Tom is a licensed Wyoming salesperson helping a buyer draft a purchase agreement for a ranch property in Fremont County. The property includes an irrigation ditch and a water right certificated under the prior appropriation doctrine. How should the water right be addressed in the purchase agreement?
Correct Answer
B) The purchase agreement should specifically identify and include the transfer of the water right as a separate item
Under Wyoming water law (W.S. 41-3-101 et seq.) and the prior appropriation doctrine, water rights are a property interest separate from the land and do NOT automatically transfer with the land. The purchase agreement must specifically identify the water right (by certificate number or description) and include its transfer as a distinct item to ensure the buyer receives it at closing.
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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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