Although moving to the country can create a newfound sense of freedom, rural homebuyers may be caught off guard by the legal limitations of their property rights. That’s why it’s important to understand the extent of any zoning laws, easements or access agreements before closing on your country dream home.
As a lender that specializes in financing homes in the country and rural communities, we’ve developed the following outline to help inform you about the potential legalities of your rural property purchase.
Zoning Laws
Zoning laws directly impact rural property owners by classifying land into districts with regulated uses. Each county has its own criteria for how property is classified. Common classifications include residential, commercial, industrial and agricultural areas.
In addition to confirming the zoning designation, it is important to identify the permitted uses and restrictions that apply to your property. It’s also a good idea to contact the local government office to obtain a copy of the applicable zoning map to consider compatibility with neighboring areas.
Easements
Easements grant limited rights to use another person’s property for a specific purpose, such as allowing a neighbor access to a private road or permitting a utility company to install a fiber optic line.
In general, easements are contractual agreements that fall under two categories: appurtenant easements or personal easements.
Appurtenant Easements
An appurtenant easement benefits an individual in their capacity as a landowner. Unless the agreement states otherwise, this type of easement runs with the land and is transferred automatically when the property is sold to a new owner.
For example, if a landowner owns a parcel of land with access to a river and grants an appurtenant easement to their neighbor for use of that access, the easement remains in place when the property is sold. Similarly, if the neighbor sells their property, the new owner retains the same easement rights.
Personal Easements
Also known as an easement in gross, personal easements are granted to a specific individual or entity. Once the property changes hands, the easement may be terminated or transferred only with the landowner’s consent.
Because lending institutions are responsible for reestablishing a personal easement if the borrower fails to make their mortgage payments, most lenders require an appurtenant easement to limit this liability.
One of the best ways for rural homebuyers to avoid any unsuspecting easement issues is to work with their lender to conduct a title search before purchasing the property. This is an important step in protecting homebuyers against any potential title discrepancies that may arise in the future.
Access
Contrary to popular belief, unrestricted road access is not guaranteed with every rural property purchase. In some cases, accessing a property may require crossing private property lines.
If a property cannot be accessed from a public road, confirm a deeded access agreement exists with the adjoining landowners. Road use and maintenance terms should also be negotiated to maintain good neighbor relations.
Property rights are within every homebuyer’s control as long as they are aware of the legal implications of their rural property purchase. FCSAmerica can help you navigate these important details. Contact us today to learn more.
