|
With land and easement acquisition season in full swing, we wanted to highlight a troubling trend: land trusts knowing about legal issues on properties — like possible encroachments, boundary line discrepancies, mowing and dumping — and still going ahead with the acquisition. Terrafirma’s policy explicitly excludes coverage for issues that pre-date a land trust’s acquisition of the parcel.
Removing these pre-acquisition issues before acquiring title is the least costly and time-consuming alternative and the moment when you have the most leverage. You could alternatively sign an agreement about each side’s rights and responsibilities relating to the issue if the land trust wishes to move forward (along with hold harmless and indemnification provisions for the land trust) or consider postponing the closing pending transaction until resolution. This approach aligns with Standards and Practices 9, 8 and 12, and the need to carefully evaluate acquisitions for potential threats to the conservation values and other risks.
We’re here to help! If you have any questions, please let us know.
|
