Understanding Crane Swing Easements
As the population of a major city such as Vancouver increases, there is an increase in construction projects both commercial and residential. These new construction projects often require specific legal requests such as crane swing easements that must be pursued in order to facilitate the construction of these projects.
What is a Crane Swing Easement?
A crane swing easement is a legal agreement that allows a developer or builder to swing the boom of a construction crane over your property’s airspace while they work on a neighboring property.
Do You Need a Crane Swing Easement?
Whether you need a crane swing easement largely depends on your property’s proximity to a construction project. Developers often require these easements to ensure they can efficiently execute their projects without encroaching on neighboring properties. If your property is adjacent to a construction site and the builder intends to use a crane, you might be approached to grant this easement.
How Do You Apply for a Crane Swing Easement?
Applying for a crane swing easement typically begins when a developer or builder approaches you with a request. The process often involves legal documentation and consultations with engineers and other relevant professionals. It is crucial to consult with a lawyer to review and negotiate the easement agreement.
How Long Are Crane Swing Easements Good For?
Crane swing easements are typically valid for a specific period, often mirroring the estimated construction timeline, which can range from 1.5 to 3 years. Often developers will add an additional 6-18 months to the estimated construction timeline to account for unexpected delays. Having a set expiration date allows property owners to negotiate additional compensation if the developer needs the easement for an extended period.
What Should a Strata or Property Owner Consider Before Granting an Easement?
Before granting an easement, strata corporations and property owners should consider several critical factors:
Cost Coverage: Assess whether the developer is willing to cover additional expenses, such as legal fees for reviewing the agreement and any required expert reports.
Insurance and Indemnities: Ensure that the developer offers sufficient insurance and indemnities to protect against potential risks associated with construction activities. General liability insurance of $10,000,000 or more should be efficient, but it is recommended that you have an insurance advisor review the provided insurance by the developer.
Easement Duration: Negotiate a reasonable termination date to establish a clear timeframe for the construction project, thus minimizing uncertainty for strata owners.
Registration: Decide whether the easement should be registered at the Land Title Office. Registered easements can bind future property owners, providing more protection.
What Are the Benefits of a Crane Swing Easement
Granting a crane swing easement can offer several benefits to property owners:
Financial Compensation: Developers are often prepared to pay for easements, which can financially benefit strata corporations or individual property owners. Compensation can vary widely, ranging from no compensation at all to five- or even six-figure sums. The compensation you receive depends on various factors, including the specific terms of the easement, the potential non-monetary benefits, and your negotiating skills.
Cost Coverage: Determining the cost of a crane swing easement can be complex. There are a lot of legal costs and consulting fees for the expertise needed to grant easements for construction developments. Developers may cover legal and consulting costs associated with the easement agreement.
Risk Mitigation: Properly structured agreements can protect property owners from potential risks associated with construction activities.
Future Planning: Easements can provide opportunities to address other property-related issues or plan for future property developments.
Granting crane swing easements has become a common occurrence for property owners. Understanding the intricacies of these agreements, including their benefits, costs, and considerations, is essential for making informed decisions. If approached to grant a crane swing easement, it is advisable to seek legal and professional guidance to ensure your interests are protected. If you require assistance with crane swing easements, contact us today to speak to one of our construction lawyers.
