Conservation Easements
A Conservation Easement is a legal document in which a landowner agrees to permanently refrain from certain uses of his property in order to preserve the environmental integrity of the land. After signature, it is recorded in the public deed records so that it is binding on any subsequent owner of the property. Often confused with “positive easements” such as rights-of-way, a conservation easement is a “negative” easement that imposes restrictions. In other words, the easement prevents the landowner from using the property to the maximum extent allowed by current zoning.
A conservation easement typically reduces the number of residential housing units that are allowed by zoning. It also prohibits the destruction of vegetation or extraction of minerals. It prescribes management practices to which the landowner must adhere and which are detailed in the document. For example, agricultural lands may be required to be farmed by the then-current techniques determined by an independent expert. It also requires compliance with local, state, and federal regulations. A conservation organization is required to monitor the practices of the landowner.
Backing up the terms of the conservation easement is a document (Baseline Documentation Report), kept on file by the conservation organization, that presents the existing conditions of the property and the current management practices. This document serves as a baseline for future monitoring and is updated annually as part of the monitoring program. If changes are made to the property that are agreeable to the conservation organization, they are recorded in the baseline documentation report.
The conservation easement document is perpetual. Since the document is recorded in public deed records, when the property is sold the easement will show up on the title report and will be binding on future owners. The document also includes a cy pres provision, which mandates any court that might be required to find a new organization to hold these rights to find a similar organization to accept the conservation easement.
To be considered a “qualified conservation contribution” for the purpose of tax deduction, the easement must be perpetual and donated to a qualified conservation organization. It must also satisfy one ormore of the following general standards. It must: 1) conserve land area for the general recreation or education of the general public; 2) protect a natural habitat or similar ecosystem; 3) preserve open space if it yields a significant public benefit; or 4) preserve a historically important land area or certified structure.
The information on this website is intended for educational purposes only. Seek professional advice before making legal or financial commitments regarding land ownership and/or management.