When exploring land ownership opportunities, you might encounter the term “landlocked property.” These unique parcels lack direct access to public roads or rights-of-way, meaning you can only reach them by crossing neighboring private properties. While this can create challenges, landlocked properties often come with lower price tags, presenting a unique investment opportunity for those willing to navigate their complexities.
What is a Landlocked Property?
A landlocked property is one without public access points, effectively "locked" behind other privately owned lands. While these parcels may seem less desirable, they can be budget-friendly options for buyers looking to invest in land. Because they’re harder to access, they often remain on the market longer and are priced more affordably than comparable properties with direct access.
Landlocked properties aren’t necessarily off-limits for buyers; however, understanding the legal and logistical considerations is key to making a smart purchase.
Accessing Landlocked Property: Easements and Agreements
To utilize landlocked property, you need legal access. This is where easements come into play. Easements grant you the right to cross a neighboring property to reach your own.
- Right of Way Easements: Allow you to use an established path, like a driveway or access road, on a neighboring property.
- Easement by Necessity: Typically granted when the landlocked property and the neighboring property were once part of the same parcel but were divided, leaving one piece without access.
Always ensure any easement agreements are in writing, legally recorded, and drafted by a real estate attorney. This protects you from disputes and ensures future owners retain the same rights.
Pros and Cons of Landlocked Properties
Pros:
- Affordability: Landlocked parcels are often cheaper than similar properties with direct access.
- Unique Opportunities: These properties may be the only way to acquire land in highly desirable locations.
Cons:
- Access Challenges: Negotiating easements or dealing with uncooperative neighbors can be time-consuming and costly.
- Limited Financing Options: Some banks are hesitant to finance landlocked properties.
- Resale and Appreciation Risks: Limited access may deter buyers and reduce long-term value.
Final Thoughts
Landlocked properties may require extra effort, but they’re not without potential. With thorough research, legal protections, and possibly a little neighborly diplomacy, these parcels can offer excellent value.
Rely on AcreValue to support your journey by providing the data and insights you need to navigate the complexities of landlocked properties with confidence.