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Aaron the House

Real Estate Investing Problems Solved!


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My First Easement

Seller wants an easement so the neighbor can get to his backyard

This was one of those interesting deals I love to get involved in. The seller wanted to unload his house, but was concerned about the neighbor not having anywhere to park his car. The neighbor had enclosed his garage and even though he still has a driveway on his front lawn, it ends at a wall with a window. He's been using the neighbor's driveway and parking behind his own house on a slab he poured in his back yard.

The seller said he wanted $110,000. I made an offer of $101,000. He countered at $105,000. I countered back and got an acceptance at $102,500, then he dropped the easement bomb on me. I was already planning on getting out the concrete saw and putting up a fence to block the access. Once I had this new development to deal with, I decided this property was headed to the wholesale pile.

I sent it out to my current list of cash buyers and got an offer of $126K - not a bad fee for me. I thought everything would go smoothly now that I had a buyer lined up, but then the buyer said he wanted the easement to be pass thru only and that it should only run with the neighbor while that neighbor still maintained an interest in the property. This didn't really throw a wrench into the mix, more like a speed bump, but still something that needed to be dealt with.

I contacted title and escrow and both said it was something they don't provide. Title doesn't insure it and escrow won't write it up. Not the first time I had to create a document and I actually prefer to write my own. That way, I get exactly what I want and this would be no exception. Title was nice enough to send me over some boilerplate language and here is what I came up with;

An exclusive Easement for the property described as follows; extending 81’ along the south property line heading in a westerly direction from H St ending at the metal pole and extending 8’ from the south property line in a northernly direction for ingress egress on over and through said land. Said Easement is exclusive to (neighbor's full name) and will terminate when (neighbor's full name) no longer has an interest in the land described as follows (neighbor's full address).

I sent it over to escrow and the deal closed a few days later. The check was certainly nice, but being involved in this transaction was even more fun. I love these kinds of deals.