Frequently Asked Questions, Complete with Answers
1. What is a conservancy?
2. What are conservation values?
3. What is a conservation easement?
4. How is it different from a drain easement or a utility easement?
5. What kinds of properties are eligible for a CE?
6. Why would a landowner want to place a CE on his or her land?
7. What kind of financial advantage?
8. What activities are allowed on land protected by a CE?
9. Must all of my land be included in the CE?
10. Do I still own the land?
11. Does a CE require public access to the land?
12. Who owns the easement?
13. What effect does a CE have on a landowner’s ability to sell or pass the land to his or her heirs?
14. Does the Chippewa Watershed Conservancy accept all CE’s that it is offered?
15. How is a CE different from other types of deed restrictions?
16. Why not depend on “smart growth” zoning or other government regulations to assure that land with significant conservation values is protected?
17. How will future landowners know about the CE?
18. What are the responsibilities of the Chippewa Watershed Conservancy with respect to the CE’s that it holds?
19. What costs are incurred by the landowner in creating a CE?
20. How is the value of the CE calculated?
21. Can I donate of sell my land rather than an easement?
22. What is a Conservation Buyer?
23. What else should I consider?
2. What are conservation values? Conservation values include natural, scenic, agricultural, historic or open space characteristics that make a parcel of land important for preservation. Return to top.
4. How is it different from a drain easement or a utility easement? Drain easements and utility easements are “affirmative” easements. An affirmative easement is the right of one person to enter the property of another and “do something thereon”. Affirmative easements are what most of us are familiar with. For example, right-of-way easements to permit passage to a landlocked property or utility easements, that permit the power or water company to enter the property to construct and maintain electric or water lines, are common affirmative easements. A CE is a type of “negative” easement, because it limits the right to do something. Return to top.
6. Why would a landowner want to place a CE on his or her land? People grant CE’s because they want to protect their property from unwanted development but they also wish to retain ownership of their land. By granting a CE a landowner can assure that the property will be protected forever, regardless of who owns the land in the future. Additionally, the donation of an easement may provide significant financial advantage to the donor. Return to top.
8. What activities are allowed on land protected by a CE? The activities allowed by a CE depend on the landowner's wishes and the characteristics of the property. In some instances, no further development is allowed on the land. In other circumstances some additional development is allowed, but the amount and type of development is less than would otherwise be allowed. CE’s may be designed to cover all or only a portion of a property. Every easement is unique, tailored to a particular landowner's goals and protect the conservation values of the land. You retain the rights to do what you want on your land, subject to the terms of the easement. For example, you may lease the land for hunting or farming or exercise any other normal landowner rights as long as the conservation values protected by the CE are not negatively impacted. Return to top.
10. Do I still own the land? Yes. You can continue to live on it, sell it, mortgage it, pass it on to your heirs, etc. A CE is essentially a promise to preserve all or some portion of the open space on your property. You retain full rights to control and manage your property within the limits of the easement. You also continue to bear all costs and liabilities related to ownership and maintenance of the property. The Conservancy monitors the property to ensure compliance with the easement's terms, but it has no other management responsibilities and exercises no direct control over other activities on the land. Return to top.
12. Who owns the easement? To qualify for a tax deduction the CE must be held by the government or a qualifying conservation or historic preservation organization. The Chippewa Watershed Conservancy qualifies as a federally recognized public charity under Internal Revenue Code Section 501(C)(3). In addition, the Conservancy is qualified to receive CE’s under Michigan's Conservation and Historic Preservation Easement Act, PA 197 of 1980. Return to top.
13. What effect does a CE have on a landowner’s ability to sell or pass the land to his or her heirs? The landowner continues to own the property after executing an easement. Therefore, the owner can sell, give or lease the property, as before. However, all future owners assume ownership of the property subject to the conditions of the easement. Evidence of the easement will be clear during a title search of the property, so no future owner will be surprised by its existence. Return to top.
15. How is a CE different from other types of deed restrictions? A land owner who depends upon deed restrictions to protect property will probably be disappointed. The most serious disadvantage to deed restrictions is that no third party can be designated to assume monitoring and enforcement responsibility. The law limits who can enforce the restrictions and for how long. For example, if you insert restrictions in your deed and then sell or give the land away without retaining land nearby, your restrictions may not be enforceable by you or your successors. Return to top.
17. How will future landowners know about the CE? After the easement is signed, it is recorded with the County Register of Deeds and applies to all future owners of the land. Any future title search will show existence of the easement. Return to top.
19. What costs are incurred by the landowner in creating a CE? Because of this obligation to monitor the land in perpetuity, the Conservancy asks all easement donors to make a financial contribution to the Conservancy's Endowment Fund. This fund ensures long-term monitoring and enforcement of every easement the Conservancy receives. If a landowner does not have the financial capacity to contribute to the Endowment Fund we will seek to find other contributors. Return to top.
21. Can I donate or sell my land rather than an easement? The Conservancy is happy to receive donations of land and charitable contributions may be taken for donations of land as well as for easements. In order to take a charitable contribution, the value of the land should be established by an appraisal by a qualified appraiser. In some cases the Conservancy buys land for preserves or we may be able to assist in locating a conservation buyer for your land. Return to top.
22. What is a Conservation Buyer? A conservation buyer is a person who is interested in purchasing land with the preservation of open space, wildlife habitat or scenic views in mind. Return to top.
23. What else should I consider? See section 170(h) of the Internal Revenue Code for additional details about conservation easements and always consult your attorney or tax advisor to determine how the regulations apply to your particular situation. Return to top.
Chippewa Watershed Conservancy - P.O. Box 896 - Mt. Pleasant, MI - 48804-0896 Ph.989-644-5045 Federal Tax ID #38-381796. MICS #18767