California Real Estate Practice Exam

What happens to an easement when the holder acquires the property over which the easement runs?

1. It is terminated by merger

2. It becomes an easement in gross

3. It is extended by ten years

4. It must be re-negotiated

The correct answer is: It is terminated by merger

An easement is a right to use and/or enter the land of another person for a specific purpose. When the holder of an easement acquires the property over which the easement runs, it is referred to as merger. This means the easement and the underlying property are now owned by the same person, and the easement is no longer necessary as they have full rights over their property. Therefore, the easement is terminated by merger. Option B is incorrect because an easement in gross is not dependent on ownership of the property. It is a personal right granted for the benefit of a specific individual or entity. Option C is incorrect because the extension of an easement would require a formal agreement between the parties involved, not an automatic extension of ten years. Option D is incorrect because the easement does not need to be re-negotiated as it no longer exists once the holder acquires the property over which the easement runs.