Reciprocal Easement Agreement

Reciprocal Easement Agreement

Drafts a recordable REA creating perpetual cross-easements and operating covenants between adjacent commercial parcels developed as an integrated project.

Prerequisites

Gather before drafting:

1. Legal descriptions — metes-and-bounds or lot/block for each parcel (Exhibits A & B)
2. Site plan — boundaries, access points, drive aisles, parking layout, common areas (Exhibit C)
3. Utility plan — existing/proposed corridors, connection points (Exhibit D)
4. Party info — full legal names, entity type, jurisdiction, principal addresses
5. Development details — use type, GLA per parcel, parking ratios, anchor tenants, phasing
6. Existing encumbrances — title reports, easements, CC&Rs, zoning conditions
7. Business terms — cost-sharing formula, maintenance standards, use restrictions, insurance minimums

Document Structure

Draft sections in this order:

Section Specifications

§4 — Access Easements

• Non-exclusive, perpetual, 24/7 vehicular and pedestrian
• Beneficiaries: owners, tenants, subtenants, employees, customers, invitees, licensees
• Covers: driveways, drive aisles, fire lanes, sidewalks, crosswalks, turning radii, queuing areas
• Relocation: 60 days' notice; substantially equivalent; must meet building/fire/ADA codes; new route operational before old closed
• Emergency vehicle access maintained at all times per fire department requirements

§5 — Parking Easements

• Non-exclusive shared parking (exclude designated reserved spaces)
• Minimum ratios tied to GLA and use type — align with local zoning
• No reduction below minimum without other party's written consent (sole discretion)
• Each owner enforces/tows on own parcel
• GLA increase beyond original plan triggers additional parking requirement

§6 — Utility Easements

• Perpetual, non-exclusive: water, sewer, storm drainage, gas, electric, telecom, cable
• Corridor widths: 15 ft underground; 20 ft where structures/equipment present
• Work protocol: 10 business days' notice (emergency exception); workmanlike manner; prompt surface restoration
• Shared infrastructure cost by proportionate benefit or metered usage
• Obligation to extend services for future development on either parcel

§7 — Maintenance Covenants

• Each owner maintains easement areas on own parcel to first-class commercial standard
• Covers paving (seal coat, restripe, resurface), landscaping (mow/prune/irrigate/replace), lighting (prompt replacement, adequate illumination)
• Shared facilities (monument signs, entry features) — cost split by GLA ratio
• Cure: written notice → 30-day cure (immediate for safety) → self-help with cost recovery + attorney fees

§8 — Cost Sharing

• Default: GLA ratio (Parcel GLA ÷ total Project GLA)
• Alternatives: metered usage (utilities), space count (parking)
• Invoice within 30 days with documentation; payment due within 30 days of invoice
• Late interest: lesser of 1.5%/month or statutory maximum
• Major expenditures (>$50K): advance notice with scope, estimate, allocation basis; other party may review/suggest alternatives
• Consider reserve accounts for capital replacements

§9 — Use Restrictions

• No obstruction of easement areas or permanent structures in corridors
• No storage in access/parking areas; no hazardous materials beyond normal commercial operations
• No nuisance (noise, odors, vibrations); no manufacturing inconsistent with development character
• Design controls: signage subject to approval; new construction must be architecturally compatible
• Drainage: no alteration adversely affecting adjacent parcel; maintain stormwater compliance

§10 — Insurance & Indemnification

• Mutual indemnification for claims from indemnitor's use/maintenance/operation or REA breach
• Carve-out for indemnitee's negligence or willful misconduct
• Survives termination; extends to officers, directors, members, managers, employees, agents

§11 — Term & Recording

• Perpetual; covenants run with the land; binding on all successors including through foreclosure/deed-in-lieu
• Record immediately in county official records
• Future deeds/mortgages/leases must reference recording info
• REA controls over subsequently recorded CC&Rs absent written amendment
• Require lender SNDA recognizing easement rights survive foreclosure

§12 — Enforcement & Remedies

• Remedies: specific performance, injunctive relief, declaratory relief, damages
• Stipulate unique nature / irreparable harm (no bond for injunction)
• Pre-suit notice: 30 days non-emergency; 10 days safety/material interference; extension if cure diligently pursued
• Mandatory mediation before litigation (except emergency injunctive relief / TRO)
• Prevailing party recovers attorney fees, expert fees, costs

§13 — Amendment & Termination

• Amendment: written, signed by all current owners, recorded
• No oral modification; no waiver by course of dealing
• Termination: recorded written instrument by all owners
• Consolidation: easements may terminate on single ownership; operational covenants survive
• Subdivision: REA binds all resulting parcels; unauthorized termination/release is void

§14 — General Provisions

Include: governing law (situs state, no conflict-of-law), severability with reformation, notice (personal delivery / overnight courier / certified mail with deemed-received rules), no contra proferentem, headings non-substantive, entire agreement / merger, counterparts, lender subordination/recognition.

Execution Blocks

Notarial acknowledgment must comply with recording-state statutory form (venue, personal appearance, identification, notary signature/seal/commission expiration).

Checks

• Extract all property details and party info from provided documents before drafting
• Flag missing information with [INSERT] placeholders and completion instructions
• Verify legal descriptions match deeds and title policies
• Confirm parking ratios comply with municipal zoning code
• Adjust insurance minimums to project scale (stated minimums are baselines)
• Cross-reference all exhibits with "attached hereto and incorporated herein by reference"
• Confirm multi-state parties' authority to transact in property's state
• Use statutory short-form acknowledgment where adopted
• Mark unconfirmed statutes/ordinances with [VERIFY]