There are many things that commercial property owners, or persons interested in becoming a commercial property owner in Texas need to be aware of regarding how their property is used and how this impacts the value. One common example of this is commercial property easements in Texas and the effect this can have on property owners. Depending on the type of easement and property, this could have a bigger impact than you might think.
So, if you are planning on buying a commercial property with an easement in Texas, you should consider consulting with an easement dispute lawyer first. A commercial real estate attorney will have experience with these types of situations and can help you understand how this will impact you as the property owner.
Keep reading to find out what your property easement rights are in Texas and how this can impact the value of your property.
Common Types of Commercial Easements
To put it in simple terms, an easement is a legal agreement in Texas that gives a third-party the right to either use or access a portion of the commercial property. This is granted for a particular purpose, usually allowing a public or private entity to use the private land for essential services.
Here are some examples of common types of easements used for commercial properties:
- Shared parking
- Utilities
- Drainage systems
- Roadways
- General maintenance
- Ingress/egress and access
How Easements Can Impact Property Owners
Now that you know what a commercial property easement is in Texas, what does this mean for you as a property owner? Unfortunately, although easements are quite common, they can come with some downsides.
Here are some of the most common examples of how easements can impact commercial real estate owners.
Development & Expansion
Commercial properties with easements in Texas often have developmental limitations. This is because easements can create restrictions that limit the amount of usable space on your property. This can limit your business development or expansion.
Property Value
It is very common for Texas easements to reduce the value of commercial property. There are a number of reasons why this may be the case, some of which are dependent on the type of easement. You may experience reduced market value due to the lack of potential or flexibility for the property.
Business Operations
Unfortunately for some property owners, easements could potentially interrupt your business operations and flow of traffic for your customers and employees. This may be the case if maintenance is required, such as caring for public access or utility easements or maintaining landscape easements.
Access Disputes
A common drawback to having an access easement in Texas is the increased risk of property disputes. An access easement allows a third-party to access your property, usually on an as needed or regular basis. And disputes can arise if the access easement is being abused or there are disagreements over maintenance obligations.
That is why it is important that commercial real estate owners work closely with an easement dispute lawyer in Texas. An attorney can help you understand what your legal options are if easement disputes arise.
Reviewing Easements During Due Diligence
If you are purchasing a commercial property in Texas that has an easement, there are certain things you need to do. First, you will need to conduct a survey of the property, as this will help you to identify any easements on the land and will allow you to review the title records.
The next step you need to take during due diligence is to review how the easements affect the property. For instance, will the developmental potential be limited, or will you have certain easement obligations as the property owner?
A commercial property attorney can help you review any easements and the resulting title issues presented by them before you move forward with purchasing the property. In addition to this, they can help you negotiate the easement terms so that there is less risk of disputes coming up after your purchase.
Can Easements Be Challenged or Modified?
If you aren’t happy with the easement on your property, you may want to challenge it or have it modified. And although your options are limited, there are some ways you can go about doing this.
The best option available is to simply negotiate the easement agreement to come to terms that are more suitable for everyone involved. An easement may also be terminated if it has an expiration date or there is a significant change in conditions.
Additionally, easement relocation may be a possibility depending on the circumstances. You may be able to do this if you get consent from the third-party claiming the easement. Relocation without consent may also be possible if you meet the following criteria:
- Relocation doesn’t diminish the utility of the easement to the easement holder.
- Relocation doesn’t increase the burden on the easement holder.
- Relocation does not interfere with the purpose of the easement.
Keep in mind that this only applies to easements created by express grant.
FAQS
Can an easement lower the value of commercial property?
Yes, it is quite common for easements to reduce the property value.
What happens if a neighboring property owner blocks an easement?
This will usually result in an easement dispute. To avoid complex legal disputes, you and your attorney can first try negotiation with the neighboring property owner or potentially move forward with amending or terminating outdated easement agreements.
How do I find out if a property has an easement in Texas?
You will need to conduct a detailed survey of the property, which will identify any easements. Also, request a title commitment before the purchase of the property, as title companies can identify easements that have been recorded.
Get the Help of a Texas Commercial Real Estate Attorney Today
Owning a commercial property with easements in Texas can come with some challenges, which is why you will need to know what to expect. The best course of action for property owners is to get the help of a commercial real estate attorney in Texas so that you understand what this means and what your rights are. Contact us today at Sewell Sewell Beard LLC by calling us directly at 972-777-5390 to discuss your situation with one of our commercial real estate attorneys.