Conservation Easement Process

The following is a step-by-step description of the conservation easement process.  Please note that some steps can change order based upon a landowner’s particular situation.

Step 1:    Contact land trusts serving your area to obtain information about their history, experience, and types of conservation values – historical, recreational/educational, wildlife, open space, and/or agricultural – they seek to protect. 

Step 2:    Select the land trust that best fits your situation, and schedule a site visit with land trust staff.  During the site visit, land trust staff will answer questions and assess/document the condition of your land. 

Step 3:    Palmer Land Trust will evaluate your property based upon documentation obtained during the site visit to see if the project meets Palmer’s requirements.

Step 4:    If you and Palmer Land Trust both agree to move forward, then you should highly consider hiring an experienced attorney if you have not already.  Work with the attorney to begin formulating the conservation values of the property and rights that you want to reserve.

Step 5:    Decide whether you want to manage the project yourself by coordinating the necessary consultants or hire someone to do the coordination for you (this is usually done by an attorney).  Palmer staff can also help you navigate this process.  You should consider hiring a tax specialist at this point.

Step 6:    Obtain title commitment and insurance.

Step 7:    Obtain a Mineral Geology Report for your property (only applies to properties with severed mineral estates).  This obligation is imposed on landowners by the Internal Revenue Code.

Step 8:    Contract to have a Baseline Inventory written for the property.  This obligation is imposed on landowners interested in claiming a federal tax deduction by the Internal Revenue Code, and it is a Palmer Land Trust requirement to have this performed.

Step 9:    If a mortgage exists on the property, obtain a subordination agreement from the lender.  This is necessary for two reasons.  First, if you plan to receive tax benefits, you must get the mortgage subordinated.  Second, the absence of subordination can lead to involuntary termination of the easement.

Step 10:  Work with Palmer Land Trust to draft the conservation easement; again, Palmer Land Trust recommends that you obtain legal counsel to perform this task.

Step 11:  Obtain a qualified appraisal dated no earlier than 60 days prior to the date of the contribution of the appraised property.

Step 12:  Finalize the conservation easement (clarify, edit, and revise).

Step 13:  Secure final Palmer Land Trust Board approval with officer signatures.

Step 14: Sign and record the conservation easement.

Step 15:  Submit tax documents to state and federal governments (Division of Real Estate Tax Credit Certificate, Forms 1303, 1304, & 1305; IRS Form 8283)

Step 16: Contribute to Palmer Land Trust’s Easement Stewardship Fund.

Step 17:  Each year after concluding the easement agreement, Palmer Land Trust will contact you and schedule a time at your convenience for its representative(s) to conduct an annual stewardship visit of the easement property.

 Disclaimer: The examples on this website are merely hypothetical situations.  The values, costs, and tax benefits relating to a particular easement will vary for each landowner and each property.  There is no substitute for obtaining competent legal and accounting advice from consultants experienced with conservation easements, accounting, and tax law.