How to verify an unrecorded utility easement before closing

The risk of unrecorded easements

An unrecorded utility easement means there's no official document filed with the county recorder establishing a utility company's right to access a portion of the property. This is a common issue that can complicate title. It might not show up on a standard title search.

If a utility easement exists but isn't recorded, it could affect your plans for the property, especially if you intend to build or make significant structural changes. Discovering this after closing can lead to disputes, delays, and unexpected costs.

Review the preliminary title report carefully

Your preliminary title report will list all recorded easements. This is your first line of defense. Pay close attention to any general language that might indicate potential issues, even if specific utilities aren't named.

If the report mentions 'all easements of record or apparent on the ground,' that's a signal to dig deeper. It's not a direct confirmation of an unrecorded easement, but it leaves the door open for one to exist.

A good title company will often flag anything that looks unusual or ambiguous. Work closely with him or her to understand every item listed, and ask direct questions about any potential unrecorded encumbrances.

For more on how title issues impact your deals, read /what-does-title-insurance-cover-for-investors. (Note: This is not legal advice. Consult a real estate attorney for legal matters.)

Check for physical evidence on site

During your property walk-through, look for clues. Do you see utility boxes, poles, or access paths that don't seem to align with the property's layout or known boundaries? Are there manholes or unusual markings on the ground?

Utility meters or service lines entering the property at odd angles, or even well-worn paths across a yard, can indicate an easement in use. Document anything suspicious with photos.

Walk the entire perimeter and interior. Sometimes, evidence is subtle—a power line that runs closer to a planned addition than you'd like, or a sewer cleanout cap in an unexpected spot.

Contact local utility companies directly

This is often the most direct way to uncover unrecorded easements. Call the local water, sewer, electric, gas, and telecommunications companies. Provide the property address and parcel number.

Ask if they have any service lines, infrastructure, or access rights on the property that may not be officially recorded. They might have internal records or maps that aren't public.

Be persistent; you might need to speak to a few different departments within each utility. Explain you are an investor doing due diligence for a property purchase. You are not asking for legal advice, but rather for operational information.

Review historical surveys and public records

Even if the current owner doesn't have a survey, the county recorder's office might have older surveys for the property or adjacent parcels. These can sometimes show easements that were never formally recorded against the current deed.

Look at aerial maps and GIS data for the area. Sometimes, older utility lines or infrastructure are visible in historical imagery. Compare this to the current property boundaries.

While public records are primarily for recorded documents, sometimes permits for utility work or prior property transactions might mention unrecorded agreements. It's a long shot, but worth checking.

Get an updated survey with utility markings

The most definitive way to confirm unrecorded easements is to order a new survey that explicitly requests the surveyor to locate and mark all visible utilities and any known or suspected easements.

A good surveyor will often contact utility companies themselves and physically mark lines on the property. This provides a clear visual and documented record. It’s an added cost, but it's a necessary one if you have any doubts.

If an unrecorded easement is found, you can then assess its impact on your investment. You might need to renegotiate your offer, adjust your rehab plans, or even walk away from the deal if the risk is too high.