12 Musts for an Out of Home Easement

An out of home easement gives a billboard company the right to (1) construct, maintain and access a billboard on land it does not own (2) access a billboard on land across land that someone else owns.  Most of the easement agreements which Insider sees are perpetual in exchange for a one-time cash payment.  Out of home companies purchase a permanent easement to avoid lease renewal risk.  Here are 12 things to include in your out of home easement agreement.

A description of the property.  A full legal description is best.  When this is not available an address should be used.

Depiction of the easement area.  Be as specific as possible as to where on the property the easement is and how big it is.  The easement should be drawn in on a property map and described in detail.  For expensive signs and sophisticated landlords you should draw the map to scale.

A term.  The easement should make clear whether it is perpetual or for a limited term.  Most easements Insider sees are perpetual.

Consideration.  The easement should specify what consideration is and how it is paid.

A covenant not to disturb. The easement must have language which allows you

  • access to the billboard
  • the right to install, repair and service the billboard
  • the right of view which prohibits the landlord from building structures or planting vegetation which obstruct the view of the billboard.

This protects your right to access the billboard if a landlord constructs a locked fence or has a tenant who won’t let you on the property.   This covenant also means that the landlord cannot construct a building or plant a tree which obscures.

Determination of maintenance obligations.  It’s fair for you to agree to maintain the easement area where your billboard is but the easement should state that maintenance expenses on the non-easement portion of the property are the landlord’s responsibility.

Payment of property taxes – The property owner is responsible for paying property taxes.  Some property owners will want you to pay your prorata share of property taxes based on the relationship of the easement area to the property area.  The easement agreement should spell out who pays property taxes and how taxes will be allocated.

Liability indemnification – Typically each party to an easement agreement will indemnify the other party from potential liability caused by acts of the other party.

Insurance – The easement agreement needs to clearly state any insurance obligations.  Most landlords will want evidence that you have at leasts $1 million of liability insurance.

Default and termination provisions – Most easement agreements can be terminated for payment default, failure to maintain insurance, failure to meet maintenance obligations.  It’s important to have a notice and cure clause so that a landlord must notify you in writing if you are in default of any provisions of the easement and give you at least 30 days to cure the default before the easement terminates.

Special clauses – If you want an easement to a billboard which will sit in the middle of cornfield you might want to put a clause in the easement which specifies who crop damages will be handled when you have to drive your truck through the field to change the vinyl or service the billboard.

Notarization – You should notarize and record the easement with the local assessors office so that future property owners are aware of the easement.

What else should be in a good out of home easement?  Let insider know using the form below.

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