Property water rights ownership can be one of the most complex issues when purchasing land. Water is a precious resource and it is essential that you know the current status of a water right prior to purchase to avoid having an expensive land purchase that you can’t use.
There are three types of property water rights; surface, groundwater and watercourse. The rights and responsibilities associated with each vary greatly by state and even within states depending on the type of water source. Surface water includes rainwater, snowmelt and runoff from surface land, a body of water or a stream. Groundwater is water contained in an aquifer and accessed via a drilled well. Watercourse rights are those for a body of water such as a river, lake or ocean that borders a parcel of land. For more info https://www.pandaprohomebuyers.com/selling-a-house-with-mold-maryland/
While a person can own the land adjoining a navigable watercourse, such as a river, they cannot own the water itself. This is because the river is considered to be public property and subject to laws concerning public lands and the right of the public to travel on that public waterway. In addition, the water can be diverted for other uses such as drinking water and irrigation. This is why it is important to always have an attorney review the title commitment when considering a purchase with an existing water right or well on the property.
It is also important to know the current status of a water right when purchasing a property with a surface water feature such as a creek, stream or river or with an aquifer. The right to use this water is dependent on the state’s water law and can be affected by drought conditions or environmental issues affecting that particular region.
Some states follow a riparian rights doctrine while others abide by the law of priority appropriation. In the latter, water rights are established by entitlement to a specific allocation of water for a specified purpose and location. These are often sold separately from the land and can be lost through non-use.
Whether a water right is considered to be attached to the land or to be a separate property right can have significant implications on the value of a property and can affect the ability to obtain a loan for that land. It is essential to know the status of a
water right before making any real estate transaction.
As with mineral rights, it is important to have an appraisal done on a land deal when there is a water right included. It can help ensure that the seller has the right to sell and the buyer knows the expected fair market value of the water rights. There are firms that specialize in providing these valuation services. Just as we tell all our clients looking to sell their minerals, it is important that you have an expert in your corner when selling a property with water. They can help you get the best price and terms for your sale.
