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Landowner Perspective: Elk Fork

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Landowner Perspective: Russ and Stacy Oates on Protecting Elk Fork

“Stacy and I came from families that love the outdoors and feel deep connection with wild things and wild places. Growing up on opposite coasts (Stacy in the Napa Valley of California and me in eastern North Carolina), we were both fortunate to have many opportunities to get outside and enjoy the wonders of Nature. We were married in 1984 and, 4 months later, moved to Alaska where I worked as a Wildlife Biologist for the US Fish and Wildlife Service. Our two daughters were born in Fairbanks in 1986 and 1988, and we settled into family life.   In 1995, we decided it was time to get some financial advice to ensure that we could afford to send the girls to college and have a chance of being able to retire. The first thing our new financial advisor said to us was “What are your dreams?” Stacy and I shared an interest in wild lands conservation, so we told the advisor about our dream to protect some woodland. His immediate response was “Buy it now or you never will.” Read more

Mortgages on conservation easement properties

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National Conservation Buzz Topic: Can a mortgage violate your conservation easement?

Curious about how a mortgage or deed of trust could impact your conservation easement? Imagine you need to borrow money at some point, and use your conservation easement property as collateral for the loan. A mortgage typically is not prohibited by a conservation easement.

But consider this: conservation easements limit, and many outright prohibit, dividing the property into smaller parcels. A violation could arise if a mortgage is placed on only a portion of a conservation property (rather than the whole conservation property).

Why? If a lender ever had to foreclose on the mortgage and take title to the portion of the property with the lien, that foreclosure would divide ownership of the property. The lender would own one part of the property and the landowner the rest. As noted above, many conservation easements don’t allow such divided ownership. And, in some states, the act of simply taking out the mortgage on a portion of the property can constitute a legal division.

When considering a mortgage on an existing conservation easement, please consult with your attorney and SAHC staff before you close the loan to ensure no impermissible divisions could occur.