What type of right is granted when a developer allows a power company to install transmission lines?

Study for the Indiana RECP Comprehensive Test. Utilize flashcards and multiple-choice questions, each with hints and explanations. Prepare to ace your exam!

The situation describes a power company being granted permission by a developer to install transmission lines on their property. This arrangement is recognized as an easement in gross, which is a type of easement that benefits an entity rather than a specific piece of land.

An easement in gross grants rights to an individual or business, allowing them to use another's property for a specific purpose, such as installing utility lines. Unlike easements appurtenant, which benefit a particular parcel of land and transfer with the land when sold, easements in gross are typically tied to the company rather than any specific land parcel. They can be thought of as personal rights assigned to an individual or corporation, making them well-suited for scenarios involving utilities, such as power companies or telecom companies, where the company maintains the right to maintain and operate on the property irrespective of ownership changes.

In contrast, a license allows temporary use of property but does not convey an interest in the property itself, which would not apply in the context of allowing ongoing installation and maintenance of transmission lines. Encroachment refers to a situation where a property owner constructs a structure that intrudes onto another’s land, which also does not match the scenario presented in the question.

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