Conservation easements are a legal way to protect the natural resources on your property without giving up ownership or complete control. When you have purchased a piece of land with stunning views, high-quality water sources, wildlife habitats, or agricultural value, you may want it to remain pristine and not be subject to development now or in the future. Once the land has passed on to your family or been sold to someone else, an easement can ensure the land remains safe. However, they can come with the potential for legal disputes. If you are considering entering a land preservation agreement with a land trust or government agency, speak with a Tennessee real estate attorney at King Law Offices to learn more about how these agreements work, your rights, and how to avoid potential legal disputes. Call (888) 748-5464 and schedule your appointment today.
What Is a Conservation Easement?
The South Carolina Land Trust Network describes conservation easements as voluntary legal agreements between landowners and either a government agency or land trust that permanently limit land use. This is done to protect the land’s conservation values. Typically, these agreements limit the ability to use the land to create residential subdivisions or for mining, industrial, or commercial purposes. The land can often still be used for rural uses such as farming, timbering, hunting, and grazing.
The landowners retain many rights when they enter this kind of land preservation agreement. This includes the right to own and use the land, pass it on to their heirs, or sell it. The land must provide some public benefit, such as water quality, scenic views, farm and ranch land preservation, outdoor recreation, wildlife habitat, education, or historic preservation. This permanent legal document does have potential financial and tax implications, so individuals who are considering entering a conservation agreement or purchasing land that is already subject to one should consult with a real estate attorney, and possibly an accountant and appraiser, to get the full view of how the agreement will impact them.
Common Areas of Legal Disputes Over Land Preservation Agreements By State
Throughout the United States, landowners can enter conservation agreements. Some states have enacted the Uniform Conservation Easement Act (UCEA), which is a model law that is meant to clarify and standardize the creation, validity, and enforcement of conservation easements. The Act addresses some common law restrictions that made it difficult to establish legally binding easements. While South Carolina has enacted the UCEA, North Carolina and Tennessee have not. Even with the UCEA enacted in South Carolina, that state and others still see frequent legal disputes over land preservation agreements due to their complexity and permanency.
Many land disputes can arise over conservation easements, and many are common throughout all states. Understanding which ones are most common in the state where the land is located can be crucial to crafting a land preservation agreement that protects the land and decreases the chances of those disputes arising later.
Tennessee
In Tennessee, the most common disputes that arise over conservation agreements include:
- Validity: Challenges to the validity of these agreements include challenging the terms, including claims that they are unreasonable or overly restrictive. Sometimes, there is an argument that procedural flaws existed in the agreement’s creation. Procedural invalidity claims may also arise, including claims that the creation process violated the administrative process, including the notice-and-comment period required by the Administrative Procedure Act (APA).
- Enforcement: Enforcement disputes often include issues over monitoring and inspections, which land trusts and government agencies are typically given the right to do, even if not explicitly granted by the easement. Disputes may also arise when a landowner is accused of intentionally or unintentionally violating the agreement, as land trusts are legally obligated to enforce the terms of the agreement.
- Tax-Related Disputes: Tax-related disputes may arise due to disagreements over the deductibility of donations or over Treas. Reg. § 1.170A-14(g)(6)(i), also known as the “proceeds regulation.”
- Interpretation: Like many other legal documents, interpretation is often the source of disputes over conservation easements. Ambiguity over what is permitted and prohibited, defining “conservation values” and whether certain activities or developments are consistent with the conservation’s purpose, can lead to disputes.
- Other Legal Challenges: Other legal challenges that may be seen in Tennessee include disputes after changes in law, such as the new Farmland Preservation Act, which was signed into law on May 12, 2025. While rare, eminent domain may also be a source of disputes if a government entity attempts to use it to acquire land with a conservation agreement.
North Carolina
North Carolina’s most common legal disputes over conservation easements include:
- Enforcement: If landowners or others engage in activities that the easement holder believes violate the terms of the agreement, disputes over enforcement may arise.
- Interpretation: If specific clauses or restrictions are unclear, the parties involved may interpret them differently, which can lead to disputes over which interpretation is correct.
- Modification or Termination: Under N.C.G.S. §40A-80(b), conservation agreements are perpetual or permanent if the land involved meets all the qualifications under 26 U.S.C. § 170(h). This means that if a landowner changes their mind and wishes to modify or terminate the easement, they will need court approval after showing that the easement no longer serves its original purpose or that enforcement of it would violate public policy.
- Valuation: When conservation easements are involved, disputes over the valuation of the land for tax purposes can arise.
South Carolina
South Carolina enacted the UCEA, but that does not mean landowners in the state do not face potential legal disputes over conservation easements. The most common disputes in this state include:
- Enforcement: As conservation easements age and the land changes ownership through sales or inheritance, questions regarding the interpretation of terms, violations of the terms, or challenges to an easement’s validity may arise.
- Amendments: While it is not uncommon to make amendments to a conservation easement, disputes may arise if the proposed amendment is viewed as diminishing the conservation’s purpose, or conferring impermissible private benefits.
