A buyer's agent in Oklahoma City is helping a client purchase a rural property with a creek running through it. The seller claims the water rights to the creek automatically transfer with the land. Which statement correctly describes how Oklahoma law treats surface water rights?
Correct Answer
B) Surface water rights in Oklahoma require a state permit and do not automatically transfer with the land.
Oklahoma uses a prior appropriation doctrine for surface water, administered by the Oklahoma Water Resources Board. Under this system, a permit must be obtained from the state to appropriate surface water. Surface water rights do NOT automatically transfer with the land — they are separate state-granted rights. This is a critical distinction for rural property transactions in Oklahoma.
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Related Concepts
Predatory lending refers to unfair, deceptive, or abusive lending practices that impose unjustified terms on borrowers, often targeting vulnerable populations. It includes practices like excessive fees, inflated appraisals, and unnecessary refinancing.
RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
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