Does Title Insurance Cover Easements?

Easements that have been recorded will be noted in your title report and covered by your title insurance policy. When an easement is not recorded or goes unreported (often for years), it might cause complications for a later — and often serious — proposed use of the property.

Is an easement in the title?

An easement is a real estate ownership right (sometimes known as a “encumbrance on the title”) that allows an individual or entity to use another’s land for a limited, but usually endless, period of time. Easement owners have a legal right to keep the easement in good repair and have lawful access across it.

What does it mean to insure an easement?

Easement – an interest in another’s land or a right of use over another’s property held by one party. Unless they are in connection with construction or demolition operations on or within 50 feet of a railroad, easements are “insured contracts.”

Who pays for a deed of easement?

Deeds of grant can be used to create easements. For example, if a landowner requires water and the only way to obtain it is to run water pipes through a neighbor’s property, a deed of grant can be written to allow water to be supplied through a defined channel of pipes over the neighbor’s property. The individual who benefits from this easement is generally liable for the costs of preparing the deed of grant, as well as the costs of pipe maintenance and water supply. The person who grants this right must not be involved in any financial transactions.

Are easements inheritable?

When a document provides an easement to a specific individual, the restriction may expire when that person dies or the property is sold. This type of easement is usually indefinite, inheritable, and assignable, and it remains with the property.

Are easements in gross insurable?

The easement had to be made for a specific reason (driveway, ingress and egress, party wall, etc.). Uninsurable is a general or vague purpose easement.

The easement description must include the easement’s purpose, as indicated in the easement grant.

If the precise text from the easement grant cannot be utilized, the following description of the easement’s purpose must be provided:

If exclusivity was claimed, it had to be specified explicitly in the instrument that created the easement.

Parol cannot establish appurtenant easements. While an easement appurtenant can be created by prescription, it is not insurable without a court order.

At the time of the easement’s execution, the grantors must have had full legal ability.

At the time of execution, all owners of the servient estate must have signed the instrument creating the easement.

The grantor cannot create an easement over land that he or she does not own. As a result, a tenant in common or concurrent owner with an undivided interest cannot construct an easement that applies to the shares of any other tenant in common or concurrent owner.

It is necessary to have proper joinder or consents from spouses, which must be recorded for record.

If all parties with record interests against the servient parcel did not join in the execution of the document that formed the easement, correct joinder or consents from the parties must be filed for record, or an exception to the non-joining parties’ rights must be made.

In most cases, two different chains of title must be examined: one for the dominant estate and another for the servient estate.

It may be essential to show two sets of exceptions in some cases: one for the dominant estate and another for the servient estate.

Ownership Of The Dominant And Servient Estates At The Time Of The Easement’s Formation

Different parties’ ownership at the time of the easement’s formation is acceptable.

It is acceptable to have ownership in the same party but have it severed at the time the easement is created.

When the easement is created through a mortgage, it is appropriate to have ownership in the same party.

An easement appurtenant is not created for insuring purposes if ownership is in the same party and not severed at the time of establishment.

The Easement Grant must have applied to the Dominant Estate’s owners in the same way that they hold title to the estate.

All flaws, liens, and encumbrances of record affecting the servient estate at the time of the easement’s establishment must be disclosed as exceptions affecting the servient estate (if still in existence).

The examination of the easement premises must be continued until the date of the policy that will insure the ownership of the easement, in order to determine whether the easement has been terminated either by voluntary release or by merger, and also to determine whether it is subject to the payment of any taxes and assessments. Unless the tax assessment of the easement premises specifically excludes the easement and the easement is assessed as a part of the benefited land, or state law provides that the enforcement of taxes and assessments on the easement premises will not destroy the easement, any unpaid taxes or assessments affecting the easement premises must constitute a Schedule B exception as of the policy’s effective date.

A valid exception must be made in Schedule B of the policy if the easement is reciprocal, that is, if the dominant estate is likewise a servient estate.

In Connection With The Easement To Be Set Forth In Schedule B, There Is A Need For An Exception

Any special burden, qualification, or restriction contained in the easement grant should be specified in the policy’s Schedule B.

Is it a matter of necessity? Remember that the tract that necessitated the easement must not have had access to a public road at the time it was built, resulting in the necessity.

Depending on how the easement was created, it may be essential to check for compliance with some additional standards. Easements, for example, must have been formed through valid and final legal actions by necessity or implication. We do not cover easements by prescription, implication, or necessity unless they are recognized by a final court order from a competent court.

When the only grant of the easement is by the mortgage itself, it may be insured in a loan policy. This can only happen if the owner of the easement premises is also the owner of the benefiting land, which is the one to be mortgaged. The owner then establishes an easement over the easement premises for the benefit of the mortgaged premises under the conditions of the mortgage. Any purchaser of the benefiting land at any foreclosure sale of the mortgage will benefit from this easement.

