Every day we learn something new in our business…
In one of the deals that we are currently working on, we have learned about a new term for us – easement.
So, what is an easement?
From Wikipedia – An easement is a non-possessory right to use and/or enter onto the real property of another without possessing it.
In our case, we have a property with a parking lot at the back with no access to the parking lot. The access is through the neighbour’s parking lot meaning that to get into our parking at the back the tenants must pass through our neighbour’s property.
ask yourself – does this property need an easement?
For us to be able to use the neighbour’s property there must be a signed easement document. During our due diligence, we have learned that such document is not recorded anywhere. However, to approve the mortgage, an easement document must be signed between all parties.
- you could agree to share the expenses on the easement
- you could agree that you are not carrying any expense and still allowed to use the property
- you could agree to pay a lump sum that will cover any future expenses
So, next time you consider a property, ask yourself – does this property need an easement? If so, Is one recorded at the county? What are the terms of the easement?
Happy Friday all,