Posted in Finance, Accounting and Economics Terms, Total Reads: 176
An appurtenance is something which is attached to more important thing usually attached or adjoined to an asset. Thus it becomes part of that asset only and cannot be separated. It often used in the context of property or real estate. It involves tangible things like sheds, driveway, garage, garden or some intangible things that involves easement or privileges.
Easement involves right of person to use some other land or property or trespassing that property for some specific period or purpose. For example, two houses may have common garage to park their cars so they share common garage and if one of the houses are sold the easement goes with it as well. Although it is different or detached from the property, it still considered as the part of the property or part of the asset. One cannot sell the property without the appurtenance already attached to it. Usually appurtenance is of lower value and is attached to another thing which is more worthy. So thus the appurtenance cannot be removed from the main property and has to be transferred or sold with the property.
There are two types of easements:
a) An easement appurtenant is attached to an estate permanently and it benefits the owner of such estate. This can be transferred and succeeded to someone.
b) An easement in gross is not transferred to another when the easement holder transfers the property. It is personal to holder.