We were approached by a developer who owns the land on one side of us. For geographic reasons, they are asking to put an underground electrical wire on the tail end of our property. Of course, this means getting a utility easement. The location of it wouldn't be a bother, but have any of you dealt with getting an easement done, and how do you determine fair compensation? In talking to real estate attorneys, they seem to just do contract review, but not compensation. I would love to hear others' experience.
Easement compensation
- Thread starter mu51c10rd
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In Texas we deal with a lot of pipelines and power line right of ways! They just do what they want and you deal with it! I did fight and win to keep a major pipeline off my property a few years ago, they stayed on the big ranch across the road and the 80 acre place to my south.
Just say, Sorry I don't think that would work for me. Over time they will make you an offer. Then say, that does not seem fair, and I would rather not have it there. Remember it does lower the value of your property. It is like playing chess, you be very polite, but covertly corner them. Just saying I don't see how that adds value to your property. Eventually they will find another route or pay you well. Also, they could give you other value, upgrade or reroute your driveway, or build you a root cellar. They will have a lot of heavy construction equipment there for their project. Forget money, you have something they need, they have massive equipment that is on site. Think-think.
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We allowed some electrical line underground on the tip of our back corner of our land...an alfalfa field. The guy who needed it has the land catty corner and is land locked. BUT we said no to an easement. We said yes for it to go in underground, and gave him a paper saying that, but refused the easement, because I did not want it to be permanent. If he sells the land, and he may, it doesn't include anything else except his own land. This was about a 7 ft triangle of land.
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We allowed power lines to go through along the edge of our away property, to be nice to the guy who wanted to live year round in his cabin. We got $1, and I don’t regret doing it.
The property here came with an easement. The lines go diagonally through. Every couple of years the power company comes through to trim. More and more, they resort to chemicals. Nasty stuff. Nothing I can do about it, except maybe clear the land and maintain it so they won’t spray. I already mow over an acre and don’t want to create extra work. I like it as habitat.
Wherever poles or equipment be, you lose control of that land and they can do whatever, whenever.
Even the little telephone pole at the end of the driveway got doused with chemicals this year. I’ve had a nice flower garden around it for years. Not a weed near it, or grass. Everything died, and it even smells nasty.
Oh, and for so many feet beyond the lines the power company can control your trees. Not just trimming, but if when it is full grown it could reach above ground lines, don’t count on keeping it. I suspect that my English walnuts which suddenly died may have been messed with.
The property here came with an easement. The lines go diagonally through. Every couple of years the power company comes through to trim. More and more, they resort to chemicals. Nasty stuff. Nothing I can do about it, except maybe clear the land and maintain it so they won’t spray. I already mow over an acre and don’t want to create extra work. I like it as habitat.
Wherever poles or equipment be, you lose control of that land and they can do whatever, whenever.
Even the little telephone pole at the end of the driveway got doused with chemicals this year. I’ve had a nice flower garden around it for years. Not a weed near it, or grass. Everything died, and it even smells nasty.
Oh, and for so many feet beyond the lines the power company can control your trees. Not just trimming, but if when it is full grown it could reach above ground lines, don’t count on keeping it. I suspect that my English walnuts which suddenly died may have been messed with.
Interesting, hadn't really thought about non-monetary compensation. They intend on burying the line, so maybe there is something else we can get out of them.
You might be shocked that you lose the use of "YOUR" land some given distance from the buried line. Like you can't have a septic system or building, etc. this might not matter to you, but if your property is for sale, it may matter a whole bunch to potential buyers. Remember at some point in the future, the line could need maintained, you might need to move buildings.
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I would tell them "no, thank you". If they offer you money, they'll probably make you sign something and it will likely be very lengthy. Be very aware of anything you sign. Once they're there......they aren't going anywhere, so you are basically giving them lifetime permission to be on your property. No matter what monetary amount they offer, it still wouldn't be enough for me.....just my .02.
Sounds to me like a developer is going to develop something adjacent to your property. Probably whether you like it or not. So things will change from what they are now. Personally, I don't see too much problem with an underground utility line. Especially electrical. I would think that would need fewer "repairs" than say, a water line. If it's on a part of your property where it is of no issue to you, remembering that the developer is going to develop something on that end of your property anyway, might was well negotiate something and get compensation for it. Unless you are dead set against whatever development is coming and planning on fighting that. In that case, part of your fight plan would certainly be to deny utility lines running through your property.
