Sarah is purchasing a rural Colorado property and wants to ensure that the water rights associated with the irrigation ditch on the property transfer to her at closing. The seller claims the water rights 'come with the land.' Under Colorado law, what must Sarah's broker advise?

Correct Answer

A) Water rights in Colorado are separate from land ownership and must be explicitly identified and transferred in the contract

Under Colorado's prior appropriation doctrine (C.R.S. § 37-92-101 et seq.), water rights are entirely separate property interests from surface land ownership. They do not automatically transfer with the land. To ensure Sarah receives the water rights, they must be explicitly identified, included in the contract, and properly transferred — typically by a separate water rights deed or assignment. Failure to address this in the contract could result in Sarah owning the land without the water rights.