On commercial property, the easements that cross a site and the legal right to reach a public street can matter as much as the building itself. Let me explain how easements and access work in Virginia and how I make sure you have what you need.
Written by Adam L. Engel, Esq., Principal and real estate attorney at Prime Title & Escrow
A commercial property has to be reachable and usable, and that often depends on rights that are not obvious from a drive by. An easement might give a neighbor the right to cross your parking lot, or give you the right to use a shared driveway, or carry a utility line under your land. Legal access to a public road is fundamental, because a site without it is hard to use and hard to finance.
Sorting out easements and access is part of reading the title commitment and the survey together, which I describe in my guide to the commercial title commitment and the ALTA survey.
An easement is a right to use someone else’s land for a specific purpose. Some benefit your property, like a right to cross a neighbor’s driveway, and some burden it, like a neighbor’s right to cross yours. Legal access to an open public street is essential for a commercial site. The survey locates these rights, the title commitment lists them, and specific title endorsements can insure that your access and your easements hold up.
What an easement is
An easement is a right to use land that someone else owns for a defined purpose, without owning the land itself. A common kind is an appurtenant easement, which benefits one parcel and burdens another, and runs with the land when either parcel is sold. For example, a back lot might have a recorded easement to use a driveway across the front lot to reach the road. Other easements are held by a utility or a government and exist to carry lines or provide service. Either way, an easement is a property right that shows up in the public records and affects how a site can be used.
Easements that benefit you and easements that burden you
When you buy commercial property, you want to know both the easements that help you and the ones that constrain you. An easement that benefits the property, such as a right to use a shared access drive or parking, may be essential to the operation, and you want to confirm it is properly recorded and will pass to you. An easement that burdens the property, such as a utility line corridor or a neighbor’s right of way, may limit where you can build or expand. I review each one against your plans for the site.
A parcel that touches a road does not automatically have the legal right to use it, and a parcel that does not touch a road may depend entirely on an easement to reach one. On a commercial site, confirming legal access is fundamental.
That is why title companies offer an access endorsement, which insures that the property has actual vehicular and pedestrian access to a named, open public street. On a commercial purchase I make sure access is confirmed and, where appropriate, insured, so the right to get in and out of your property is not left to assumption. Adjacency to a road is not the same as the legal right to use it.
Shared use and reciprocal easement agreements
Shopping centers, office parks, and multi parcel developments often run on a reciprocal easement agreement, sometimes called an REA, or a declaration of covenants. These recorded documents govern shared driveways, parking, signage, utilities, and maintenance among separately owned parcels. If you are buying a parcel inside one of these arrangements, the REA can be as important as your deed, because it controls how your parcel interacts with its neighbors. I read it as part of the title review so you understand the obligations and rights that come with the property.
How the survey and title coverage work together
The survey and the title commitment are the two tools that bring easements into focus. An ALTA survey locates the recorded easements, the visible ones, and the access points, and ties them to the matters listed in the title commitment. The commitment lists the easements and rights of way as exceptions. The right endorsements can then insure your access and confirm agreement between the policy and the survey, which I describe in my guide to commercial title insurance. Together they turn a list of recorded rights into a clear picture of what you can and cannot do with the site. The difference between a survey, an appraisal, and an inspection, if you are newer to this, is covered in my article on survey, appraisal, and inspection.
Why this matters before you commit
Easement and access problems are far easier to address during due diligence than after closing. An easement you did not know about can block an expansion, and a gap in legal access can stall a sale or a loan. Whether your property sits in Central Virginia, Northern Virginia, or anywhere in West Virginia, I review the easements and confirm access early, so you know exactly what comes with the land before you are committed to it.
Send me the property and the survey and I will review the easements, confirm legal access, and arrange the title coverage your deal needs.
Get Your Free Quoteor call (703) 552-4155Frequently asked questions
What is an easement?
An easement is the right to use land owned by someone else for a specific purpose, without owning the land. An appurtenant easement benefits one parcel and burdens another and runs with the land. Utility and access easements are common examples that appear in the public records and affect how a site can be used.
Why is legal access so important for commercial property?
Because a site has to be reachable to be usable and financeable. A parcel that touches a road does not automatically have the legal right to use it, and some parcels depend on an easement to reach a public street. Confirming access protects your ability to get in and out of the property.
What is an access endorsement?
It is a title insurance endorsement that insures the property has actual vehicular and pedestrian access to a named, open public street. On a commercial purchase it provides assurance that legal access exists rather than leaving it to assumption, which is why lenders and careful buyers often require it.
What is a reciprocal easement agreement?
A reciprocal easement agreement, or REA, is a recorded document that governs shared driveways, parking, signage, utilities, and maintenance among separately owned parcels, common in shopping centers and office parks. If you buy a parcel within one, the REA controls how your parcel interacts with its neighbors and is essential to review.
How do I find the easements on a property?
Through the survey and the title commitment. An ALTA survey locates recorded and visible easements and the access points, and the title commitment lists easements and rights of way as exceptions. Reading the two together gives a clear picture of which rights benefit the property and which constrain it.
Can an easement stop me from expanding a building?
It can. An easement that burdens the property, such as a utility corridor or a neighbor’s right of way, may limit where you can build or expand. Finding it during due diligence lets you plan around it or address it before closing, rather than discovering the limit after you own the site.
This article is general information about commercial real estate closings in Virginia and West Virginia. It is not legal advice for your specific transaction, and your costs and requirements depend on your deal. Please confirm the details with me directly.