A conservation easement is based upon the separability of land ownership rights from future development rights although the property owner may continue limited use and enjoyment of the land much as if before the conveyance.

Conservation easements are becoming more popular as a provision for not only protecting the environment but for [1] providing the land owner certain tax advantages, and [2] increasing the value of adjoining lands by the enhancement of privacy/protection buffer and increased amenity.  The homeowner as well as the community enjoy the benefits of the permanently protected land although the land does remain on the tax rolls.

As defined by federal law, conservation purposes include:

• The preservation of land areas for outdoor recreation by or for the education of the general public.

• Protection of a natural habitat for wildlife, plants, fish, or similar ecosystems.

• Preservation of open space (can include farm land or forest land) where such preservation is for the scenic enjoyment of the public or pursuant to federal, state, or local government conservation policy which, in either case, will provide some public benefit.

• Preservation of a historically significant land area or certified historic structure.

Three ownership categories exist for open space easements: [1] private open space adjacent to homes owned by individual homeowners, [2] public open space owned by the government, and [3] common open space owned by a community association and held for the utility of the residents.

ADVANTAGE OF CONSERVATION EASEMENTS

• Satisfaction of sustaining the natural characteristics of the land

• The owner and his/her heirs may be eligible for certain tax advantages to include:

  • a deduction for federal income tax purposes as a charitable gift,

  • possible gift tax advantages when a landowner intends to grant all or a portion of the land to a child or other individual, 

  • estate and inheritance advantages by reducing the tax liability to the heirs by the lowering of taxable assets, 

  • possible property tax advantages through the reduction in assessed value and correspondingly, reduce the tax burden. 

The grantee of a conservation easement may not exercise development rights given up by the grantor.  He/she in essence, becomes a guardian of the property and maintains a long term responsibility to monitor uses of the land to insure compliance with the original terms of the conservation easement. The grantee also retains the legal right and obligation to enforce the restrictions.

RESPONSIBILITIES OF THE GRANTEE

The conservation group (usually a government body) accepting the donation is responsible for; [1]  recording the easement, [2] supervising uses of the land to ensure restriction compliance, and [3] enforcement if violations occur. Most grantees request a cash donation with a conservation easement to cover the cost of monitoring and enforcing the easement.