Reservation in a Deed
In real estate, a reservation in a deed refers to a provision or clause included in a deed that reserves certain rights, interests, or privileges for the grantor (seller) or a third party, even after transferring ownership of the property to the grantee (buyer). Reservations are typically recorded in the deed and become part of the legal description of the property.
Common types of reservations in deeds include:
1. Mineral rights: The grantor may reserve the right to retain ownership of subsurface minerals, such as oil, gas, coal, or minerals, while transferring ownership of the surface land to the grantee. This allows the grantor to retain the right to extract or develop minerals from the property in the future.
2. Easements: The grantor may reserve an easement over the property for specific purposes, such as access, utilities, or drainage. This allows the grantor or a third party to access or use the property for designated purposes while transferring ownership to the grantee.
3. Life estates: The grantor may reserve a life estate in the property, allowing them to retain the right to occupy or use the property for the duration of their lifetime, after which ownership passes to the remainderman designated in the deed.
4. Timber rights: The grantor may reserve the right to harvest timber or wood products from the property for a specified period or under certain conditions, even after conveying ownership of the land to the grantee.
5. Water rights: The grantor may reserve the right to use water from a stream, river, or other water source located on the property, either for domestic purposes or for irrigation, livestock, or other agricultural activities.
Reservations in deeds are legally binding and enforceable, and they can have significant implications for both the grantor and the grantee. Before accepting a deed with reservations, the grantee should carefully review the terms and conditions of the reservations and consider their potential impact on the intended use and enjoyment of the property.
It’s important for both parties involved in a real estate transaction to clearly understand the implications of any reservations included in the deed and to seek legal advice if necessary to ensure that their rights and interests are protected.