Property rights: easement, right-of-way, eminent domain, covenant

One-line orientation

These instruments define what others may do on, or take from, a parcel — easements and rights-of-way (use without ownership), eminent domain (a government taking), and covenants (private deed restrictions). The exam tests who holds each right and whether ownership transfers.

Key points

• Easement:
  • A legal right to use another’s land for a limited purpose (utilities, environmental) — ownership is not transferred.
  • Appurtenant — benefits a particular piece of land (e.g. a driveway easement for a neighbor’s access).
  • In gross — benefits a person or entity (e.g. a utility company’s right to run power lines).
• Right-of-way:
  • The legal right to pass through another’s property — roads, paths, utility lines (e.g. a public road across private land). A passage-type easement.
• Eminent domain:
  • The government’s power to take private property for public use, with compensation (e.g. land for a highway). Ownership transfers; it can be controversial.
• Covenant (CC&R):
  • A legally binding promise in a deed/contract dictating what an owner must or must not do.
  • Affirmative — requires action (maintain a fence); restrictive — prohibits a use (no commercial activity in a residential area).
  • Enforced by HOAs, municipalities, or other owners in the development.
• Right of first refusal:
  • A contractual right to enter a transaction before the owner deals with a third party (e.g. a tenant who can buy before the property is sold to someone else).

Property rights: who holds it, what it allows, does ownership transfer?

Scroll horizontally to compare →

Property rights: who holds it, what it allows, does ownership transfer?

INSTRUMENT	HELD BY	WHAT IT ALLOWS	OWNERSHIP TRANSFERS?
Easement	neighbor / utility	use land for a limited purpose	no
Right-of-way	public / utility	pass through the land	no
Eminent domain	government	take for public use (paid)	yes
Covenant (CC&R)	HOA / neighbors	require or restrict actions	no
First-right-of-refusal	tenant / adj. owner	first chance to transact	if exercised

Ownership (title) transfers only with eminent domain (a government taking) — easements, rights-of-way, and covenants grant use, not ownership.

Confusions / comparison

Instrument	Held by	What it allows	Ownership transfers?
Easement	Neighbor (appurtenant) or entity (in gross)	Use land for a limited purpose	No
Right-of-way	Public / utility / neighbor	Pass through the land	No
Eminent domain	Government	Take property for public use (with compensation)	Yes
Covenant (CC&R)	HOA / neighbors / municipality	Require or restrict owner’s actions	No
Right of first refusal	Tenant / adjacent owner	First chance to transact before a third party	Only if exercised

Related

→ Site survey types (this module): an ALTA survey reveals easements and access to rights-of-way · Setbacks and the buildable envelope (this module): easements as recorded restrictions vs setbacks as zoning rules · Zoning relief (this module): public mechanisms (PUD, overlay) alongside these recorded/governmental rights.