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You would want to consider a license agreement, or an easement, depending on how "permanent" you are prepared to make the arrangement and what it does for you in return.

Granting "permanent" rights can create problems down the line: refinancing, sale.... You're giving your neighbor rights to use your property that a lender or buyer be concerned about. In fact, if you have a mortgage now granting permanent rights could impair your mortgage. There are also zoning and other local ordinance considerations.

A license agreement is by its fundamental nature something you can revoke at any time; it is not even as "permanent" as a lease. This way you can control the situation in case of a refinance or sale of the property. People generally do not record licenses although it is an interest in real estate, but then undoing it would require a recording too.

An express easement grant (i.e. a written agreement) is generally recorded to avoid future claims of adverse possession and/or prescriptive easements. It can also help with property taxes as it is typically considered a "burden" on the property you are granting use of (the "servient" tenament). And not to put easements into a terrible light, they can be revocable too, but again not just "any time" -- usually it must be a specific event such as refinance or sale if its existence may screw things up.

Either kind of agreement would have similar provisions for other things though: insurance, indemnity, compensation if any, property taxes, upkeep/care/repair.... It's just that the easement would have some kind of fixed term (could be forever@!) whereas a license as mentioned is supposed to be "revocable" at any time on stated notice for any reason or NO reason....

Doing nothing can be worse, however, because then the terms of the arrangement are unstated and arguments could develop over whose responsibility it is to fix, pay taxes, insure, etc.

Whatever agreement you decide on, however, you should not just go to a form book. If this is your home and primary asset, spending a little money for a lawyer to help is highly recommended.

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Q: What type of agreement do you need to give your neighbor a shared access to your driveway?
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