When a seller's property is encumbered by an easement, what must potential buyers be informed of?

When a seller's property is encumbered by an easement, it is essential for potential buyers to be informed about the easement terms and their implications. An easement grants specific rights to another party, typically allowing them to use a portion of the property for a designated purpose, such as access to a neighboring property or utility lines. Understanding the terms of the easement can significantly affect how the buyer plans to use the property and may influence their decision to purchase.

For example, if the easement limits the buyer's ability to build on a portion of the land or requires them to allow access to another party, this could impact the property's value or the buyer's intended use. By disclosing this information, the seller ensures transparency and protects both parties from future disputes related to the easement’s usage.

In contrast, details such as the sale price, property taxes for the last year, or rental potential are important considerations for buyers, but they do not directly relate to the legal use and restrictions tied to the easement. Therefore, knowledge of the easement terms is critical for informed decision-making in a real estate transaction.