A conservation easement is initiated with the donation of a part of the “bundle of rights” that are normally accepted as part of ownership of all property. This benefaction, held by a public or private land conservation organization, creates an encumbrance or “deed restriction” on the property. The encumbrances vary, but usually fall into some category of the loss of land use through restrictions on crop choices, development rights, building and/or demolition. This then allows the easement holder to conduct inspections of the property to verify compliance to the deed restrictions on the property.
It should be noted here that the overwhelming majority of easements are initiated only when deed restrictions are agreed to in perpetuity. There are a very few that may be agreed to for set blocks of time, but any tax breaks given through the easement agreement would automatically be due if, at the end of the agreed upon time, all rights are reverted back to the land owner. There is also the possibility of other penalties associated with ending these limited agreements.
In a look back to the beginning of conservation easements Harvard researcher Zachary Bray explains that until the 1950s, conservation easements were used only sporadically and were held exclusively by governmental organizations, like the National Park Service. The recent growth in the number of private land trusts and the amount of land protected by conservation easements is primarily due to changes in the tax code.
By 1975, sixteen states had statutes enabling private acquisition and retention of conservation easements. In 1981, the Uniform Conservation Easement Act (“UCEA”) was drafted and designed to enable “private parties to enter into consensual arrangements with charitable organizations or governmental bodies to protect land and buildings without the encumbrance of certain potential common law impediments.”
Read more.