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Easement vs LLA ?

Posted: Fri Oct 08, 2010 12:12 pm
by Propst
I have a client who called me to prepare a LLA.
His spacious lot is at the top of a slope and his yard area appears (I haven't surveyed it yet) to encroach onto his neighbor about 6-feet. The neighbor downslope is agreeable to the LLA, and there are no setback issues.
A title officer mentioned the possibility of just doing an easement, and it seems like a much more cost effective solution, saving several thousand dollars in fees from the city, title companies, attorneys, and myself. I just havent seen this done and was wondering what I might be missing as far as potential drawbacks, or legal ramifications.

Posted: Fri Oct 08, 2010 12:20 pm
by E_Page
The other landowner, his lender, or his title insurer may object to an encumbrance placed upon the property. Money to affect an LLA aside, it is a much cleaner solution with respect to title.

Taxes

Posted: Fri Oct 08, 2010 1:22 pm
by JasonCamit
Also there would be a tax issue to be considered. If the grant of an easement deprives the grantor of practically all of his or her beneficial interest in said land, the grant is deemed to be a taxable sale of land.