Underwriting

How to Handle Unrecorded Easements Before Closing on a Property

Unrecorded easements can appear as a surprise during due diligence, potentially affecting your property's use and value. Before closing, it is crucial to identify and understand the implications of any such easements.

October 11, 2026 · 3 min read

What is an unrecorded easement?

An unrecorded easement is a right for someone else to use a portion of your property for a specific purpose, but it is not formally documented in public records. This could be an old path a neighbor uses, or utility access that was never properly filed.

These can be implied or prescriptive, meaning they arose from long-term use or circumstances, rather than a written agreement. They can significantly impact your planned use of the property.

How do unrecorded easements come to light?

Unrecorded easements often surface during a thorough property survey, which might show utility lines or physical evidence of regular access across the property that is not on the title report.

Sometimes a savvy title company or attorney will spot potential issues, or neighbors might volunteer information about historical usage. This is not legal advice. Consult a professional for specific advice.

Assessing the impact on your investment

First, determine the scope and nature of the easement. Does it affect a crucial part of the property you planned to build on? Does it grant access to someone who could cause issues?

An unrecorded easement could reduce the property's usable land, create access issues, or even lower its market value, especially for development purposes. You need to understand the practical impact.

Your options for dealing with an unrecorded easement

You have a few options: you can try to formalize it with a written agreement, negotiate with the benefiting party to extinguish it (often for compensation), or if it is minor, choose to live with it.

In some cases, especially if it significantly impacts the property's value or your plans, you might renegotiate your offer with the seller or even walk away from the deal. This is not legal advice. Consult a professional for specific advice.

Protecting yourself before closing

Ensure your purchase agreement includes a contingency for a satisfactory survey and title review. This allows you to address any surprises like unrecorded easements before you are committed.

Obtain an owner's title insurance policy that specifically covers potential issues arising from unrecorded easements. This is an added layer of protection for your investment. This is not legal advice. Consult a professional for specific advice.

When to renegotiate or walk away

If the unrecorded easement creates an unmanageable burden, significantly lowers the property's value, or prevents your intended use, it is time to renegotiate your offer. The property's true value has changed.

If negotiations fail or the issue is too complex or costly to resolve, walking away from the deal might be the smartest financial decision. Do not let emotions push you into a bad investment.

Questions people ask

Can an unrecorded easement be removed?

Yes, sometimes it can be removed or extinguished, but this usually requires negotiation with the party benefiting from the easement, and sometimes legal action, which can be costly and time-consuming.

Will title insurance cover unrecorded easements?

An owner's title insurance policy can provide coverage for certain types of unrecorded easements, but you should review the specific policy terms with your title company to understand what is covered and what is not. This is not legal advice.

How common are unrecorded easements?

They are more common than many investors realize, especially in older neighborhoods or rural areas where property lines and usage historically were less formally documented.