Step 7: Ongoing Partnership

With a conservation easement in place, LPOSC maintains files for each property and works closely with each and every landowner to ensure their needs are met and the terms of the conservation easement are upheld. Annual monitoring site visits of the property are conducted by LPOSC to continue to strengthen this partnership over time.

LPOSC is available to its landowners when questions arise. When the time comes for a landowner to transfer the land to a new owner, LPOSC then begins a new partnership with the new landowner, ensuring the conservation goals for the property remain for generations to come.

Step 6: Colorado Conservation Tax Credit Sale

Upon completion of the DORA review process, landowners will be issued a certificate for CO State Tax Credits. A landowner can then either sell these Colorado Conservation Tax Credits earned in compensation for the Conservation Easement donation, or apply the tax credits to his or her state income tax liability.

Further, the landowner may wish to include the donation of the conservation easement as a other federal income tax deduction.

LPOSC recommends that a landowner consult with a tax advisor to ensure these incentives are fully recognized.

Step 5: State of Colorado Appraisal & Review

As of 2014, the State of Colorado requires that all Colorado Tax Credit-seeking donations be reviewed for accuracy and legitimacy by the CO Department of Regulatory Agencies (DORA). The conservation easement appraisal and deed are both reviewed thoroughly through this state-conducted review process.

This new step in the conservation easement donation process completely eliminates the risk of IRS audit to landowners and appraisers, and ensures conservation donations meet State of Colorado standards.

Step 4: Signing & Recording the Easement

With completed appraisal, minerals assessment, baseline report, and conservation easement deed, the Landowner and LPOSC finalize the conservation easement by signing all necessary documents in the presence of a notary signatory.

LPOSC then records the finalized, signed conservation easement deed with the county or counties in which the property is located and it becomes official record with the title to the property.

Step 3: Conservation Easement Drafting

While the appraisal, minerals assessment, and baseline reports are being completed by consultants, LPOSC staff and board members will review the title commitment and draft a Deed of Conservation Easement to suit the needs of the landowner and to meet the requirements of LPOSC. The landowner then reviews the drafted deed with their legal counsel and works with LPOSC to achieve both parties’ goals in conservation of the property. Legal descriptions, maps, and supporting documentation for the property are prepared and included as exhibits to the deed.

Step 2: Appraisal & Commitment

The Landowner provides LPOSC with a title commitment for the property, and arranges for a conservation easement appraisal to be completed by a certified conservation easement appraiser. If a mortgage exists on the property, LPOSC requires that landowners obtain a subordination, assuring the process may continue.

With the title commitment (and subordination, if necessary) on file and Grantor Agreement signed, LPOSC proceeds with hiring the consultants to conduct a minerals assessment of the property and a baseline report of the natural and manmade features of the property. LPOSC consultants are experienced in accurately reporting on and documenting the resources protected by LPOSC conservation easements.

Colorado Parks and Wildlife is consulted regarding wildlife species and habitat as part of the baseline and conservation easement deed.

Step 1: Landowner Proposal

Conservation begins when a landowner contacts LPOSC and expresses her or his wish to donate a conservation easement. LPOSC will provide conservation easement information, review the landowner’s application and proposed plans for conservation, conduct site visits to the property, and determine whether or not the conservation easement meets LPOSC criteria. Once the LPOSC Board of Directors has reviewed a proposal, a determination is made.

With approved applications, the landowner signs a Grantor Agreement, pays a retainer fee to cover initial costs for hiring consultants, and the conservation easement process continues.