Steps to Making a Conservation Agreement:

Questions You Might Have Before Beginning to Consider Conserving Your Property:

How will I know if my property qualifies for a conservation easement?

PAC will help determine conservation values. PAC is an organization specifically qualified to assess the conservation values of your property. At your invitation, PAC’s Land Protection Specialist can conduct an on site visit to see how your land may be appropriate for a conservation easement.

What does it mean to donate a conservation easement? Will I still own my land?

When you donate a conservation easement to a qualifying non-profit land trust such as PAC, you are generally giving up certain development rights on the specified property. You still own the property and have all rights of ownership except for the right to do the things specified in the easement agreement.

Can I ever build on my land after I donate a conservation easement?

If you have enough land to give up some building rights to qualify for a conservation property, you may decide to reserve some rights to build in the future.

What if I just want to add on to my house or barn?

When drafting the conservation easement agreement, PAC will ask you to think of any type of renovation that might need to be done. You will be asked to estimate the maximum square footage you would ever anticipate for any type of building or renovations.

What are some typical reserved rights that easement holders retain?

PAC encourages landowners to think of everything they might intend for their property in the future. While some landowners do not wish to add anything in the future, some landowners decide to reserve such things as:

Building sites for future houses, Driveways, Barns, outbuildings, or other structures, Fencing,

Pond sites, View areas, Pasture, Trails, Gardens and other things which conform to the landowners’ intentions for his or her property.

There are some “standard” allowances that PAC recommends putting in your easement, such as the ability to add wells, septic, electrical and “green power” sources. PAC can walk you through the process of deciding what reserved rights fit your intentions for the property. Please note: If you are a landowner planning to apply for a federal tax benefit for placing your land under conservation agreement:

The more rights you retain on your property, the less possible tax benefit you can potentially enjoy. The tax benefit is awarded for the creation of natural, agricultural, historical, scientific and educational resource areas only. The IRS requires that the conservation easement be held by a qualified agency such as PAC and is defined by a qualified appraiser.

How do I find out if I qualify for a tax benefit for conserving my property?

You must work with your financial advisor to see if your particular tax position will benefit. Generally, the tax benefit amounts to the difference between what your property’s appraised “highest and best” use and its appraised value after placing the conservation agreement on the land.

Please note: You will need to have an appraisal done by a certified conservation appraiser in order to apply for a federal or North Carolina tax benefit. PAC can supply you with a list of regional certified appraisers.

Do I have to decide right away if I want to work with PAC on a conservation easement agreement?

You do not have to decide right away. The organization does not charge for its services and will help a landowner decide if conservation is right for him or her.

What is the process for deciding if I want to go forward with an easement agreement?

You may choose to follow through will any or all of these steps:

Meet with PAC to see if you like the organization’s philosophy and work ethic and to find out what’s involved in creating a conservation agreement. When you meet with PAC, it is helpful for you to bring a plat or survey of your property

Tell PAC what your general intentions are for the property: do you want to leave it the way it is, reserve some development rights, etc. (You do not have to decide the specifics at this time)
PAC will provide “Steps to Making a Conservation Agreement,” outlining responsibilities of both you and PAC
Have PAC’s Land Protection Specialist visit your property to document its conservation values. The LPS will ultimately prepare a “Baseline Documentation” of the property which will accompany the final easement .This documentation will give a baseline for future monitoring.
Once you decide to place an easement on your land, PAC recommends that you line up a certified conservation appraiser.
If you have a mortgage on your land, you will need to get a subordination agreement from your bank. PAC has appropriate forms.
Take time to work with PAC’s easement-drafter to define and refine the terms of your easement to reflect your wishes for your property.
PAC will provide you with a draft easement to review and alter as you wish. Generally, the easement document goes back and forth several times for revisions.
PAC will calculate from an objective formula a stewardship donation request. This is a tax-deductible amount requested from you for the organization’s work and legal defense of protected properties in perpetuity. Please note: It will be PAC’s duty to protect and defend the terms of your conservation agreement forever.

PAC title search—It is helpful if you have a previous title search which you can supply PAC, so that the organization can do an update.
Closing. Because the conservation easement is a legal document which will be attached to your deed, the process requires a closing. PAC will record the final documents at the courthouse, and you will receive a copy of the recorded easement.

Does a conservation easement mean that the public will be allowed on my property?

A conservation easement agreement does not automatically allow public access to a property. Only those properties specifically intended for public use, such as parks, will have public access.

Will I be able to cut dead and diseased trees on my property if I have an easement?

Most landowners wish to be able to remove dead, dying and diseased trees as they occur over time.The ability to do this should be stated in your conservation agreement, along with a plan for careful removal of such trees, and for notice to PAC.

Why should I have to let PAC know if I need to remove dead trees?

PAC is responsible for making sure that the terms you outlined in your conservation agreement remain in tact. Such things as tree removal need to be noted in your easement file so that when the property is monitored, there are no questions about what should or should not have been done to the land..