A buyer's agent in Utah is helping a client purchase a rural property that relies on an irrigation water right for farming operations. The listing agent states that the water right 'goes with the property.' What should the buyer's agent advise the client?
Correct Answer
B) Verify the water right conveyance in writing because water rights do not automatically transfer with land in Utah
Under Utah Code Ann. § 73-1-1 et seq., water rights are a separate property interest that do not automatically transfer with real property. A buyer's agent fulfilling fiduciary duties must advise the client to ensure the water right is explicitly conveyed in writing — either through a separate water right deed or by specific inclusion in the purchase contract. Relying on a verbal statement from the listing agent is insufficient and could leave the client without the water rights needed for farming.
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Related Topics & Key Terms
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Related Concepts
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
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