- Perpetuity: The perpetuity or permanence of conservation easements can become a source of disputes if the associated conservation purpose becomes impossible or impractical. These disputes typically are about whether the land preservation agreement can be terminated if this occurs.
- Tax Benefits: Conservation agreements often offer financial and tax benefits to landowners, but this can also be a source of disputes over federal tax implications and tax deductions. Specifically, disputes regarding fraud or potential penalties against landowners can be common.
Preventing and Resolving Disputes
While it may not be possible to prevent legal disputes completely, there are steps landowners can take before establishing conservation easements to reduce the risk of disputes. Additionally, knowing the options for resolving disputes if they do arise can help landowners feel more confident about entering into these land preservation agreements.
Dispute Prevention
One essential way to prevent disputes is to carefully draft the conservation easement document. Ensuring the document is precise and detailed can reduce the risks of conflicts over interpretation and enforcement.
Landowner education and professional guidance are also critical to eliminating legal disputes. Landowners should ensure they fully understand the terms and implications of the agreement, ask questions about any terms or restrictions they are uncertain about, and seek guidance from a Tennessee real estate attorney at King Law Offices to ensure that the document is drafted correctly and that there are no terms or conditions they do not understand or that are not appropriate.
Dispute Resolution
Negotiation and mediation are typically the first options for resolution when disputes arise. Both options take a more collaborative approach and allow the parties to resolve the issue without being adversarial. This is important since they will likely continue to deal with each other due to the easement’s permanency.
In some cases, legal action may be required. A party to the easement may need to seek injunctions, pursue monetary damages, amend the agreement, exchange the easement, require violators to restore the property to its previous condition, or terminate the agreement through court order when allowed. In these cases, landowners will likely want to speak with an attorney to learn more about their rights and options and ensure the legal action is appropriate to the circumstances. In rare instances, litigation may be necessary, but it is typically the last resort.
Key Considerations About Conservation Easements
Landowners should think about some key considerations before entering a conservation easement with a land trust or government agency or purchasing land with an existing land preservation agreement. Understanding these considerations can significantly reduce the possibility of legal disputes and avoid easement violations.
Understand the Land Trust’s Role
Land trusts play a crucial role in monitoring and enforcing the terms of a conservation easement. They must have the resources and commitment to uphold the easement’s conservation goals. Landowners should do their own research into the land trust or ask an attorney for assistance before entering a land preservation agreement to ensure they are partnering with a qualified and properly funded trust that can uphold their end of the agreement.
Know the Conservation’s Purpose
A conservation easement can be established for several reasons, which are very specific and unique. Therefore, when drafting the agreement, it is essential to clearly define the easement’s conservation purpose (wildlife habitat, agricultural, etc.) and ensure that the rights being reserved are consistent with that purpose. If the conservation’s purpose is not clear or the rights are not consistent with that purpose, legal disputes are more likely to occur.
Be Prepared to Use Best Management Practices
When the land is being used for a consumptive purpose, such as agriculture, the easement may require the landowner to use best management practices to balance consumptive activities with resource protection. This may include additional monitoring, stakeholder engagement, adaptive management, more detailed documentation, or further education or training. Landowners should ensure they have a thorough understanding of any best management practices that may be required and be sure they are willing to adhere to them. Landowners should remember that while these agreements are voluntary, they are legally binding once established. This means a landowner should be sure they are willing to balance the public interest in land conservation with the rights of private property owners. Those considering purchasing a piece of land already subject to a land preservation agreement should be certain they are comfortable making such a purchase with the knowledge that their property rights may be restricted by the agreement.
Understand the Durability of Conservation Easements
Conservation agreements are frequently upheld as valid and enforceable, particularly when appropriately drafted and documented. However, enforcement can be complicated by the age of the easement and changes in ownership. This is why it is critical to keep detailed records of the easement and any violations. As these land preservation agreements age, court decisions can play a pivotal role in resolving disputes, interpreting language, determining rights and responsibilities, and upholding the values the easement was intended to protect.
Avoid Syndicated Conservation Easements
The Internal Revenue Service (IRS) has identified syndicated conservation easements (SCEs) as abusive tax schemes. This is due to the often inflated appraisals, disproportionate deductions, and the potential to hinder genuine land preservation efforts. A traditional conservation easement can offer legitimate tax benefits for preserving the land. However, landowners considering entering a land preservation agreement should focus on conservation rather than profit. Entering an SCE is likely to bring IRS scrutiny, including audits, penalties, and potential criminal charges against those who promote them.
How a Real Estate Attorney Can Assist You
Land preservation agreements can be an excellent way to protect land from development that may take away natural resources that benefit local wildlife, residents, or tourists. They can also be a source of legal disputes if not properly drafted and documented. An experienced Tennessee real estate attorney at King Law Offices may be able to assist you with understanding the terms of a land preservation agreement, negotiating those terms, or handling disputes that arise from an existing agreement. Call (888) 748-5464 and book your consultation to learn more about protecting your land with conservation easements.
