Protective Covenants and Conservation Easements

Protective covenants and conservation easements are two terms that get tossed around the Door County real estate world quite a bit. Living in a corner of the world that is as serene and beautiful as Door County comes with enormous responsibility for wilderness preservation. The temptation to divide land and sell for big bucks is alluring for most owners of large tracts of land. Contrary to what many think, a balance between conservation and profit does exist.

This balance occurs through conservation easements and protective covenants. Protective covenants (a.k.a. restrictive covenants or deed restrictions) restrict or limit the property rights to land by virtue of recorded documents, drafted by an attorney. These documents dictate that ownership of land cannot be transferred to another party unless any new owner agrees to the terms of the restrictions. These restrictions must specifically be recorded to “run with the land,” meaning that no subsequent owner may nullify the covenants.

Obviously, encumbering land to any degree will affect value. Protective covenants allow an owner to limit how much a property may be divided. For example, an owner may start with forty acres, develop only twenty into five acre parcels and place a covenant on the remaining twenty acres. Covenants can dictate what can or cannot be built upon a property. Covenants can even be specific enough to limit the type of construction or color a house can be. Most importantly a land owner may enact covenants without involving a third party.

Conservation easements (purchase development rights) are legal agreements placed upon a property by the landowner and governed by a qualified holder such as non-profit organizations like The Door County Land Trust or The Nature Conservancy. A conservation easement’s primary purpose is to protect a natural area for all future generations. This too will “run with the land.”

A conservation easement might protect a native species of plant or animal by placing an agreement that states how nature shall remain undisturbed on a given parcel of land. A conservation easement is an irrevocable, permanent restriction. It may be incorporated into a set of protective covenants or exist on its own. It typically restricts the type of construction or amount of building that may occur on a property.

Benefits to conservation easements include the ability for an owner to retain the property while protecting it as well as receiving property tax breaks (up to 2.3%). Source: http://www.gatheringwaters.org/For%20Land%20Owners/CE%20survey_FINAL.pdf

The important thing to remember is that, as a land owner, you can have it your way. It is your land. Outside of zoning regulations, you can do as you wish. As a steward to the land it is important to do your homework on conservation options. In addition to covenants and easements there are a number of state and federal conservation programs in existence. Use www.gatheringwaters.org as a starting point.

“How many apples fell on Newton’s head before he took the hint? Nature is always hinting at us. It hints over and over again and suddenly, we take the hint.” Robert Frost.

Kevin Nordahl is a life-long resident of Door County, a REALTORŪ and a member of the Door County MLS. He is a Past President of the Door County Board of REALTORS® and a Senior Sales Consultant at Coldwell Banker Door County Horizons in Fish Creek. He may be reached online at knordahl@doorcountyrealestate.com or by phone at (920) 493-4004.

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