A conservation easement on your Colorado land isn't a deal-breaker — but it changes everything about how the sale works. The easement is a perpetual restriction recorded on your title under C.R.S. § 38-30.5-101 et seq., and it binds every future owner. It can cut 40–70% off market value. It may require the easement holder to approve the buyer. And if your easement was one of the thousands caught in Colorado's 2003–2011 tax credit scandal, there may be unresolved IRS or CDOR exposure that surfaces during due diligence. We've bought conservation-easement land across the Western Slope, San Luis Valley, and Eastern Plains. Call 970-478-1022 and we'll tell you straight what your land is worth with the easement attached.
A conservation easement is a voluntary, legally binding agreement recorded in the county clerk and recorder's office. Under C.R.S. § 38-30.5-101 et seq. — Colorado's Conservation Easements Act — the easement runs with the land in perpetuity. It restricts what any owner may do with the property, regardless of when they bought it.
Each easement is unique, but Colorado easements commonly prohibit subdivision, commercial development, new structures beyond a defined building envelope, surface mining, and certain agricultural intensification. They typically require landowner notification to the holder before any sale and may require the holder's review of the buyer's intended use.
The easement holder — often a land trust such as Colorado Open Lands, Colorado Cattlemen's Agricultural Land Trust (CCALT), or Great Outdoors Colorado (GOCO) — has standing to enforce the restrictions and monitor the property annually. Violating the easement can result in legal action by the holder to restore the property at the owner's cost.
Conservation easements typically reduce market value by 40–70%, depending on what's restricted. An easement prohibiting subdivision and commercial development on 200 acres of Park County land worth $3,000/acre unrestricted might leave that land worth $900–$1,800/acre. The appraisal compares the before-easement value to the after-easement value — the difference is the charitable contribution for federal tax purposes under IRC § 170(h).
Colorado enacted a state conservation easement tax credit at C.R.S. § 39-22-522. Landowners who donated a qualified easement could claim a credit against Colorado income tax — and under C.R.S. § 39-22-522(7), unused credits can be transferred (sold) to other Colorado taxpayers. The credit was worth up to 75% of the donated easement's value, making it enormously lucrative.
Between roughly 2003 and 2011, abuse of the credit became widespread. Inflated appraisals — some dramatically overstating before-easement values — generated credits far exceeding legitimate conservation value. The IRS and Colorado Department of Revenue (CDOR) audited thousands of transactions. If your easement was donated in this window, confirm with a Colorado tax attorney whether your credit was audited or disallowed before you sell. Title companies will ask.
For federal purposes, a donated conservation easement qualifies as a charitable deduction under IRC § 170(h) if it is granted to a qualified organization, made exclusively for conservation purposes, and permanent. The IRS has scrutinized syndicated conservation easement transactions aggressively since 2016 — if your easement was part of a syndicated deal, get tax counsel involved before closing.
Easements under C.R.S. § 38-30.5-101 et seq. are intended to be permanent. Termination requires either a court proceeding establishing that conditions have changed so fundamentally that the conservation purpose can no longer be achieved, or a formal extinguishment with proceeds distributed to a replacement conservation purpose. Neither is a quick process. If you're trying to remove the easement to improve marketability, plan on 12–24 months minimum and significant legal fees.
If your Colorado land has a conservation easement AND severed minerals, the mineral owner may have surface access rights for extraction. Many easement documents specifically address mineral development — some prohibit it entirely, others allow it within limits. If the minerals are severed and the easement is silent on extraction, the mineral owner's rights under Colorado split-estate law may override parts of the easement. This is a complicated intersection — get title counsel to review it before you price the land.
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Western Slope (Mesa, Delta, Montrose counties): Agriculture-focused easements protecting irrigated orchard and hay ground are common. Easement restrictions typically allow continued farming but prohibit residential development and subdivision. After-easement values on irrigated ground: $3,000–$6,000/acre depending on water rights strength. We've closed several deals along US-50 and US-285 corridors where the easement was a known factor priced into our offer.
San Luis Valley (Costilla, Conejos, Alamosa counties): Some of the oldest and most conservation-encumbered land in Colorado. CCALT and Colorado Open Lands hold significant acreage here. Ranching-use easements are the norm; subdivision is universally prohibited. Pasture and range ground after easement: $400–$900/acre depending on water and access.
Front Range mountain counties (Park, Teller, Clear Creek): Open space easements held by county governments and private land trusts restrict scenic corridor and recreational value land. After-easement values vary widely — land near I-70 with easement can still trade at $2,000–$4,000/acre if ag use is permitted and the building envelope allows a primary residence.
For related guidance, see our pages on selling Colorado agricultural land, mineral rights interaction, Colorado closing timeline, and Colorado land valuation.
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Get answers to common questions about selling your land
Yes. A conservation easement under C.R.S. § 38-30.5-101 et seq. restricts use but does not prevent sale. The easement encumbers title and binds every future owner. Most easements require written notice to the holder before closing; some require holder review of the buyer. The easement stays in place; only the owner changes. We buy easement-encumbered land regularly statewide.
Typically 40–70%, depending on the restrictions. An easement prohibiting subdivision and development eliminates the highest-value uses, which drives the largest reductions. Easements allowing continued agriculture on already-ag-classified land have a smaller impact. The after-easement appraisal compares restricted-use value to unrestricted market value under C.R.S. § 38-30.5-101 standards.
Colorado grants a state income tax credit up to 75% of the donated easement's appraised value under C.R.S. § 39-22-522. Under § 39-22-522(7), unused credits can be transferred and sold to other Colorado taxpayers. Credits donated between 2003–2011 were subject to significant IRS and CDOR audit scrutiny due to widespread appraisal inflation in that period. Confirm credit status before selling.
It depends on the easement document. Many Colorado easements require only written notice to the holder before closing. Some require the holder to review and approve the buyer's qualifications or intended use, particularly easements with specific agricultural-use requirements. A few include a right of first refusal. Read the recorded easement — that document controls, not general assumptions about how easements work.
Easements under C.R.S. § 38-30.5-101 et seq. are intended to be permanent. Termination requires a court finding that the conservation purpose can no longer be served, or a formal extinguishment with proceeds directed to equivalent conservation purposes. This process takes 12–24 months and significant legal fees. Selling the land subject to the easement is almost always faster than attempting to remove it.
Yes, potentially. If minerals are severed from the surface, the mineral owner retains surface access rights for extraction under Colorado split-estate law. Many easements specifically restrict or prohibit mineral development. If the easement is silent on mining or drilling, the mineral owner's rights may override easement restrictions in some circumstances. Review the easement language and any applicable C.R.S. § 38-30.5-101 et seq. provisions with title counsel before pricing the land.
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