Sometimes inheriting property comes with hidden problems that can make it feel like a burden.
That was the case for the owner of a 5-acre industrial lot in Lancaster, California. They wanted to sell the property they had inherited, but after listing it the traditional way, they found no takers.
The reason? A classic real estate roadblock: the property was landlocked.
Why Legal Access is Crucial When Selling Land
On a map, the problem wasn’t obvious. A dirt road ran right along the northern edge of the property, connecting to a major street nearby. For all practical purposes, it looked like it had access.
But in real estate, what you can see isn’t the same as what you legally have. A title search showed there was no legally recorded easement, which is a document that grants the right to use that road. Without it, the property was technically an island, and no traditional buyer, developer, or bank would touch it.
We specialize in these kinds of problems, so we bought the property knowing full well the title insurance policy came with a major warning label. It explicitly stated that it did not insure against any loss because of a “lack of a right of access to and from the land.” We took on the seller’s entire problem so they could get their cash and move on.
The Two Year Journey to Secure Legal Access
For anyone facing a similar situation, it’s helpful to see what the process of securing an easement actually looks like. From the day we closed on the property to the day the access was legally recorded, it took a full two years.
Here’s how it unfolded:
- Step 1: The Good Faith Offer. First, we had a survey done to create a professional map of the easement we needed. We then approached the two neighbors whose land the road crossed and offered them each $1,500 to sign an easement agreement.
- Step 2: The Counter-Offer. The neighbors hired a lawyer and came back with a counter-offer of $20,000 each. At that point, negotiations stalled.
- Step 3: The Lawsuit & Settlement. When informal talks didn’t work, the next step was to file a lawsuit to have a court legally grant an easement. This process is called an “easement by necessity.” Once the lawsuit was filed and the legal costs for everyone involved started to add up, settling became a more practical option for the neighbors. We eventually reached an agreement to pay each neighbor $5,000, and the easement was officially and permanently recorded.
The Real Cost of Fixing a Landlocked Property
So, what did it really take to solve this? Here is a transparent breakdown of the costs and time the seller was able to avoid.
- Direct Legal & Survey Costs:
- Survey for Easement Map: $850
- Attorney Fees for Lawsuit & Agreements: $10,000
- Settlement Payments to Neighbors: $10,000
- Holding Costs (while the legal process played out):
- Property Taxes for 2 Years: $7,472
In the end, the total investment was $28,322 and 24 months of waiting.
Your Options for Selling a Landlocked Property
When you own a landlocked property, you’re standing at a fork in the road.
- The DIY Route: You can take on the process yourself. As this case study shows, it’s possible, but you should be prepared for a significant investment of time and money, with no guarantee of the final cost or outcome.
- The Direct Sale: You can sell the property as-is to a buyer who specializes in solving these problems. This allows you to get your cash now and transfer the entire headache—the negotiations, the legal fees, the waiting—to someone else.
Every situation is different, of course. If you want a complete overview of the different strategies involved, you can read our full guide on how to sell landlocked property.
If you’re facing a similar access issue and want to learn more about the direct sale option, contact us today. We’d be happy to provide a no-obligation cash offer and show you a clear path forward.
