A recorded easement that does not appear on the property's survey should be:
Correct Answer
A) Identified from the title report and analyzed
Why this is correct: The correct answer is 'Identified from the title report and analyzed.' An appraiser's highest and best use analysis and valuation must account for all legally recorded encumbrances that affect the property's rights. A title report is a primary source for discovering recorded easements, even if they are not physically shown on a survey. The governing principle is that a recorded easement is a real property interest that burdens the title, and its existence must be identified and analyzed for its impact on value, regardless of its physical visibility. Why the other choices are wrong: 'Assumed not to exist' is wrong because an appraiser must not assume away recorded property interests; due diligence requires checking the title. 'Reported only if the easement is plainly visible on site' is wrong because the legal record, not just physical inspection, determines what must be reported. 'Removed from the legal description' is wrong because an appraiser cannot alter a legal description; they report the property as it is legally constituted. Exam tip: Remember the hierarchy of information: recorded legal documents (like a title report) define property rights, which the appraiser must analyze. Physical evidence (like a survey or site visit) complements but does not override the legal record.
Why This Is the Correct Answer
Option A is correct because the title report is the appropriate source for recorded encumbrances, and an easement found there must be identified and analyzed for its effect. Recording provides constructive notice, so the burden runs with the land whether or not the survey depicts it. The analysis considers the easement's type, width, location, and the restrictions it places on building or use, and it may conclude the effect ranges anywhere from negligible to substantial. The appraiser reports the encumbrance and the reasoning rather than resolving the discrepancy between documents.
Why the Other Options Are Wrong
Option B: Assumed not to exist
Assuming a recorded interest away does not extinguish it; recording is precisely what makes the easement enforceable against subsequent owners. An appraisal built on that assumption would value rights the owner does not hold and would mislead the intended user. Where facts genuinely cannot be determined, the correct tool is a disclosed extraordinary assumption, not a silent presumption.
Option C: Reported only if the easement is plainly visible on site
Limiting disclosure to what is visible on site confuses physical observation with legal research. Many easements, including subsurface utility lines, sewer laterals, and access rights not yet exercised, leave no visible trace while still restricting what can be built. An appraiser who reports only what can be seen would routinely miss encumbrances that materially affect development potential.
Option D: Removed from the legal description
Appraisers do not draft or alter legal descriptions, and an easement is a burden on the described parcel rather than a defect in the description itself. Removing anything from the legal description would be practicing outside the discipline and could create a document conflicting with the recorded chain of title. The appraiser reports and analyzes; correcting records is work for a surveyor, title company, or attorney.
Survey shows shape, title shows strings
The survey draws the outline of the land; the title report lists the strings attached to it. A string can exist without ever being drawn, so never conclude from a blank survey that no burden exists.
How to use: When a stem sets two documents against each other, ask which one is authoritative for the question being asked. For recorded rights, the title report governs, and the appraiser analyzes rather than reconciles the paperwork.
Exam Tip
The right answer on encumbrance questions almost always combines identify and analyze. Options that ignore, assume away, or attempt to fix the record are wrong.
Common Mistakes to Avoid
- -Relying on the survey alone to identify encumbrances
- -Assuming an easement without surface evidence has no effect
- -Applying a rule-of-thumb deduction rather than analyzing the specific burden
- -Failing to disclose the encumbrance and the reasoning in the report
Concept Deep Dive
Analysis
This tests where an appraiser gets information about the rights being appraised and what to do when sources disagree. A survey depicts the physical dimensions and improvements of a parcel and shows the encumbrances the surveyor was asked to plot, while a title report lists the recorded matters that legally burden the property. The two documents answer different questions, so an easement can be validly recorded and legally enforceable even though it never appears on the survey, either because the survey predates it, because the surveyor was not asked to show it, or because it has no visible surface manifestation. Recording gives constructive notice to the world, so the easement binds a purchaser regardless of whether the survey shows it. The appraiser's obligation is to identify the encumbrance, understand its terms and location, and analyze how it affects highest and best use, utility, and value, disclosing the analysis in the report.
Background Knowledge
You need to know the difference between appurtenant and in gross easements and how each burdens the servient estate, and that recorded instruments give constructive notice binding on later purchasers. You also need to know what a survey shows versus what a title report shows, and that USPAP requires identifying the characteristics of the property relevant to the assignment, including the property rights and encumbrances.
Real-World Application
A title report on a vacant lot discloses a twenty-foot ingress and egress easement serving the parcel behind, though the survey in the file predates it. You locate the easement from the recorded instrument, determine it crosses the only feasible driveway location, and analyze the reduced development flexibility in your highest and best use conclusion.
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