Canal at the edge of a property. What consequences for me?

Hello everyone,
my wife and I want to build. Now we have been offered a plot of land with the small flaw (I’m still not sure if it’s big or small) that a pipeline is to be laid at the edge of the plot. A right of way for walking, driving, and pipelines also exists in a small area around it. As I understand it, the plot must be restored if the company needs to access it and digs up the pipes again. I also don’t have to build over the pipeline. I rather see my garden in that area.

However, the following questions arise for me:

[*]Does the value of my plot and thus the overall property decrease? (I might sell the house at some point)
[*]What happens, for example, in the event of a sewer break? Who is liable then?
[*]Do I need to prepare for any other eventualities?

Thanks in advance

Best regards

Alexander

Hello Alexander,

the value of the plot or the entire property does not decrease because the defect is already known. So you have to decide whether you want to buy the plot including the servitude at price x or not. Of course, the plot is worth less than an equally sized plot in the same location that is unencumbered. How much the price reduction is is a matter of negotiation and also depends on how significant the restriction caused by the servitude is. However, one should not expect large sums, although easements can be compensated by annual payments. This is better over the years than a one-time settlement.

Regarding liability, without guarantee:
if the sewer breaks, the owner of the pipe is liable. In case of water damage, your insurance will cover the damage first if you have insured against water damage and then recover the money from the provider's insurer, i.e., claim it back from there.

What you should consider is the remaining building window. Due to the servitude, your building window should not be affected, i.e., your plot should remain well buildable. Otherwise, you will surely be provided with sample contracts for taking over the right of way and/or the servitude – these contain everything regarding liability, rights, and obligations.

What must be clear to you: these areas are usually not allowed to be planted with trees or hedges, and if the pipe runs through the middle of the plot, in case of an incident, the excavator will come and stand right in the middle of the plot. They will fix everything again, but it’s better if this is located more on the edge of the plot. Having it right in the middle can be quite annoying if there is ever damage to the pipe.

Best regards
Dirk Grafe

Hello, first of all thank you very much for your quick response. It has already helped me a lot.

The line runs right at the edge (see dotted line below). I would definitely like to put a fence or at least a hedge there. I am an open person, but some privacy is not a bad thing. I just don’t understand why you don’t lay the line directly under the path instead of under the property.



Best regards

Alexander

The large dotted line is a zoning boundary, where the type of development changes from WA3 to what is indicated north of it on the plan. If the dashed and dotted line ( .. ___ .. ___ ..) above is supposed to represent the boundary including the pipeline, then the pipeline would actually be directly on the boundary.

Depending on how much working space must be maintained around the pipeline, your hedge/fence can be placed within this distance. Have the utility provider show you sample contracts and pipeline plans; the pipeline including working spaces must be depicted and dimensioned on the property.

I also just looked a bit into the depreciation: for underground pipelines, you can deduct about 10-15% of the property price for the area of the pipeline. So, if a protective strip of 3m is required and the pipeline runs 20m through the property, at €100/m² you could reduce the price by 60m² x €100 x 0.15 = €900. At 10%, it would of course be only €600 in that calculation.

However, this only applies if the further structural use remains and no other restrictions arise from the pipeline. So make sure your building envelope is not affected – your architect should roughly check this before you sign anything.

Best regards Dirk Grafe

The complete offer etc. was supposed to be sent to me this week. I thought I would try to clarify this in advance. I have always been under the impression that the channel runs along the path between the two lines represented by the white rectangles (walking, driving and utility rights). The upper .-.- line is no longer on my property.

Thanks again

Yes, that is the case, it follows from the legend. That doesn't take anything away from you, the building envelope is not reduced by this.

An alternative would be not to buy the 3m strip for the line in the first place. This would mean that the house moves at least 3m north from the southern boundary (which presumably does not represent a restriction, since you are building on the northern boundary anyway!?) and the city itself would have to maintain the line strip. If the street has not yet been surveyed, it doesn't even cost more and you save the land acquisition costs.

However, it might be a "false friend". There are quite a few such strips that are nevertheless maintained by the residents because the cities cannot keep up. Then it doesn't belong to you, but you still mow the lawn.

I don't see any structural restrictions here, if you like the property you can also buy it with the building encumbrance - there are much worse constellations.

Best regards
Dirk Grafe