A conservation restriction is a contract between a grantor (landowner) and grantee (a public agency or a land trust). By granting a conservation restriction, a landowner agrees not to use the property in specified ways that might harm the conservation values- the particular features or qualities of the property that are to be protected. The conservation restriction is recorded in the chain of title and requires that present and all future owners of the property comply with its terms. The grantee assumes the responsibility of periodically monitoring the property to ensure compliance with the conservation restriction to safeguard the conservation values.

Benefits
The landowner retains full ownership and the ability to sell or convey the property to anyone at any time, subject to the terms and conditions of the conservation restriction. Because the landowner is only giving up certain property rights, the cost of acquiring a conservation restriction is typically less than the cost to acquire a full fee interest in the land, thus allowing agencies to stretch their limited financial resources.

Another advantage of this conservation method is its adaptability to the needs and wishes of the landowner and the conservation values of the property. A conservation restriction may be written to prohibit all activities that change the natural condition of the property, or it may allow certain agricultural, forestry or other activities. It may permit limited development, but should specify the type, extent and location.

Uses
Conservation restrictions are particularly useful as a land protection mechanism under certain circumstances such as when the landowners want to continue to own the land, when the property is not a high enough priority to warrant acquisition, or when several conservation organizations need to divide up property interests in proportion to their funding commitments (i.e., one organization may hold the fee to a property, and another may hold a conservation restriction). By leaving ownership in private hands, conservation restrictions also help maintain the local tax base in communities that have a large proportion of their land in conservation ownership.

Tax Benefits for the Landowner
To qualify as a tax-deductible gift, a conservation restriction must be written to be effective in perpetuity, and be accepted and recorded by a public agency or publicly supported conservation organization such as a land trust. In addition, the conservation restriction must provide a public benefit such as preservation of:

• natural habitat for fish, wildlife or plants,
  
• open space for the scenic enjoyment of the general public, or pursuant
  to a federal, state or local conservation policy,
  
• land for outdoor recreation by, or the education of, the general public, or
  
• historically important land areas.

The value of a donated conservation restriction is typically deductible for tax purposes. This value is calculated as the difference between the value of the land before and after the imposition of the restriction. For example, a lot worth $100,000 may only be worth $20,000 if a conservation restriction is placed on it that prohibits construction of any kind. The value of the gift would then be the value before the restriction minus the value with the restriction, or $80,000.

Weston Forest and Trail has assisted many landowners in establishing conservation restrictions on their land. Please contact us if you would like to discuss how a conservation restriction may help with preserving your land.