How is the value of the development rights in a Conservation Easement determined?
The change in property value associated with a Conservation Easement must be determined by a qualified real estate appraiser. The value of the Easement is the difference between the value of the land without the Easement restrictions and the value of the land after the restrictions have been applied and the development rights have been removed. For an Easement donation that qualifies under Internal Revenue Service regulations, this amount is generally the value of the charitable donation. For an Easement sale, this also is the method for determining the payment to be made. Example: The Smith family conveys a perpetual Conservation Easement on its 80 acre farm to the North Florida Land Trust. If the property’s current value is $3,000 an acre, its total fair market value-before the Easement is in place-would be: 80 acres x $3,000/acre = $240,000. If removing the development rights lowers the value to $1,000 an acre, the then total market value of the restricted property would be: 80 acre
Related Questions
- Can a private landowner donate a conservation easement to convey away the propertys development rights but still continue to use the property as before the easement was granted?
- How is the value of the agricultural land conservation easement determined, and by whom?
- How is the value of the development rights in a Conservation Easement determined?
