Utah Court of Appeals

Can parties reserve an easement for someone who is a stranger to the deed? Potter v. Chadaz Explained

1999 UT App 095
No. 971756-CA
March 25, 1999
Affirmed

Summary

Chadaz appealed the trial court’s grant of summary judgment quieting title to a 66-foot parcel in favor of the Potters. Chadaz claimed an easement based on language in various deeds and agreements, but had conveyed away her interest in the property before any alleged reservation was made.

Analysis

The Utah Court of Appeals in Potter v. Chadaz reaffirmed an important limitation on easement creation: parties cannot reserve easements for third parties who are “strangers to the deed” and lack any interest in the property.

Background and Facts

Chadaz sold approximately 47 acres to Heritage Partners in 1980, including a 1.58-acre parcel containing the disputed 66-foot strip. Heritage Partners later conveyed this parcel to Villatek, with language purporting to reserve a right-of-way “for the purpose of a proposed road.” A supplemental agreement between Chadaz and Heritage also referenced a potential reservation of a 66-foot roadway. Years later, after the Potters acquired part of the property and built improvements, Chadaz claimed an easement over the strip she had never used.

Key Legal Issues

The court addressed whether any express easement, easement by implication, prescriptive easement, or easement by necessity existed in favor of Chadaz. The primary issue concerned whether parties to a land transaction can reserve easements for third parties who lack property interests.

Court’s Analysis and Holding

The court held that no easement existed, applying the “stranger to the deed” doctrine. Under Johnson v. Peck, parties cannot reserve easements for third parties who have no interest in the property. Since Chadaz had conveyed away her interest months before Heritage attempted to reserve the right-of-way, she was a stranger to the subsequent deed. The court emphasized that public policy favors certainty in real property titles and protecting bona fide purchasers. Additionally, Chadaz could not establish other forms of easements because she had never used the disputed strip and her property was not landlocked.

Practice Implications

This decision reinforces that proper easement planning requires careful timing and structure. Property owners seeking to preserve access rights must either retain interests in their original conveyances or obtain direct conveyances from subsequent grantees. The stranger to the deed doctrine protects title certainty but requires practitioners to draft conveyances that avoid third-party reservations.

Original Opinion

Link to Original Case

Case Details

Case Name

Potter v. Chadaz

Citation

1999 UT App 095

Court

Utah Court of Appeals

Case Number

No. 971756-CA

Date Decided

March 25, 1999

Outcome

Affirmed

Holding

A party cannot reserve an easement in favor of a third party who is a stranger to the deed and has no interest in the property at the time of conveyance.

Standard of Review

Correctness for conclusions of law on summary judgment

Practice Tip

When drafting property conveyances involving easements, ensure the beneficiary either retains an interest in the property or receives a direct conveyance rather than attempting to reserve rights for third parties.

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