Disclosure of Easements

In Texas, sellers must disclose known easements on the Seller's Disclosure Notice. Easements are typically recorded in the county property records and will be discovered during the buyer's title search. Common easements include utility easements (electric, gas, water, sewer), drainage easements, access easements (shared driveways), and conservation easements.

If you are unsure whether an easement exists, check your title commitment or survey. The title company will identify recorded easements during the closing process. Disclose all known easements upfront. Buyers who discover an undisclosed easement after closing may have legal recourse.

Types of Easements and Their Impact

Utility easements are the most common and typically have minimal impact on value. They allow utility companies to install and maintain lines. Drainage easements ensure water flows properly and are also standard. Access easements, such as a shared driveway, can be more significant because they affect how the property is used. A shared driveway easement must be disclosed and factored into the buyer's decision.

How Easements Affect Value

Most standard utility and drainage easements do not significantly impact property value because they do not prevent the owner from using the property for its intended purpose. However, an easement that restricts building, landscaping, or other uses can reduce value. For example, a conservation easement that prevents development may reduce the property's marketability to certain buyers. An access easement across the middle of a lot may reduce usable space.

When selling, provide the buyer with a copy of all recorded easements and explain how they affect the property. A buyer may request a survey to verify the exact location of easement areas. Clear documentation and transparency about easements prevent surprises during the title review and help the transaction close smoothly.