A Nevada purchase agreement for a rural property includes a clause stating that the sale includes 'all water rights appurtenant to the property.' The seller later claims the water rights were not intended to be included. Under Nevada water rights law, which statement is most accurate?
Correct Answer
B) The explicit contractual language including water rights in the sale would support the buyer's claim that water rights were part of the purchase
In Nevada, water rights are separate property rights that do NOT automatically transfer with the land. They must be explicitly conveyed. When the purchase agreement contains an explicit clause stating that water rights are included in the sale, that written contractual language supports the buyer's position that the parties agreed to include water rights in the transaction. The written agreement controls the terms of the sale.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
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