A purchase agreement in Wyoming is executed for a rural property that includes both land and a certificated water right. The agreement is silent on the water right — it neither includes nor excludes it. At closing, the seller insists the water right is not included in the sale. The buyer insists it is. Under Wyoming law, how would this dispute most likely be resolved?
Correct Answer
D) The seller retains the water right because water rights in Wyoming do not transfer with the land unless specifically included in the purchase agreement
This is a critical Wyoming-specific principle. Under Wyoming water law (W.S. 41-3-101 et seq.) and the prior appropriation doctrine, water rights are a property interest separate and distinct from the land. Unlike many appurtenances that transfer automatically with real property, water rights in Wyoming do NOT automatically transfer with the land. If the purchase agreement is silent on the water right, the seller retains it. Buyers must ensure water rights are specifically identified and included in the purchase agreement.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
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