The veteran owner of land held under a contract of sale with the VLB may, with the VLB's approval, grant easements for highway purposes. Under procedures established by the VLB, the veteran is required to execute and acknowledge TxDOT's easement forms. If the property is the veteran's homestead, the spouse is to join in executing the easement. In preparing the easement, the veteran and the spouse are grantors. However, a special clause must be inserted in the form that more fully explains the condition of ownership. This clause is to read as follows:

The recitation in the form relating to the consideration being paid must be explicit and in detail. A statement of purely nominal consideration is not to be made. All cash consideration paid for the easement must be remitted to the VLB, and such consideration is applied in its entirety to the principal of the veteran's account, with the exception that any cash consideration paid for damages, such as injury to crops, may be retained by the veteran. However, a recitation specifically setting out the amount of this payment and its purpose must be made in the easement form. This must be set out in detail following the parcel property description.

If the veteran is to be paid any money for labor, materials, or services for moving fences or other structures, this fact must be recited in the form and the money must be deposited with the VLB. The VLB will hold this money in an expense account to be paid back to the veteran when the VLB is satisfied that the veteran has accomplished the necessary work and/or supplied the necessary materials.

If the veteran is donating the easement, the consideration clause in the form must show the following statement: “This easement is being donated.” In such instances the veteran should explain by letter the benefits to be received from the granting of the easement. Unless the veteran receives some benefit from the donated easement, the VLB will not approve the easement.

The veteran must pay a fee to the VLB for servicing and filing each easement. Since all money paid for the easement must be paid to the VLB, the veteran must pay this fee out of funds other than those paid by TxDOT for the easement; however, this fee is reimbursable as an incidental expense for transfer of realty. See .

VLB approval is to be indicated on the easement by the signature of the Chairman of the VLB or Acting Chairman of the VLB, together with the seal of the VLB.

The standard retention clause used in TxDOT easement forms must be amended to eliminate the provision that the state will acquire title to improvements due to the failure of the seller to remove them within a specified time. This is required by the VLB for easements but is not required if fee title is being conveyed. Exercise caution in permitting retention of improvements when only an easement is being acquired since failure to remove the improvement means that the state cannot remove the improvement, clear title is not obtained, and lengthy and costly litigation may be required to force removal. This is particularly important on LPA acquisition projects when only easements are acquired.