Glossary of Land Conservation Terms

Agreement of Sale: A legal agreement between two or more parties that defines the terms and conditions of a conservation purchase.

Appraisal: Professional assessment of property value based on land attributes, market conditions, and zoning by a qualified appraiser.

Bargain Sale: A sale to a land trust (or other qualified entity) at less than fair market value. The difference between the sale price and the appraised fair market value qualifies as a tax deductible, charitable contribution.

Bequest: A gift of land or other asset through a person's will.

Charitable Donation: An outright gift or contribution, with charitable intent, whose value is deductible pursuant to federal and state income and estate/inheritance tax laws.

Charitable Trust: A gift of land as the beneficiary of a living trust or charitable remainder trust.

Compensation Choices: Cash, tax benefits and/or personal satisfaction in exchange for preservation of land.

Conservation Easement: A conservation easement is the legal instrument by which a landowner (a) limits, without relinquishing ownership, the development potential of property which has significant natural resource, open space or habitat value and (b) grants the right to conserve those values. A conservation easement runs with the land - that is, the original owner and all subsequent owners are bound by the restrictions of the easement. The executed easement document is recorded at the County Recorder's Office. This enables all future owners and lenders to learn about the restrictions when they obtain title reports.

Conveyance: A written instrument used to transfer (convey) title to property, such as a deed.

Donation: An outright gift, with or without charitable intent.

Environmental Assessment: Professional evaluation of the presence or absence of hazardous wastes or other debris and its impact on the integrity of the land.

Exchange: A means of trading equities in two or more real properties. Treated as a single transaction.

Fair Market Value (FMV): The amount of money paid for a property offered on the open market for a reasonable period of time with both buyer and seller knowing all the uses to which the property could be put and with neither party being under pressure to buy or sell.

Fee: "fee simple estate" An ownership interest in property. The greatest interest that one can have in real property, being unqualified, of indefinite duration, freely transferable and inheritable.

Gift by Devise: A gift of land through a person's will.

Greenway: A network of protected open space buffering waterways, linking larger natural preserves, and protecting the character of our region. Greenways filter run-off and harmful pollutants from our drinking water, help prevent floods and the resulting damage, provide opportunities for recreation, and protect vital natural areas that animals and plants need to live.

Green Acres: A program of the New Jersey Department of Environmental Protection which provides open space funding to counties, municipalities and nonprofits like D&R Greenway Land Trust.

Installment Sale: A tax motivated mechanism that spreads the income from the sale over several years, thereby helping to reduce capital gains tax.

Irrevocable: Binding in perpetuity. Incapable of being revoked.

Lease Back: A conveyance of property that includes a right to lease by the former owner.

Market Sale: A sale of real property priced at fair market value (FMV).

Nonfinancial Benefits: non-monetary rewards such as public recognition, dispute settlement, mutual protection with neighbors, and peace of mind.

Ownership: Holding lawful title to property. (See title)

Quid Pro Quo: Literally "something for something." An equal exchange or substitution. A value-for-value trade-off of benefits. Frequently involves development trade-offs.

Registry: A registry program honors and recognizes owners of outstanding natural areas for their commitment to the protection of unique sites. Registration is voluntary, nonbinding and involves no payment or receipt of funds. It is an agreement that may be canceled by either party at any time.

Remainder Interest: A conveyance of fee title with life estate reserved.

Reserved Life Estate: Also called Remainder Interest. A conveyance of fee title with a life estate reserved. The right of lifetime tenancy for a specified person(s).

Restriction: A limitation on the use of real property. Property restrictions fall into two categories - public and private. Zoning ordinances are examples of public type. Land trusts use private restrictions in the form of a covenant that specifies permitted and restricted uses.

Restrictive Covenants: Limiting future use of the property through conditions or restrictions.

Right-of-First-Refusal: A recorded agreement that requires landowners, if they receive an offer to buy their land, to allow the land trust to match the offered price.

Settlement: The final transfer of a deed or conservation easement between the landowner and D&R Greenway Land Trust at which the transfer documents are signed and the landowner receives compensation.

Smart Growth: A planning concept that strives to create communities with walkable neighborhoods, mixed land use - including open space, a central business district, and an adequate public transportation system. Through better planning, smart growth allows for the needs of all community members to be met, while protecting the necessary natural areas for a healthy lifestyle. For more information on smart growth, click here.

Survey: A description and mapping of the metes and bounds that define a property's boundaries.

Tax Benefits: Income and estate tax deductions derived from qualified charitable donations.

Title : Indicates "fee" position of lawful ownership and right to property. "Bundle of Rights" possessed by an owner. Combination of all elements constituting proof of ownership.