An easement in gross is a legal right that allows an individual or entity to use another person’s property for a specific purpose without owning it. Unlike easement appurtenant, which is tied to the land itself, an easement in gross benefits a person or organization rather than a parcel of property. Common examples include utility companies accessing land to maintain power lines or pipelines. This type of easement is often established through agreement or necessity and typically does not continue if the property is sold, as it is personal to the holder.

A financial advisor can help you understand how an easement in gross affects property value and advise you on how it could impact your real estate portfolio.

What Is an Easement in Gross?

An easement in gross grants the right to use another’s land for a defined purpose, typically for the benefit of an individual or organization rather than the property itself. It is most commonly associated with commercial purposes, such as utility companies maintaining infrastructure like gas pipelines, power lines or communication cables. 

Easements in gross can also be personal, granting an individual the right to access land for recreational or other specific uses, such as fishing or hiking. These rights are usually non-transferable and terminate if the holder no longer needs the easement or if the purpose for which it was created no longer exists.

Easements in gross often require clear documentation to outline their terms, including the scope of use, duration of the arrangement and any limitations. For commercial easements, the agreement may also detail maintenance responsibilities and liability considerations. This clarity helps prevent disputes between property owners and easement holders.

Easement Appurtenant vs. Easement in Gross

The primary distinction between an easement appurtenant and an easement in gross lies in their attachment to land. 

An easement appurtenant benefits a specific parcel of land, meaning it runs with the land, transferring to new owners when the property is sold. For instance, a driveway shared between two properties creates an easement appurtenant, allowing continuous access for the benefiting property.

Conversely, an easement in gross benefits an individual or entity rather than land and does not run with the land. This makes it inherently personal and tailored to specific uses. Commercial examples, such as utility access, are tied to the company holding the easement, while personal examples, like a fishing easement, are unique to the individual. 

How to Create an Easement in Gross

Creating an easement in gross typically involves a formal agreement between the property owner and the easement holder.

The process begins with drafting a written document that clearly defines the purpose, scope and duration of the easement. Both parties should negotiate terms, including any maintenance responsibilities or access restrictions, to avoid future disputes. For example, a utility company might specify the exact area needed to install and service infrastructure.

The agreement should then be notarized and recorded with the local land records office to establish its legality. In cases where the easement arises from necessity, such as a landlocked property requiring access, court intervention may be required to grant the easement. Consulting a legal professional ensures the agreement complies with local laws and protects both parties’ interests.

How to Terminate an Easement in Gross

Terminating an easement in gross requires addressing its specific purpose and terms. If the purpose of the easement no longer exists—such as when a utility company removes infrastructure—the easement can naturally end. Similarly, voluntary relinquishment by the easement holder can lead to termination, often documented in writing and recorded with the local land records office.

Abandonment is another route for termination. If the holder ceases to use the easement for an extended period and shows no intent to resume use, the easement may be deemed abandoned under certain legal conditions.

Mutual agreement between the property owner and the holder is also possible, where both parties consent to end the easement. In contentious cases, courts may intervene to settle disputes over termination, ensuring compliance with local laws and protecting property rights.

Real World Example of Easement in Gross

A common real-world example of an easement in gross involves utility companies. Consider a power company that holds an easement in gross to install and maintain power lines across privately owned farmland. The easement allows the company’s workers and equipment to access the land for repairs or upgrades without requiring ownership. 

However, this easement does not transfer if the farmland is sold, as it benefits the power company, not the land itself. By securing the easement in gross, the utility company ensures uninterrupted service to customers while clearly defining its rights and responsibilities regarding the property.

Bottom Line

Easements in gross provide tailored access rights that serve specific purposes, benefiting individuals or entities without attaching to land ownership. These agreements play a key role in public infrastructure and personal arrangements, balancing the needs of easement holders and property owners. The flexibility and personal nature of easements in gross make them valuable tools for various commercial and recreational uses. By understanding their creation, operation and termination, property owners and stakeholders can effectively manage these rights and avoid potential disputes.

Real Estate Investment Tips

• A financial advisor can help you analyze real estate investments and manage risk for your portfolio. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• When you buy a home, you’ll need to factor in property taxes as an ongoing cost. SmartAsset’s property tax calculator can help you estimate how much you could owe.

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