A conservation easement is a legal agreement between two entities, but there are a number of others who may provide critical oversight or support roles. Learning the roles that each of these other entities can play is important to understanding conservation easements, as a tool and its process.
Grantor
When a landowner enters into a conservation agreement, they are said to “grant” a conservation easement – thus, they are the “grantor.” This term applies regardless of whether the grant of a CE was a donation, sale or obtained through some other kind of transaction.
The grantor holds the legal title to the parcel of land in question, and has the right to assign interests in that land to others. The grantor may be an individual, a commercial corporation, a group like a co-op or some other entity entitled to hold private land. The grantor continues to be the land manager throughout the term of the conservation easement.
In the conservation easement negotiation, the grantor is one of the two primary players. The motivations of the grantor are rarely singular or simple. Though the grantor enters into the conservation easement process with a goal to protect the conservation values of their property, they may have associated financial, succession, development approval or other goals.
Grantee
The entity receiving the Conservation Easement is the “grantee”, often referred to as the holder of the CE. In Saskatchewan, they are generally a conservation charity (land trust), a provincial government agency or, in some cases, a municipal government.
The grantee is the other primary player in the conservation easement negotiation because they hold the conservation easement in trust for future generations or the duration of the conservation easement. Depending on the details of the CE agreement, grantee may not have a right to exercise the land interests they receive. For example, if the grantor gives up the opportunity to pursue some type of development on the CE, the grantee does not then have the right to pursue that development.
The role of the grantee is to hold and monitor the conservation easement on behalf of society and the conservation goals prescribed by the agreement. For the term of the conservation easement, the grantee will monitor and enforce the conditions of the CE, working in conjunction with the grantor as the land manager.
Other Interest Holders
The landowner should notify each interest holder (lending institutions for mortgages, industrial players) to ensure they understand the implications of the conservation easement. If these interests have been registered first, they have priority to the conservation easement, but there is the potential for the “order” of interests to be changed.
Professional Advisors
Conservation easements are conceptually straightforward, but complex in implementation. The grantor (landowner) and grantee (qualified organization) may have the expertise required to craft and enact a robust and effective conservation easement, but professional advisement is often recommended. The grantee and grantor may choose to consult advisors as a group, however, legal and financial advice should be sought independently.
Professional advisement may include: Legal advisors – An agency’s template conservation easement document can be used as a starting point, with modifications made to suit individual needs and site specifications. Restrictions lists, baseline reports, and management plans also need to be considered, all of which are best reviewed by legal advisors of both parties. Financial advisors – Landowners may want input from financial advisors who are familiar with their circumstances to review and clarify the financial implications of entering into a conservation easement. Conservation Advisors – The basis of all future monitoring and stewardship is explained in the Baseline Documentation Report or Baseline Report, which inventories and evaluates the ecological, agricultural, and/or scenic values of the property. Some landowners may already have an inventory, but even in those cases, it is worthwhile to have professional assistance to compile the inventory, frame it in a conservation context and gather supporting maps, photos and data. Appraisers –When a CE is purchased by a grantee, an appraisal is required to understand the financial value of a conservation easement. The parties to the CE negotiation need to agree on a certified appraiser with experience and the ability to appraise conservation easements.