So it really depends on your specific circumstance. Is that part of your property an open and unused field that you don't care much about anyway? Of is it a tree covered sanctuary that you want to preserve? How much do you support or hate this development that is coming? If they offer you something where they can do whatever they want at anytime they want and say the offer is not negotiable, then you may want to think about getting in bed with these people. However, things might be different if they are willing to negotiate - say every time they need to disturb your land for repairs they will pay an additional per-event compensation. No reason that you couldn't write something like that into a contract, I would expect.
I see no reason not to negotiate. Negotiating does not mean you have to sign on the dotted line at the end. That's still your prerogative, depending on the terms that you can negotiate.
No doubt this is true. But they will have to sign it too. So if the negotiated terms are favorable to you, this is not a bad thing.
So it really depends on your specific circumstance. Is that part of your property an open and unused field that you don't care much about anyway? Of is it a tree covered sanctuary that you want to preserve? How much do you support or hate this development that is coming? If they offer you something where they can do whatever they want at anytime they want and say the offer is not negotiable, then you may want to think about getting in bed with these people. However, things might be different if they are willing to negotiate - say every time they need to disturb your land for repairs they will pay an additional per-event compensation. No reason that you couldn't write something like that into a contract, I would expect.
I see no reason not to negotiate. Negotiating does not mean you have to sign on the dotted line at the end. That's still your prerogative, depending on the terms that you can negotiate.
No doubt this is true. But they will have to sign it too. So if the negotiated terms are favorable to you, this is not a bad thing.
If I understand the OP a private individual wants to run a buried electrical cable on your property. This private individual is a developer.
I assume developer wants an easement from you because it’s the cheapest route.
The length and width of the easement in surveyor terms would have to be in writing along with any temporary construction easements and what condition the land is to be return to after construction. What rights to maintain, repair, replace and or update? Is the easement transferable to others? Easement is exclusive to only buried electrical or can other types uses are allowable without your permission?
1. You could say “no” and there isn’t a blessed thing the developer can do other then find a different route for the electrical cable.
2. You could say “yes” to the easement for $xxx.
3. You could say you will grant a lease for x years for $xxx.
Keep in mind the developer is going to make money off of the development. Your price should reflect that.
Do NOT feel obligated or pressured to cooperate.
OP says “tail end” of the property. That leads me to believe the inconvenience to the OP will be minimum as is the length. If it was me I’d start out at $10,000.
I assume developer wants an easement from you because it’s the cheapest route.
The length and width of the easement in surveyor terms would have to be in writing along with any temporary construction easements and what condition the land is to be return to after construction. What rights to maintain, repair, replace and or update? Is the easement transferable to others? Easement is exclusive to only buried electrical or can other types uses are allowable without your permission?
1. You could say “no” and there isn’t a blessed thing the developer can do other then find a different route for the electrical cable.
2. You could say “yes” to the easement for $xxx.
3. You could say you will grant a lease for x years for $xxx.
Keep in mind the developer is going to make money off of the development. Your price should reflect that.
Do NOT feel obligated or pressured to cooperate.
OP says “tail end” of the property. That leads me to believe the inconvenience to the OP will be minimum as is the length. If it was me I’d start out at $10,000.
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Basically you are "selling" a part of your land or land rights. I wouldn't, but I like our land. The neighbor to one side of us asked to buy an acre right when we moved here. Nope. Another land locked neighbor wanted us to give him an easement for a road for a combine to travel on, on one side of our property. AND for us to pay for that road and gravel it so he can easily access the landlocked acreage he bought. Ha Ha Nope. We have 23 acres is all. I would never whittle away at it.
You can lease a use permit and increase the cost as the value of the property goes up. This way you still own the property and the rights to it. You can refuse to lease it to a new property owner. Once you grant a right of way it is there. Permanent and unyielding.
+1 on the buried power lines
. That's where they need to be.Everybody's power here is underground. When the 75mph hurricane winds blow, nothing happens. No poles to blow down
. Lightning strikes mean nothing.Yes, I know that 8' from the road in front of our house a 7,620VAC power line is 3' down there.
We mow over it and nobody even knows that it is there... except this guy that is smart enough not to dig down into it.
For the OP, if they are forced to put up tall poles and string overhead wires across your property, it is far worse
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I am not sure you can say no. You need to talk to a lawyer who has knowledge of easements.
