A licensed Montana real estate agent is helping a buyer purchase irrigated farmland in Yellowstone County. The seller's deed does not mention water rights. The buyer's agent advises the buyer that the water rights used for irrigation will automatically transfer with the land because they are appurtenant to the property. Is this advice accurate under Montana law?
Correct Answer
D) No, because Montana water rights, while generally appurtenant to land, can be separately conveyed and must be specifically addressed in the transaction.
Under the Montana Water Use Act (MCA Title 85, Chapter 2), Montana follows the prior appropriation doctrine. While water rights are generally appurtenant to land, they can be separately conveyed and transferred independently of the land. The agent's advice is incomplete and potentially misleading — water rights must be specifically identified, disclosed, and addressed in the purchase agreement and deed. A deed silent on water rights may create significant legal disputes about what was actually transferred.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Community property is a form of ownership recognized in certain states where property acquired during marriage is considered equally owned by both spouses, regardless of who earned the money or whose name is on the title.
Condominium ownership involves owning a unit of airspace within a multi-unit building plus an undivided interest in the common elements shared with other unit owners. Each unit is separately taxed and financed.
In a cooperative (co-op), the building is owned by a corporation, and residents purchase shares of stock in the corporation that entitle them to a proprietary lease on a specific unit. Residents are shareholders, not property owners.
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