What is a Conservation Easement?

The conservation easement law puts a restriction placed on a piece of property to protect its associated resources against development.  The resource is usually open space, agricultural, historic or a forest or wetland. A conservation easement is given or donated by the owner of the property voluntarily to a qualified conservation organization, which typically is either a government agency or a land trust.  The easement varies depending on the type and use of the land.

Voluntarily Donated or Sold by the Landowner

A conservation easement benefits the property owner because by performing a deed transfer to a government agency or qualified conservation organization, the property owner is relieved of the burden of taking care of the land.  These entities are especially equipped to manage and maintain the land in a much better way than the landowner is capable of doing.

The easement is a legally binding agreement that preserves the resource so that future development will not destroy it.  A conservation easement is a powerful way to keep our millions of acres of private habitat safe and preserved. It also provides tax benefits for the property owner and allows the property owner to keep many of their property rights by allowing the property owner to keep living on the land.  The easement is drafted to make sure that the property owner’s needs are addressed.

Types of Land for Which Conservation Easements may be Desirable

Forests, wetlands and natural habitats, and agricultural lands that are located on the fringe of city or suburban development are typical types of land for which conservation easements may be desirable.

Historic Preservation Easements

Historic preservation easements protect a particular cultural or historic resource. In the case of a historic building, the easement preserves the outside appearance of the building. The National Register of Historic Places identifies and protects historic resources in the United States.

Possible Tax Consequences

If you are interested in donating your land through a conservation easement, a local real estate attorney can assist with preparation of the legal documents required to create a conservation easement for you. There are certain tax benefits that may be available to you. Your real estate attorney and/or tax advisor can explain them to you.