What is an easement in real estate?

An easement in real estate is defined as a legal right that allows one party to use another party's land for a specific purpose. This arrangement typically does not convey ownership of the land but rather grants usage rights. For instance, an easement might permit a utility company to install power lines on a landowner's property or allow neighbors to access a shared driveway.

Understanding this concept is critical in real estate transactions, as easements can significantly affect property value, usage rights, and the owner's ability to develop their land. Easements can also be permanent or temporary and can be created through various means, including express agreements between property owners, necessity, or dedication to public use.

The other options do not accurately represent what an easement is. A type of property ownership refers to the different forms with which real estate can be owned, such as fee simple or joint tenancy. A financing option pertains to methods of securing funds for purchasing property, like mortgages or loans. A restriction on property use usually involves zoning laws or covenants that limit how a property can be used but does not grant any rights to use another's property.