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Ingress and Egress Rights in Commercial Real Estate
In commercial real estate, the right of ingress refers to the legal right to enter a property. The right of egress is essentially the opposite — the legal right to exit a property.
From a purely definition standpoint, ingress is a place or way of going into or entering something, while egress is a way of getting out of something. However, these terms take on a deeper meaning when applied to a commercial real estate asset.
What Are Rights of Ingress and Egress?
In commercial real estate, the right of ingress refers to the legal right to enter a property. The right of egress is essentially the opposite — the legal right to exit a property. In most cases, deeds outline points of ingress and egress.
Rights of ingress and egress are extremely important. Commercial real estate ownership doesn’t inherently translate into a right to access the property. Take, for instance, a property that is landlocked or surrounded by other properties — or one with a shared driveway with a neighboring property. Any of the above scenarios could necessitate the need to obtain the right to utilize another person or entity’s real estate in order to access your property’s land.
Commercial Real Estate Easements
When a property is in a situation like those mentioned above, the owner would typically seek an easement. Easements are legal agreements which grant the right to use another entity’s property in a limited, specified capacity — in this case used to establish rights of ingress and egress for accessing the commercial property. In cases where a registered easement has not been granted through the local authorities, or where ingress and egress issues are not addressed on a property’s deed, a land-use agreement can be utilized instead.
Related Questions
What are ingress and egress rights in commercial real estate?
In commercial real estate, the right of ingress refers to the legal right to enter a property. The right of egress is essentially the opposite — the legal right to exit a property. In most cases, deeds outline points of ingress and egress.
Rights of ingress and egress are extremely important. Commercial real estate ownership doesn’t inherently translate into a right to access the property. Take, for instance, a property that is landlocked or surrounded by other properties — or one with a shared driveway with a neighboring property. Any of the above scenarios could necessitate the need to obtain the right to utilize another person or entity’s real estate in order to access your property’s land.
When a property is in a situation like those mentioned above, the owner would typically seek an easement. Easements are legal agreements which grant the right to use another entity’s property in a limited, specified capacity — in this case used to establish rights of ingress and egress for accessing the commercial property. In cases where a registered easement has not been granted through the local authorities, or where ingress and egress issues are not addressed on a property’s deed, a land-use agreement can be utilized instead.
What are the legal implications of ingress and egress rights?
In commercial real estate, the right of ingress refers to the legal right to enter a property. The right of egress is essentially the opposite — the legal right to exit a property. In most cases, deeds outline points of ingress and egress. When a property is in a situation like those mentioned above, the owner would typically seek an easement. Easements are legal agreements which grant the right to use another entity’s property in a limited, specified capacity — in this case used to establish rights of ingress and egress for accessing the commercial property. In cases where a registered easement has not been granted through the local authorities, or where ingress and egress issues are not addressed on a property’s deed, a land-use agreement can be utilized instead.
How do ingress and egress rights affect the value of a commercial property?
Ingress and egress rights are important for commercial property owners because they provide access to the property. Without these rights, the property may be difficult to access, which can reduce its value. Additionally, if the property is landlocked or surrounded by other properties, the owner may need to obtain the right to utilize another person or entity’s real estate in order to access the property. This can also affect the value of the property.
In most cases, the value of a commercial property is determined by the market, and the availability of ingress and egress rights can be a factor in the market's assessment of the property's value. For example, if a property is difficult to access due to a lack of ingress and egress rights, it may be valued lower than a similar property with easy access.
Easements are legal agreements which grant the right to use another entity’s property in a limited, specified capacity — in this case used to establish rights of ingress and egress for accessing the commercial property. In cases where a registered easement has not been granted through the local authorities, or where ingress and egress issues are not addressed on a property’s deed, a land-use agreement can be utilized instead.
What are the common restrictions on ingress and egress rights?
Common restrictions on ingress and egress rights include the right to use the property for a specific purpose, the right to use the property for a limited amount of time, and the right to use the property in a limited capacity. For example, an easement may grant the right to use a property for ingress and egress purposes only, and not for any other purpose. Additionally, an easement may grant the right to use a property for a specific amount of time, such as five years, or for an indefinite period of time. Finally, an easement may grant the right to use a property in a limited capacity, such as for a single vehicle or for a specific type of vehicle.
Source: Commercial Real Estate Loans
How can ingress and egress rights be negotiated in a commercial real estate transaction?
In commercial real estate, the right of ingress refers to the legal right to enter a property, and the right of egress is the legal right to exit a property. In most cases, deeds outline points of ingress and egress. However, if a property is landlocked or surrounded by other properties, or has a shared driveway with a neighboring property, the owner may need to obtain the right to utilize another person or entity’s real estate in order to access the property’s land. This is typically done through an easement, which is a legal agreement that grants the right to use another entity’s property in a limited, specified capacity. If a registered easement has not been granted through the local authorities, or if ingress and egress issues are not addressed on a property’s deed, a land-use agreement can be utilized instead.
In order to negotiate ingress and egress rights, the owner should contact the local authorities to determine if a registered easement is necessary. If so, the owner should contact the neighboring property owner to discuss the terms of the easement. If the neighboring property owner is not willing to grant an easement, the owner may need to pursue legal action.