Do conservation easements have an impact on the fair market value of a property?
A. Conservation easements may or may not impact the fair market value of individual properties. Conservation easement agreements specifically define the restrictions or limitation that will be attached to the property. Consequently, each agreement must be analyzed separately to determine (1) the extent of the use restriction and (2) whether the market place would provide for a loss in value if the property were sold in an arm’s-length transaction. Easements with limits that are less restrictive than the property’s existing use probably will not result in any measurable lost value.
