Ch-2-MCQ Quiz

Study Notes

Easement Types and Insurability

Easements are rights to use another's land for a specific purpose.
Appurtenant easements benefit a specific property (dominant estate). They run with the land, meaning the easement transfers with the property even if not explicitly mentioned in future deeds. These are typically insurable.
Easements in gross are personal rights, not tied to a specific property. Examples include utility, solar, cell tower, hunting, and grazing easements. Most easements in gross are not insurable, but some (like those granted to governmental entities) might be.

Pertinant Easements

Pertinant easements are those that benefit the property being insured.
Granting language is crucial; it should specify the easement benefits the property and its occupants (e.g., successors and assigns).
The easement must be perpetual and run with the land to be pertinent and insurable.
A pertinent easement will transfer with the property even if not referenced in subsequent deeds.
The easement must be properly documented (legally described, witnessed, and acknowledged).

Insuring Easements

Two separate property searches are necessary: the insured property and the servient tract (property subject to the easement).
All owners/mortgage holders with interest in the servient tract must agree (or have their interests noted as excepted) for the easement to be insured.
Confirming the grantor's authority is critical. A person or entity must have the proper authority to grant the easement.
Easement policies typically don't insure only the easement. It's usually tied to the property it benefits.
Clear legal descriptions are essential to avoid ambiguity and potential future disputes.
If an easement is blocked, a proper survey is needed to acknowledge any previously undiscovered and impacted matters.

Negative Easements

Negative easements restrict the use of a property.
Conservation easements restrict development.
Sight easements prevent obstructing views.
Avigation easements restrict building near airports from interference with airspace use.

Easements in Declarations of Covenants

Easements in declarations of covenants (e.g., shopping centers) require careful evaluation on a case-by-case basis.
The AFP 103 Corp. v. Commonwealth Trust Services court case invalidated certain easements in a declaration. This created uncertainty, and Fidelity now underwrites these kinds of easements cautiously.
Recent legislation may change how such easements are insured; this will revert to the status quo prior to the mentioned case. Easements created affecting property wholly owned by the granting entity are valid under the new law.

Important Considerations

Property Obstructions: Obstructions on easement tracts must be carefully evaluated (e.g., fences, walls) as they can impact insurability.
Improper Easement Execution: Improperly executed easements are not insurable for the same reason as a questionable deed or mortgage document.
Surveys: A survey is necessary to properly document an easement, especially if it has been blocked. The survey exception should be maintained if issues with the easement tract are present; but if no issues, delete it from the fee tract. The easement tract is the key.

Description

Test your knowledge on easement types and their insurability. This quiz covers appurtenant easements, easements in gross, and pertinent easements. Understand the conditions that affect the insurability of different easements and their implications for property ownership.