Easements and Utility Companies

Homeowners usually have overhead power lines or in-ground sewer lines that run through their property. In such cases, it usually means the utility company has an easement over the property. 

This article outlines the rights and obligations of utility companies and property owners with respect to easements. As a homeowner or homebuyer, you may want to review the implications of an easement with a real estate attorney to understand how it may affect your property rights.

What Is a Utility Easement?

An easement gives the holder a right of way over property owned by someone else. A utility easement gives a utility company a limited legal right to use your property. But an easement doesn’t transfer ownership of the land. It usually affects what you can do with your property in some ways, but you retain ownership rights.

For example, municipalities may use part of your property or your neighbor’s property to deliver water and power. But public utility companies need property easements to be compliant with real estate law. 

How a Utility Company Can Create an Easement

Utility easements are usually created expressly by conveying a property deed, contract, or will. That means creating a utility easement requires following similar procedures to transferring other private property interests.

Accordingly, creating the easement will usually require:

• A written instrument
• Valid signatures
• Proper delivery to the property owner

A utility easement may also be created by implication. An implied utility easement exists in situations where:

• Utility poles are necessary for the operation of buildings on a parcel of land
• Utility lines run through a single piece of land (plat) that was subsequently cut up into different parcels

Utility access easements can also be created through prescriptive use. Prescriptive easements are created when a utility provider adversely, and without the permission of the owner, uses private land for a continuous period of time.

Like landscaping improvements, utility easements are usually created when a property is constructed. So, you should check for this type of easement on a property before you purchase it.

Who Owns Utility Lines on My Property?

A utility easement provides that you still own the land itself. Yet, the company typically owns shared utility features like power lines, poles, transformers, and water lines. Even if these features are on your land, you might not have the ownership rights to modify or remove them. Doing so could interfere with the utility easement. Certain features, such as the equipment that connects the house to a service line, may belong to the homeowner. But ownership can vary depending on the specific property, so it’s wise to consult a real estate attorney to clarify your rights. 

How Does a Utility Easement Affect My Property Rights?

An easement may prevent you from taking certain actions, such as:

• Digging where the utility lines have been placed
• Placing structures, such as a shed or patio, in a location that interferes with utility access
• Building fencing that prevents workers from accessing the area of land subject to the easement
• Planting large foliage like trees where they may grow over or into utility structures
• Allowing animals like pets or livestock to damage utility features

If there is an easement on your property, then you can’t interfere with it unless the easement is terminated. For instance, if there is an electric line that runs through your garage, you can’t just take it down. Instead, you must follow the legal process.

Can You Terminate the Easement on Your Property?

A utility easement may terminate in several ways, including situations in which a local utility company:

• Abandons the easement with no intention of coming back
• Buys the property
• Misuses the easement

If there is a written easement contract, it may contain an expiration date for the easement. In that way, a utility easement can also end by its own terms.

An easement not used for its intended specific purpose may be extinguished. But abuse of an easement area by the easement holder isn’t always cause for termination. Repeated abuse that interferes with an owner’s possession and property value could increase this likelihood.

What You Can Do if Someone Is Unlawfully Using Your Property

If the utility company does not have an easement and is trespassing, you can file a trespass suit. But you should ensure the utility company doesn’t have an implied easement or an easement by prescriptive use.

In certain situations, you may feel the utility company is abusing its easement rights. To protect your property ownership rights, you can file a lawsuit that asks for an injunction (stop order) or monetary damages.

Have Concerns Regarding Your Easement? An Attorney Can Help

Property rights are complicated — there are many state and local laws and regulations you need to follow. This is especially true with easements, as their creation, transfer, and termination processes are unique. If you have concerns about your easement or want to know more about your legal rights, consider speaking to a real estate attorney.