PROPERTY EVALUATION (RESTRICTED REPORT)
EASEMENT VALUATION
Introduction :
The scope of work is to appraise the easement area that covers the section of Lot C-81 of parcel 673-020-004 that will be sold to Outdoor Resorts, the RV community where the subject is located. The Coachella Valley Water District, the existing owner, will be selling the land but will maintain access and pipeline easement rights. The overview that follows was sourced from The Appraisal of Real Estate, 9 th Edition, Pub. The American Institute of Real Estate Appraisers. Additional sources are cited where applicable. Easements represent another division of property ownership. An easement is an interest in real property that conveys use, but not ownership, of a portion of an owner’s property. Easements frequently permit a specific portion of a property to be used for access to an adjoining property or as a public right-of-way. Although surface easements are the most common, subterranean and overhead easements are used for public utilities, subways, and bridges. By definition, the ownership of real estate is endowed with a bundle of rights. The concept of bundle of rights maintains that like a bundle of sticks, real property ownership may be wholly intact (fee simple estate) or may be conveyed in part to a third party. Easements may be either permanent or temporary in nature, with either specific or indefinite time frames. Common surface easements may allow for drainage, flowage, railroads and highways. These types of easements severely impact the surface area. 4 Easements are controversial, as there is little free market choice to establish value. An easement is generally located where buyers require them and is not withstanding the owner’s plan. Easement buyers are usually “project specific” and tend to disregard certain future effects. Clearly, a property that acquires an easement is the beneficiary of additional rights; one that is subject to an easement is burdened. Easement rights can be conveyed in perpetuity or for a limited time period. An easement can be created by a contract between private parties or it can be arranged by states, municipalities, or public utilities through the exercise of eminent domain. An easement that affords ingress and egress to an otherwise landlocked parcel increases its value. The value of an easement is usually estimated as some part of the amount of value it adds to the property it benefits; the burdened property’s loss in value can also be used to indicate the value of an easement. In all cases, an easement is a partial interest in the burdened real property estate. It is created by a deed and has measurable value.
Overview of Easements:
4 “Easement Valuation” by Donald Sherwood, SR/WA
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