If you’re uncertain about the meaning of Easements and Encumbrances, it’s crucial to understand them before beginning any property transaction. They’re not the same thing, and they can significantly impact your goals.
Easements
Easements grant certain parties the right to enter your property for specific reasons. For instance, Council or SA Water may require access to sewerage or drainage points. SA Power Networks may also need access to work on their infrastructure, which might not be registered on the Title as an Easement but is mentioned in government searches included with the Form 1. Additionally, your neighbour might require access to their property through a designated section of your land, known as a right of way.
However, most other Easements affect only specific portions of the property, as outlined on the Title. If you fail to obtain permission from the relevant authority to build on an Easement, your works may be removed or damaged if access to infrastructure on your property is necessary.
Encumbrances
Encumbrances impose restrictions on what landowners can do with their property. They often affect a group of properties created by a developer. Examples include restrictions on leaving a block vacant, limitations on building materials, parking regulations, and rules regarding items visible to the public, such as washing hanging on balconies or satellite dishes.
Some Encumbrances are registered on the Title by the first Purchaser and remain for subsequent transfers. Others must be removed from the Title with each settlement and then re-entered by the next Purchaser. Developers may prefer each Purchaser to enter into a new Encumbrance to ensure awareness of terms and conditions.
Certain Encumbrances aim to maintain the uniformity of properties in the area and to keep property values steady. Understanding Encumbrances is crucial, as they vary in terms and conditions.
More on Easements and Encumbrances
Easements and Encumbrances are registered on the Title, so it’s wise to request a copy when considering a property purchase to research any applicable conditions.
If you need further information about easements or encumbrances, feel free to contact us. Additionally, you can find extra information on Easements and land restrictions here.