Does an easement lower a property's value?

It can, especially if it limits where you can build or reduces usable yard space. Many easements, such as routine utility ones, have little practical effect on day-to-day living or value.

Can I remove an easement from my property?

Sometimes, but it usually requires the agreement of the party that benefits from it, and may need legal steps to discharge it from title. Utility and municipal easements are rarely removed.

Will my lender care about an easement?

Lenders review title for anything that affects value or marketability. Most standard easements are acceptable, but unusual ones that limit use significantly may prompt questions during financing.

Mortgage Glossary

What is Easement?

An easement is a legal right that allows a person or entity, other than the owner, to use part of a property for a specific purpose. Common examples include a utility company's right to run pipes or wires across a yard, or a neighbour's right to cross a shared driveway. An easement runs with the title, so it stays in place even when the property is sold.

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Quick answer

Also known as: right-of-way, right of way

Key points

An easement gives someone the right to use part of your land without owning it.
It runs with the title and binds all future owners of the property.
Common types include utility easements and shared-access rights-of-way.
You generally cannot build permanent structures over a registered easement.
Easements show up in a title search and are confirmed by a survey.

Easement explained

An easement grants limited use of someone else's land without transferring ownership of it. The property burdened by the easement is the one giving up some use, while the party benefiting gains a defined right, such as access, drainage, or the ability to maintain infrastructure. Because easements are registered against the title, they bind every future owner of the land.

In Canada, easements typically appear on a parcel register or title search and are confirmed by a survey. They can be granted to utilities, municipalities, or private neighbours, and they may permit anything from a buried gas line to a shared laneway. An easement does not give the holder ownership; it only allows the specific use described.

What a Easement is for

Easements exist to let essential services and reasonable access function across property boundaries without forcing owners to sell land. They allow utilities to maintain power, water, and sewer lines, give landlocked properties a legal route to a public road, and formalize shared features like driveways so disputes are avoided.

How it can help you

Knowing about an easement before you buy helps you understand exactly what you can and cannot build on, since you usually cannot erect permanent structures over a registered right-of-way. Reviewing easements during your home search protects you from surprises that affect value or future renovations. Lenderoo shops 40+ lenders for free, so once your title and easements are clear, you can line up financing with confidence.

When it comes up

An easement often surfaces during a title search when a buyer plans to add a garage or pool. If a hydro easement crosses the back third of the lot, the buyer learns those improvements are not permitted there and can adjust plans or negotiate before closing.

Example: a utility easement on a lot

You are buying a home on a 50-foot by 120-foot lot. The title search reveals a 10-foot-wide utility easement running along the rear property line, covering about 500 square feet, where the city maintains a buried sewer main.

That strip stays yours to mow and landscape, but you cannot build a structure on it. When you later plan a 400-square-foot detached studio, you must shift it forward of the easement, reducing your usable backyard but keeping the build legal.