Elena is a broker listing a rural residential property in Skagit County, Washington. The property has no connection to a municipal water system and relies entirely on a private well. During the listing process, Elena learns that the well was drilled in 2005 without a water right permit. The seller claims the well 'qualifies as permit-exempt' because it is only used for household purposes. Elena also discovers that the well is located in a Water Resource Inventory Area (WRIA) where the Department of Ecology has determined that groundwater is over-appropriated. Which of the following statements best describes the disclosure and legal implications of this situation?
Correct Answer
C) The permit-exempt status does not guarantee immunity from curtailment; in over-appropriated WRIAs, permit-exempt wells may be subject to curtailment if they are found to interfere with senior water rights, and this is a material fact that must be disclosed.
While permit-exempt wells under RCW 90.44.050 do not require a water right permit for small domestic withdrawals, they are still subject to the prior appropriation doctrine and can be curtailed if they are found to interfere with senior water rights. In WRIAs where groundwater has been determined to be over-appropriated, the Department of Ecology has heightened authority to regulate and potentially curtail even permit-exempt wells. The Washington Supreme Court's Whatcom County v. Hirst decision (2016) and subsequent legislation (2018 Streamflow Restoration Act, RCW 90.94) addressed these issues, establishing that local governments and the Department of Ecology must evaluate water availability more rigorously in affected WRIAs. This situation represents a material fact about the property's water supply reliability that Elena must disclose to prospective buyers.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
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