A buyer and seller are negotiating a Utah REPC for a home in St. George. The buyer's agent asks the seller's agent whether the irrigation water shares for the backyard garden area are included in the sale. The seller's agent says, 'I'm sure they are — they go with the property.' The REPC is signed without any specific mention of the water shares. At closing, the seller retains the water shares. Which statement best describes the legal outcome?
Correct Answer
D) The buyer is not entitled to the water shares because water rights must be explicitly conveyed and the REPC was silent on them
Under Utah's prior appropriation doctrine (Utah Code Ann. § 73-1-1 et seq.), water rights are a separate property interest and do NOT automatically transfer with real property. Because the REPC was silent on the water shares, they were not conveyed to the buyer. The seller's agent's verbal statement is not a binding contractual term — real estate contracts must be in writing under Utah's Statute of Frauds (Utah Code Ann. § 25-5-4), and verbal representations do not override the written contract.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
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