What is a Conservation Easement?

• A conservation easement is a flexible tool that protects land while leaving it in private ownership.
• It is a legal and binding agreement between a landowner and a qualified conservation organization such as the Barrington Area Conservation Trust. Conservation easements can also be held by other qualified entities such as governmental bodies.
• The conservation easement agreement is in perpetuity, is recorded with the deed to the property, and applies to all future owners.
• Under the terms of the conservation easement agreement, the landowner agrees to restrict certain future uses of the property, and the conservation organization agrees to see that those restrictions are upheld in the future. The usual restrictions serve to:

1. protect the special natural, historic and scenic features of the property (such as woodlands, wetlands, streams, open fields, steep slopes, historic buildings and scenic views);
2. limit the number, type, and location of dwellings and other buildings on the property. Future dwelling sites are often designated depending upon the size of the property and the nature of the resources being protected;
3. prevent harmful activities such as commercial and industrial uses, quarrying and excavation, and the dumping of solid or liquid waste.

• The landowner retains title to the property and continues to have all rights of ownership except for those rights specifically restricted under the terms of the easement. The retained rights include the right to sell, lease, bequeath, and subdivide the property subject to the terms of the easement.
• The conservation easement does not necessarily permit public access to the property unless it is the specific desire of the landowner to include an accessible area or a trail easement corridor as part of the easement.

Passing The “Conservation Purposes” Test

The value of an easement may be deductible for federal income tax purposes if the easement is donated to a qualified organization and meets at least one of the following “conservation purposes”:

1. The preservation of land areas for recreation by, or the education of, the general public.
2. The protection of a relatively natural habitat of fish, wildlife, or plants, and similar ecosystems.
3. The preservation of open space, including woodland and farmland, for either the scenic enjoyment of the general public or when such preservation is pursuant to a clearly delineated governmental conservation policy. In either case, a significant public benefit must result from the preservation of such open space.
4. The preservation of an historically important land area or certified historic structure.

In addition to meeting at least one of the four conservation purposes, the IRS requires that an easement must be granted in perpetuity and be given to a qualified recipient organization. Such an organization must hold the easement solely for conservation purposes. Federal regulations also require that the holder of the easement be able to enforce the easement. The holder should inspect the easement at least once a year and be prepared to take legal action, if necessary, to uphold the terms of the easement.