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Posted: Tuesday, September 24, 2024
Author: Vinny Delgado, Partner, Ranch Sales | Licensed in MT
Dear Vinny,
I am looking at a property to buy that has a conservation easement on it. The property I am looking at is primarily for recreation and lifestyle. It’s not currently being run as an operating cattle ranch or business. I’m wondering what individuals like me do with the credits from conservation easements. What options are available if you aren’t running a big business with income coming in?
Dear Easement,
If the property is already under an easement, unfortunately, you won’t be able to receive any credits, as the original owner has already claimed them. Depending on the easement's restrictions, you may explore additional encumbrances for potential credits, but this will depend on the specific limitations outlined in the easement documents. Typically, conservation easements involve relinquishing development rights, which are likely already restricted. It's advisable to thoroughly review the easement and consult with a knowledgeable real estate attorney for guidance.
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