Conservation Easement

As defined by The Dictionary of Real Estate Appraisal, 4th Edition, a Conservation Easement is:    

A restriction that limits the future use of a property to preservation, conservation, or wildlife habitat.

A Conservation Easement (CE) is basically two appraisal reports in one. First the property is analyzed based on its Highest and Best Use, before the CE is placed on the property. After that value, the "before" easement value is determined, a second value is determined and this is the "after"easement value.

The second value is determined based on the requirements of the Deed of Gift Easement. The property is again appraised to its Highest and Best Use, but within the guidelines of the easement. Typically, the easement document preserves the land into perpetuity. The land may not be developed or subdivided in many situations.

A CE is strictly voluntary. It requires the landowner to donate his or her property to a private charitable conservation organization or government agency. This chosen agency becomes the Grantee of the CE and they have the responsibility to enforce the easement.

By giving up the right to develop or subdivide one's land, the property owner is entitled to certain tax breaks from his or her state and the federal government.

For more information click on the following links: 

Virginia Outdoors Foundation www.virginiaoutdoorsfoundation.org 

Blue Ridge Land Conservancy www.blueridgelandconservancy.org

Land Trust Alliance www.lta.org