Section 302

Easements

Requirements

You must evaluate:

  • the impact of all easements (public and private), including their effect on the PropertyPropertyMultifamily residential property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in the Uniform Commercial Code). ’s value and marketability; and
  • the impact on life safety issues, environmental risks, and acceptability in the market area for certain types of easements, such as for
    • transcontinental pipelines,
    • high power electric transmission lines, or
    • drainage channels.

Guidance

Easements for normal utilities are generally acceptable, including those that provide natural gas, water, sewer, electricity, or telephone service to the PropertyPropertyMultifamily residential property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in the Uniform Commercial Code). .

Easements that serve other properties will generally be acceptable if they

  • do not interfere with ImprovementsImprovementsBuildings, structures, improvements, and alterations, including the multifamily housing dwellings, now constructed or hereafter constructed or placed on the land upon which the Property is located, together with all fixtures (as defined in the Uniform Commercial Code). on the PropertyPropertyMultifamily residential property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in the Uniform Commercial Code). ,
  • are limited to residential and reasonable commercial use, and
  • are covered by appropriate insurance.