REV Birmingham

An easement is a legal interest conveyed by a property owner to a qualified preservation organization or government agency. 

It is a legal agreement between a property owner and a preservation organization, allowing the organization to own historic elements of a property for their long-term protection and monitor and protect the architectural and historical character of the property.

By granting an easement, the owner agrees to preserve specific areas of the property and seek permission before making any changes to them. Easements are designed to remain in place over time, continuing with the property when ownership changes. 

Easements are a great way to ensure the long-term preservation of historic buildings. They are customized to suit the unique features of each property and may cover both interior and exterior aspects, as well as specific building features or their surroundings. Every property is different, and so are the easements created for them! 

Any historic building can potentially be the subject of a historic preservation easement, though current tax laws offer charitable deductions for easement donations only for properties listed on the National Register of Historic Places (either individually or as part of a historic district).

In some cases, the recipient organization may choose not to accept an easement if the building’s physical integrity has been significantly compromised or if there are serious maintenance concerns. 

• The property will be protected for future generations.  
• The value of the easement may be considered a charitable contribution. 
• Potential reduction in real estate taxes*.*Please note that REV Birmingham is not qualified to provide tax advice. We recommend consulting with an accountant or financial professional for any tax-related questions. 
• Attracting equity for development projects from investors that specialize in historic preservation easements.  

While there are some costs associated with donating an easement, they are generally minimal compared to the benefits. Donors may need to cover costs for appraisals, attorney, and accountant fees.

The recipient organization typically charges an application fee and a donation fee to help cover the cost of monitoring the easement in the long term, which includes annual inspections. 

Owners are responsible for maintaining their property to a high standard and consulting with the recipient organization before making any alterations or additions. Owners, as well as any future property owners, will be asked to protect the property from demolition, avoid subdividing the property in certain cases and seek approval before making significant changes. 

The easement recipient conducts regular inspections of the property and provides written reports with recommendations for ongoing maintenance, repair, and preservation practices. They are also available for consultation at any time, beyond the annual inspections. The easement recipient takes responsibility for ensuring the easement is followed and works with property owners to maintain the property’s historic value.