Conservation easements are tailored to the needs of each landowner. To understand how conservation easements work, it is necessary to understand the nature of property. These include the right to farm or ranch, to subdivide, to construct buildings, to restrict access, to harvest timber, or to mine. In many instances, these rights can be separated from the bundle and transferred to another party. Mineral rights, for example, are commonly bought and sold separately from surface rights.
Conservation easements involve the purchase or donation of a property's development rights.
In general, conservation easements limit the amount and location of future structures and define the type of land uses that can occur. With a conservation easement, a landowner can reserve the right to carry out specified activities, such as Limited Development and commercial use of part or all of the land, so long as these activities do not unduly affect the land's conservation value. Easements can be place on an entire tract of land or only part of it. Most landowners who place conservation easements on their land donate them outright to a qualified Land Trust or public agency and continue to live on the property. In addition to safeguarding their property in perpetuity, landowners who donate easements may gain substantial savings in income and estate taxes.