What Is Landlocked?
Let me explain what landlocked means in real estate. It's a piece of property that you can't reach via a public road unless you go through an adjacent lot. For instance, think of a vacant lot behind a strip mall that you can only access by walking through the mall—that's landlocked. Essentially, the property is surrounded by others, locking it in without direct public access.
Key Takeaways
To break it down simply, landlocked property in real estate is inaccessible without crossing neighboring land. It's surrounded by other properties and only reachable through them. These parcels often come from subdividing larger lots into smaller ones sold separately. As an owner, you can secure an easement to cross over to a public road.
Understanding Landlocked
Landlocked parcels usually result from subdividing a larger piece of land into smaller ones that get sold off. Ideally, each smaller parcel should have its own access to a public road, but that's not always feasible. For example, if you're subdividing a square parcel with a central mountain unsuitable for building, you might leave that part landlocked rather than creating an awkward access route.
This can also happen with family-owned land divided among heirs over generations. When everything was in the family, access wasn't a problem, but once properties are sold to outsiders, getting to the landlocked part becomes an issue.
Advantages and Disadvantages of Landlocked Real Estate
Landlocked property generally sells for less than surrounding lots because of the access issues, but that doesn't make it worthless. In pricey neighborhoods, it could be a smart buy, letting you into an area you'd otherwise afford. However, getting a loan or mortgage is tough—banks often refuse to finance landlocked parcels due to concerns about emergency services like fire or medical access, which can scare off buyers too.
Easement
Owning landlocked property means dealing with access challenges, but laws at state and federal levels ensure you can use your land productively, which includes getting to a public road. An easement gives you the right to cross neighboring land for that purpose. There are different types, and if you're savvy about the rules, landlocked property can be a solid investment.
The easiest way is negotiating with your neighbor for an easement. They might agree verbally, but I advise getting it in writing from a real estate lawyer and registering it with the deed office. A verbal deal could fall apart if the neighbor changes their mind or sells to someone unfriendly, and it won't help when you resell. A written, permanent easement secures everything.
Easement by Necessity
If negotiation fails or they demand too much, you might need an easement by necessity, which is a court order granting access. To get it, prove through deeds and title searches that your landlocked property and the neighbor's were once owned by the same person, and the subdivision overlooked access. Note that this involves legal fees and could upset the neighbor, who might appeal. Exceptions exist, like old federal land patents. To steer clear of court fights, consult a real estate attorney before buying.
Can You Deny Access to Landlocked Property?
No, you cannot deny access to landlocked property. Laws ensure access is possible, even without a direct route, typically through easements or necessity orders.
Why Should I Invest in a Landlocked Property?
There are good reasons to consider investing in landlocked property. Its lower price can get you into an expensive neighborhood you couldn't otherwise afford. If it's near a growing business area, hold onto it and sell later for a profit when expansion increases demand.
What Is Severance of Unity?
Severance of unity is key when seeking an easement by necessity. It proves the original owner subdivided the land and transferred part to you, creating the landlocked situation.
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