When a property owner conveys the property and wants to reserve an easement over the property for the benefit of a third party, this issue arises (an owner of adjoining land). Any interest generated this way is uninsurable.

An appurtenant easement does not benefit any adjacent land acquired by the dominant estate owner after the easement was created.

Are easements shown on Land Registry?

Easements, such as a right of way, are private rights that allow you to use another person’s property without owning it. Easements (or rights) over a neighboring parcel of property are divided into four categories. These include rights of way, light and air, support, and rights associated with manmade rivers.

  • There must be two neighbouring properties, one of which has the benefit of the right (this is a positive easement) and one of which has the burden of the right (this is a negative easement) (this is a negative easement).
  • The right must be recorded by deed and, in the case of registered land, in the Title Register for each concerned property.

Express Easements

An express easement is declared by deed and is recorded in the A Section of the Title Register for the dominant tenement (the land that benefits from the easement) and the C Section of the Title Register for the servient tenement in the case of registered land (the land burdened by it).

An express easement occurs when a vendor agrees to give the purchaser a right of way along his driveway in exchange for the sale of a portion of a plot of land. This will be noted in the transfer document, and the Land Registry will make an entry in the A section of the buyer’s new Title Register and the C part of the seller’s Title Register.

Implied Easements

Implied easements are not created by a deed, but rather by the law, with the courts considering the original parties’ intentions and how the land is utilized.

Easements of Necessity

A court-ordered easement of necessity only exists once it has been granted by the court. The easement is usually required because a property owner cannot have access to his land without crossing another parcel of land, i.e., his property is landlocked. In such cases, an application for an easement must be presented to the court on the basis that it is required for the enjoyment of the land. A similar right might exist if a gable wall needs to be repaired but can only be reached by entering another property.

The court will decide whether to award the easement by inferring the original parties’ purpose and determining whether the dominant or servient tenement will suffer more damage or inconvenience, and will issue an order accordingly.

When the requirement for an easement of necessity is no longer present, such as when an access path is built or a legal easement is created by deed, the easement of necessity is immediately terminated.

Easements by Prior Use

Simply by having previously used the property in a comparable manner, an easement can be created. The court will assume that the parties meant to construct the easement but failed to include it in the deeds.

  • That the use for which the easement is necessary existed prior to the subdivision of the properties.

Easements by Prescription

Easements by prescription are comparable to adverse possession (or squatter’s claims) in that they follow the open and continuous use of land without the owner’s consent for at least 20 years. The primary distinction is that the land is shared by multiple individuals. If the property owner takes action to protect his property rights before the aforesaid term expires, the prescriptive right will lapse, and any attempt to re-establish it will have to start over.

Prescription easements can be acquired by the common law, the Prescription Act of 1832, or a lost modern grant.

The asserted right of way has to be one that could have been granted under the law. A right of way claimed for the purpose of illegally dumping trash on land, for example, could not have been lawfully given and could not be acquired by prescription. A right to drive a vehicle through land that is a restricted byway without legitimate authorization, on the other hand, is an offense, but because lawful authority could have been issued, such a right can be gained by prescription.

Due to the operation of the British Transport Commission Act 1949, prescriptive rights cannot be claimed over railway land or land owned by the British Waterways Board.

Easements by Estoppel

The court creates easements via estoppel to avoid an inequitable outcome if the vendor misrepresented that he would give an easement to the purchaser but did not do so directly. The court would typically grant the easement if the purchaser bought the property in good faith and relied on the presence of such an easement as part of his choice to buy.

For example, the purchaser may inform the seller that he desires to construct a garage on a portion of the land being sold to him, and the vendor may agree to allow him access to the garage via a certain drive on his property. If no easement is provided by deed to effect such a right, but the purchaser relied on the vendor’s representation in buying the property, he is entitled to an easement by estoppel.

How long does a deed of easement last?

Easements are indefinite, although they can be terminated in the following circumstances: the dominant and servient tenements are owned by the same person; the dominant and servient tenements are owned by the same person; and the dominant and servient tenements are owned by the same person (unity of seisin rule) The dominant owner’s express release is accomplished by a deed. Implied release, such as non-use of the easement for more than 20 years; or legal operation.

Can easements be protected by registration?

For these reasons, a legal easement over unregistered servient land qualifies as a qualifying estate. If the dominant land is already registered, the dominant owner can use Form AP1 to request that the easement be registered as an appurtenant to the dominant land.

What amounts to disturbance of an easement?

The lawful impediment or annoyances created by the infringement of easement rights are known as easement disturbances. The Indian Easements Act of 1882, Chapter IV, Sections 32 to 36, deal with easement disturbance.