1. What is a conservation easement?
A conservation easement is a legal agreement that a landowner makes
with an appropriate third party to restrict the type and amount of
development on their property. Each landowner holds a bundle of rights.
The landowner may sell, give away or donate all or some of these rights.
These rights may include the right to harvest timber, extract minerals,
construct buildings, subdivide the land, or restrict access. To give
away certain rights while retaining other rights, a landowner grants an
easement to an appropriate third party, such as a qualified conservation
organization or land trust. Wood-Land-Lakes is a qualified
conservation organization.
Easements are called by different names, according to the resource they
protect. Easements used to protect utilities are known as utility
easements. Easements used to conserve agricultural land are called
conservation easements.
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2. How long does a conservation easement last?
Most easements “run with the land,” legally binding the original
owner and all future owners. Only donations of perpetual easements may
qualify for income and estate tax benefits. Some organizations may
accept term easements, which are granted for a set period time or term
of years.
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3. What kind of land can be protected by a conservation easement?
The purpose of a conservation easement is to conserve land in a
natural, scenic or open space condition. This includes land in
agriculture, forestry, wildlife habitat, wetlands, prairie and pasture.
Wood-Land-Lakes accepts a minimum of 20 acres of land. If you have less than 20
acres, please contact us and we may be able to provide you with some
alternatives.
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4. Who decides what restrictions are in a conservation easement?
The landowner and conservation organization work together to decide
what is needed to protect the land’s conservation values. The easement
is designed to be flexible. The only uses that are restricted are
written into the easement. Examples of rights compatible with
conservation goals that the landowner may retain include farming,
hunting, timber harvest and various other uses. Enforcement of the
easement restrictions becomes the permanent responsibility and legal
right of the conservation organization.
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5. Would I be giving up ownership?
No. The key feature of an easement is that the land remains in
private ownership. The landowner maintains the land and all
responsibilities associated with land ownership.
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6. Will I be able to sell my land?
Yes. Property with a conservation easement can be bought, sold, and
inherited. The conservation easement is tied to the land and binds all
present and future owners to its terms and restrictions.
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7. Can an easement be purchased?
Yes. The landowner can sell the development rights, while retaining
all other rights of ownership. Conservation organizations that purchase
these rights pay the landowner to restrict development and subdivision
of the land.
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8. How is the value of the conservation easement determined?
The value of the conservation easement is the difference between the
property’s fair market value before and after the restrictions, as
established by a qualified land appraiser.
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9. What are the costs involved with a conservation easement?
You may need an attorney, an appraiser, a surveyor and a financial
advisor. The date of the appraisal should be within 60 days of recording
the easement or the appraisal will need to be re-certified. You will need a title search and to record the conservation
easement with the county. You may be asked to make a donation for annual
monitoring and enforcement of the easement on your land.
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10. Can the conservation easement be changed or revoked?
Conservation easements qualifying under IRS regulations are designed
to be permanent and are rarely modified. A conservation easement may
only be modified if it strengthens the document and increases the
protection of the land. Both the landowner and conservation organization
must agree to the terms of the change. The only time the easement can be
significantly modified is with Court approval upon showing that the
easement’s purpose is no longer valid.
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11. What are the steps to put an easement on the land?
Wood-Land-Lakes has developed a procedure. Click here to read our Step-by-Step
procedures.
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