What is Alluvion in Real Estate?

real estate

Updated Nov 08 2022

Alluvion

The real soil growth caused by accretion.

What is Alluvion and Why is it Important?

Alluvion is a term refers to the natural process where water carries and deposits sediment along a shore or riverbank, gradually increasing the land area. This passive process is slow, often going unnoticed for years, and is exhibiting in nature without human intervention.

Over time, these natural deposits can significantly alter landscapes and, by extension, property lines. Typically, property owners discover that their land has either expanded into previously water-covered areas or that new land has been attached to their existing property boundaries.

Real Property Value: One of the most straightforward benefits is the potential increase in property value. As land mass expands through natural sediment deposition, owners may find themselves with larger plots than they initially purchased. This increment in land can significantly increase their value in the local real estate market.

Legal Ramifications: Ownership of newly formed land isn't always cut and dry. In some municipalities, the additional land automatically becomes the property of the landowner, while in others, it might be considered state property.

Taxation: As land areas increase, real property may be reassessed by the city/town for the purposes of increased taxation on the land. Adding 5% of an acre in the rural country might not have a massive affect on your taxes, but adding land near a popular body of water in a vacation town certainly will.

Insurance: Your insurance carrier could increase the premium on your policy should they determine a substantial increase in land mass, or, in the value of your property due to alluvial alteration. Be on the lookout for an insurance company to attach a flood rider to the policy should any water approach a domicile found on the property. Looking at you, Florida.

Financing: With regard to a purchase or sale, lenders may have specific stipulations regarding properties susceptible to significant geographical changes due to alluvion. Don’t trust the owner of the land to know whether or not changes to the alluvium will affect a purchase or sale. In fact, don’t trust real estate agents either, as a real estate license doesn’t convey a mastery of the legal and mortgage underwriting systems.

Impact on Property Ownership

This principle of alluvion asserts that any land that's formed as a result of alluvion becomes the property of the landowner whose property is adjacent to the water.

Verifying Ownership: The first step for a landowner noticing the alluvial effects newly formed land is to establish ownership. More specifically, they need to establish whether or not they or their adjacent neighbor own this land. A local, professional surveying company will help by creating a certified plot plan. A certified plot plan will help to establish the legal rights pertaining to the ownership of a parcel of land.

Regulatory Permissions: In certain areas, even if accretion has expanded a property's size, the use of this new land might be restricted by local or environmental regulations. For instance, the development of the new land could be limited if it's considered a protected habitat.

Additionally, there's the concept of avulsion, where sudden changes in land due to natural events like floods create or relocate large chunks of land. Unlike alluvion, avulsion does not automatically transfer ownership of the new land to the adjacent property owners.

What Impacts Land to Create Alluvial Effects

Geographical location plays a role in whether or not a parcel of land may exhibit alluvial effects. Properties situated along rivers, lakes, or oceans are more prone to the phenomenon as the natural deposit of sediments are ever-changing.

Climate change is proving to be another factor impacting land ownership. With rising global temperatures, the patterns of sediment deposit around water bodies have become increasingly unpredictable. Areas once benefiting from gradual land accretion may now face accelerated erosion or unexpected changes in land formation.

Seasonal weather patterns (El Niño/La Niña as an example) also have their part to play. Periods of heavy rainfall or dry spells can alter the rate at which sediment becomes dispersed along shorelines or riverbanks. Storms such as Hurricane Katrina in 2005 have an affection on sediment dispersion and land repatriation.

Lastly, human intervention cannot be overlooked. Construction projects, dams, or altered water flow due to urban development can significantly impact river deposits and tidal dispersion. Being aware of nearby development plans and engaging with local planning bodies is essential for property owners looking to safeguard their vested interest in real property.

Where is Alluvion Found?

Where else but the mighty Mississippi River? Over decades, the river's natural course has shifted time and again, creating new land on one side while eroding land on the other. Some property owners see dollar signs. Others square off against a loss of acreage.

Other examples can be found in countries such as the Netherlands, where innovative land reclamation projects are commonplace. The Dutch actually create prime real estate by essentially recycling the land through deliberate engineering projects.

What to Remember

Though a formal real estate education is not necessary, as a home/land owner it’s good to familiarize yourself with some property law alongside keeping up with local zoning rules. Each state from New York to California, and each city and town within each state has a different interpretation on how business is conducted with regard to property.

If you’re dealing with Alluvion, it might be good to brush up on a few other legal terms including accretion, erosion, right of way, reliction and riparian rights.

Frequently Asked Questions

Can the course of the Mississippi River changing impact property values?

Yes, changes in the course of the Mississippi River can drastically affect property values. Properties may lose land or gain new land due to alluvion, influencing their overall value and possibly leading to complex legal situations regarding land ownership.

How do the Netherlands’ land reclamation projects use alluvion?

By strategically guiding water flow and sediment placement, The Netherlands creates valuable land in areas previously submerged or at risk of flooding. A fundamentally sound set of laws helps determine who possesses the water rights in such projects.

How can alluvion influence property ownership?

Alluvion can influence property ownership by altering the physical dimensions of property boundaries through natural sediment deposition. Local property law dictates who has a right to claim ownership of the gradual increase (or decrease) of land.