What Is a Conservation Easement?
Florida is home to fragile wetlands, endangered species habitats, and sprawling agricultural ranches. To protect these lands from being paved over by developers, property owners can grant a conservation easement to a qualified organization, such as the Florida Department of Environmental Protection or a non-profit land trust.
When a landowner signs a conservation easement, they are voluntarily giving up their right to heavily develop the land. They still own the property, they can still live on it, and they can usually still farm it. However, the easement permanently forbids them—and all future buyers of the land—from building subdivisions, strip malls, or massive commercial operations on the protected acreage.
Massive Tax Benefits
Why would a landowner voluntarily destroy the commercial value of their own real estate? Because the federal government offers massive financial incentives to do so.
When a landowner places a conservation easement on their property, an appraiser calculates the value of the land before the easement (e.g., $10 million if sold to a developer) and the value after the easement (e.g., $2 million as an undevelopable ranch). The difference ($8 million) is considered a charitable donation. The landowner can use this massive deduction to wipe out their federal income tax liabilities for up to 15 years. Furthermore, because the land's value is drastically reduced, the owner's annual property tax bill drops significantly.
It Runs With the Land
A conservation easement is a permanent encumbrance recorded on the deed. It "runs with the land," meaning it binds every future owner in perpetuity. If the original rancher sells the protected land to a wealthy investor fifty years later, that investor is still legally bound by the easement and cannot build a hotel on the property.
Related Terms
- Easement — The overarching legal concept of granting property rights to others
- Deed — The document where the conservation restrictions are permanently recorded
- Appraisal — The strict valuation required to claim the IRS tax deductions
Barnes Walker Land Use Law
Barnes Walker's attorneys assist large-scale Florida landowners in negotiating the specific, permitted uses within conservation easements, ensuring they maximize their IRS tax benefits while retaining the ability to use their land for private recreation or agriculture. Request a legal inquiry for assistance.
Florida Law Reference
Fla. Stat. Ch. 704
Governs the creation, scope, and termination of easements in Florida, including easements by necessity and prescription.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC