Easement for Professional Practice and Infrastructure.pptx

Cost estimation

1. Valuation Easement

2. Q 1 The easement are the restrictions on the use or utility of a particular property. They are to be carefully examined while valuing the immovable property. These easement may be either self imposed or legally created. Instances of self-imposed easements: The members of a family while dividing the property among themselves my agree that no member can sell out his/her portion without the consent of the other members. A housing society may make a resolution stating that its members shall be of a particular caste or community. The legal easements are controlled by the provisions of the Indian Easements Act, 1882. The instances are: Right to common passage Right to lay pipelines or ducts Right to light and ventilation Right to project in the premises of abutting or adjoining property for disposal for rainwater Easement

3. Q 1 An easement can be created or acquired either by owner or a person in possession on his behalf or by a co-owner, if any, for the beneficial enjoyment of the property Different methods of creating an easement By Grant: An easement granted by a deed is governed the conditions e.g. a right of light and ventilation through a certain specified space or a right of footway only through a defined boundary. This is called an express grant of easement. (2) By necessity: When a property is divided into several parts, an easement becomes essential to enjoy the parts so formed. When the easement is absolutely essential, its called easement of necessity. (3) By quasi-necessity: The term quasi-necessity used to indicate a qualified necessity i.e. without which the property is not enjoyable in the same way as it was before the division of the property. Creation of Easement

4. Q 1 An easement can be created or acquired either by owner or a person in possession on his behalf or by a co-owner, if any, for the beneficial enjoyment of the property Different methods of creating an easement (4) By prescription: This is the most usual way of creating an easement. When the right of an easement is enjoyed over a property by a person for a period of 20 years or more, an easement is imposed on the property. If property involved belongs to the government, the prescriptive period is 60 years. (5) By lost grant presumed from immemorial user: When the easement is enjoyed from immemorial time and there is no proof of grant obtained to have such an easement, it is presumed that the easement exists unless there is a proof to show that it was impossible to make such a grant (4) By custom: By virtue of a local custom, an easement may be acquired. Such easements are known as the customary easements this is means are of local birth and they can be enjoyed only in a particular locality. It is also necessary that a customary easement should be reasonable and it should comply with the conditions of the custom. Creation of Easement

5. Q 1 An easement can be created or acquired either by owner or a person in possession on his behalf or by a co-owner, if any, for the beneficial enjoyment of the property Different methods of creating an easement (7) By transfer of dominant heritage: When the dominant heritage is transferred by act of parties or by operation of law, the person getting such heritage automatically acquires the easement. This is due to the fact that the easement moves with the property and not with the person. (8) By legislation: This is the most usual way of creating an easement. When the right of an easement is enjoyed over a property by a person for a period of 20 years or more, an easement is imposed on the property. (9) By the operation of the doctrine of acquiescence: Sometimes, the servient owner, by his active encouragement, passive acquiescence or other conduct, induces the dominant owner to believe that he may acquire an easement over servient heritage by giving some money or doing some act. This is known as the doctrine of acquiescence . Creation of Easement

6. Q 1 The easement can be extinguished or released or wiped out or destroyed in many ways as follows: By dissolution of right of servient owner By release By revocation By expiration of period By happening of event By end of necessity By easement becoming useless By permanent change in dominant heritage By permanent change in servient heritage due to superior force By destruction of either heritage By unity of ownership By total non-enjoyment Extinguishment of Easement

7. Q 1 An easement is an acquired right and it is taken out from the ownership of one man and added to the ownership of another man. Such is not the case with natural right which are secured to the owner of land. Such is not the case with natural rights which are secured to the owner of land by the common law of land. The examples of natural rights are: Every owner of a plot at high level has right to drain rain water from higher plot to lower plot. But the right to discharge polluted water in the neighboring plot is not a natural right. Right to support of adjacent land: If the owner of the land digs a pit and fills it with water, it will interfere with the support of adjoining land. Every owner of land has right to receive the natural light which falls vertically upon the land, but not the light through adjacent plot. The formation of unreasonable noises, vibrations etc. which would cause physical discomfort to the neighbors are not treated as the natural rights. The owner cannot develop his land in the manner as he likes. But he has to respect and comply with the prevailing rules and regulations of the local bodies. Easement and natural rights

8. Q 1 It will depend on the degree of obligation thrown on the property to be valued. The higher the obligation, the higher will be the reduction factor from the value arrived on the basis of non-existence of the easement and vice versa. The appendage of an easement to a property reduces the attraction to that property to a certain extent and hence the degree of competition for purchase also diminishes as compared to that of a property without easement. The valuer has to carefully examine the nature of easement attached to the property for which he is determining the fair market value. Effect on valuation due to easement

9. Example A freehold square open plot with one side is 30 m is situated at the junction of two 10 m wide roads. The land is situated in commanding position. But at one of the corner point on roadside it contains a well. The owners of seven adjoining properties have easement right in the form of drawing water from the well the estimated rate of open land in the locality may be taken as two vary from rupees 500 to 600 per m 2 . Work out the value of the property. Solution The land under consideration is situated in the commanding position and as such, it is work at rupees 600 per m 2 . However, the presence of an easement on the property will considerably affect the market value of the property. Any prudent purchaser would think that he has either to tolerate the easement rights of the owners of seven adjoining properties or he has to spend considerable amount for extinguishing the said easement rights. Under the circumstances, the rate of land for the property under consideration may be taken as, say 50%, of to fair prevailing rate i.e. Rs 300 per m 2 . Area of land = 30 X 30 = 900 m 2 . Value of the property = (300 x 900) = Rs. 270000/-

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