Quick Guide: What is a Landlocked Property?

When shopping around for land, you may encounter properties referred to as landlocked. These properties have unique challenges which make buying, owning, and selling them a bit more complicated than usual. Like all land ownership, landlocked properties present an opportunity for investment, as long as you’re willing to put in a little additional effort.

Contents

What is a Landlocked Property

Accessing Landlocked Property

Pros and Cons of Owning a Landlocked Property

What is Landlocked Property?

Landlocked property is only accessible by passing through other privately owned properties. It has no public access points, effectively “locking” it behind other properties. Though it might seem counterintuitive to purchase landlocked property, it can actually prove to be an affordable option. Landlocked properties are usually cheaper and tend to remain on the market longer, and though many people consider such properties to be less desirable, a landlocked property could be a bargain in waiting for the right buyer.

Getting access to these properties can be as simple as a deal between yourself and a friendly neighbor, but there are some challenges to consider.

Accessing Landlocked Property: Easements and Agreements

When buying and selling landlocked property, it’s essential that you consider points of access. All property owners have a right to enter and exit their property, called rights of ingress and egress. Doing so with a landlocked property presents a challenge, however; if the property doesn’t have an access point, such as a road, you’ll need to consider something called an easement.

Easements can grant you the right to cross through other property in order to access the landlocked parcel. Laws on the state and federal level protect a property owner’s right to “productive use,” which means the property must be accessible somehow in order for the owner to get something out of it.

Sometimes this means a right of way easement, which allows you the legal right to use your neighbor’s driveway or access road to reach your own landlocked property. However, a right of way easement doesn’t allow you to build your own road on that neighbor’s land — it simply allows you to travel through their property to your own.

Easement by necessity can circumvent the need to involve your neighbors, but it has a key stipulation: you must be able to prove that both your land and the land you’re trying to use as a point of access must have been owned at one time by the same person — something called “severance of unity” in legal terms.

The fault of no access is then attributed to the severance of unity and your easement by necessity can be approved. Acquiring an easement by necessity can be a lengthy and costly legal process, running the risk of alienating your neighbors, and as such should be conducted with the assistance of a real estate attorney.

No matter which type you get, written easements are essential; don’t do handshake deals or verbal agreements. Get the easement in writing and have a real estate lawyer draft it in order to iron out any wrinkles. The easement will then be registered with a deed office, which secures it into a legal agreement and prevents potential headaches in the future.

Pros and Cons of Buying and Owning Landlocked Property

When it comes time to buy and you’re considering a piece of landlocked property, there are a few key details you’ll want to keep in mind. Some of these details are beneficial to you, the purchaser:

• Landlocked property is usually cheaper than other, similar properties that aren’t landlocked. This means that you can find great deals on desirable plots of land, with the caveat that you’ll have to find a way to access that land down the line if an easement does not already exist.
• Landlocked plots are sometimes the only way to gain access to a very desirable piece of land. It might be waterfront property or located in a unique geographical region, such as a scenic mountain or sprawling woodland.
• Should you decide to sell a piece of landlocked property, keep in mind that you must disclose the lack of access as part of that sale.

On the other hand, landlocked plots have some drawbacks:

• Some financial institutions won’t finance the purchase of a landlocked plot. This varies between institutions and states, so be sure to check around for a second opinion.
• The difficulty in accessing a landlocked plot can be a challenge for first responders in the event of a natural disaster or medical emergency. This increased risk is part of the reason why it can be difficult to get financing for the purchase of such properties.
• Landlocked plots may not appreciate as much as other properties. Consider how long you plan to own the land and try to plan accordingly.

Final Thoughts

Landlocked property presents an array of challenges for prospective buyers and current owners to consider, but the process of accessing your land doesn’t have to be a dealbreaker. Talk to neighboring landowners and seek out amiable solutions, such as sharing a driveway or access road.

Consider employing the work of experts, such as real estate lawyers, to help you clear up any confusion when dealing with a landlocked purchase or access. As always, be diligent and do your research before buying land with acres.com.