BL18 “Disclose Transmission Pipeline Easements in Real Estate Transactions”
Practice Statement As part of all real estate sales contracts, each state should require the disclosure of known transmission pipeline easements on the property.
Audience(s): Real Estate Commission
Practice Description
Disclosure of transmission pipeline easements should be done in the same way that the state requires disclosure of other environmental risks, such as lead paint or asbestos products. A copy of the easement document and contact information for the transmission pipeline operator should be provided to any prospective purchaser, by the seller or seller’s agent, prior to the time the initial purchase documents are signed. The existence of a transmission pipeline easement on a property should be made clear to all prospective purchasers to enable them to make informed decisions concerning the risks. Though the existence of an easement is typically noted in real estate closing papers or title reports, purchasers can be unaware that the easement is for a transmission pipeline. The disclosure language should make clear that the pipeline easement is for a transmission pipeline. The rights of the property owner and easement holder are typically spelled out in the easement document; it is important that a prospective purchaser have a copy of the easement document to examine.
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