling or transferring ownership of the landlocked property in future transactions.
An easement by necessity is a legal declaration that grants landlocked property owners access to their land. When selling raw land, the owner must be able to prove through a deed and title search that both the landlocked property and the neighboring property were once owned by the same person in order for an easement by necessity to apply.
Filing for an easement by necessity may come with legal costs, as well as an angry neighbor if granted. However, there are exceptions, such as when a federal government grants a land patent.
An implied easement is a type of easement created by the circumstances surrounding a particular parcel of land. It may be present even if there is no written agreement or deed in place.
Implied easements can be used to provide access to landlocked properties that are otherwise inaccessible, such as those owned by a farmer surrounded by other tracts of land but with no physical route between them. The farmer may have an implied right to use the dirt road across their neighbor’s 35-acre tract, for example, if they had been using it for many years prior to its division and their 5-acre parcel contains a barn accessed solely by this private dirt road.
When selling landlocked land, it is important for buyers and sellers both to be aware of any such existing rights in order to avoid legal issues down the line.
It can be difficult to sell a landlocked property due to the limited access and lack of potential buyers. Additionally, legal negotiations and compensation related to these properties can be more complex than with other types of real estate, while lenders may also be less willing to finance a loan for a landlocked property. Emergency services may also have difficulty accessing the property, which can further complicate matters. Furthermore, since landlocked properties don’t appreciate in value the same way as those with access to a paved public road, they may not be as attractive or desirable for the majority of buyers.
Selling a landlocked property can present a variety of risks for potential buyers and sellers. Limited access to the property can be an issue, as well as potential legal negotiations that may need to be undertaken in order to come up with an acceptable solution.
Finally, there is always the risk that current zoning regulations prevent development on the landlocked property which could significantly decrease its value or make it impossible to sell altogether.
When selling landlocked parcels, it is important to have detailed knowledge of local laws in order to reduce the likelihood of costly legal disputes. Knowing the laws and regulations that apply to the sale can help ensure that all parties involved are protected and that proper steps are taken throughout the process. Seeking legal advice is also essential when selling a landlocked property in order to guarantee compliance with applicable laws.
An easement is an agreement between two landowners which grants one landowner the right to use another’s property for a specific purpose, such as accessing a road or a body of water.
It can be difficult to obtain an easement because both landowners must agree on the terms and the owner of the property may not be willing to grant access for any number of reasons.
Additionally, filing a lawsuit for access to your property can be expensive, time-consuming, and stressful.
Investors generally view landlocked properties as having a reduced value due to the lack of road access, making them a less desirable investment.
Furthermore, obtaining access rights to the property can involve lengthy negotiations or even legal battles, further complicating the process. Additionally, lending challenges could arise when looking for financing from banks or other institutions due to this limitation of access.
Finding a qualified real estate attorney to handle the legal aspects of selling a landlocked property can be difficult. Additionally, as hiring an attorney is often expensive, some people attempt to save money by attempting to do it themselves without fully understanding their risks or possible future issues.
As such, it is important for those looking to sell a landlocked property to conduct thorough research in order to find an attorney they trust and who already has the necessary experience with this type of real estate matter.
One of the risks associated with selling a landlocked property is that emergency services may not be able to reach it easily due to the limited access. As such, this can put buyers at risk in an emergency situation.
When selling a landlocked property, disputes over easement rights or access agreements may arise as the buyer and seller cannot come to an agreement on this matter.
Without an easement agreement in writing, the two parties may face legal battles that could be expensive, time consuming and stressful.
In some cases, even court intervention might be necessary if both parties cannot agree on terms for accessing the landlocked property.
Having a landlocked property is more risky as it requires additional investment of time and money to gain legal access.
Accessing the property can be challenging when selling, as potential buyers may hesitate due to limited access and the difficulty of emergency services being able to get there easily.
Furthermore, obtaining legal access is not guaranteed and the process varies greatly from place to place.
The cost of getting legal access may also create hurdles for the seller in finding a buyer willing to take on this additional expense before the sale.
The risks associated with selling a landlocked property include accessibility issues and legal negotiations. It can be difficult for emergency services to access the property, which may make lenders less willing to finance a purchase. Additionally, there is often a lack of potential buyers due to the limited transport options available. As such, it is important for those considering buying or selling a landlocked property to seek professional guidance before making any decisions.
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