Water rights have been a significant topic in the real estate industry, especially where water resources are scarce. These rights refer to the legal privileges of using and controlling water from freshwater sources such as rivers, lakes, or underground aquifers.

In the United States, water rights are a crucial aspect of property ownership and can significantly impact real estate’s value and development potential. This document will discuss the basics of water rights in real estate.

What are water rights real estate?

Water rights in real estate refer to the legal entitlement of an individual or entity to use and access water from a specific source for various purposes, such as domestic, agricultural, industrial, or recreational use. These rights are often associated with properties that have a natural water source, such as rivers, lakes, streams, or aquifers.

In the United States, water rights are typically governed by state laws, which can vary significantly from one state to another. However, some common principles apply to water rights in real estate nationwide.

Property with water rights is often considered more valuable due to the potential use and benefits of having access to water. It can also determine the development potential of a property, as some land may only be suitable for certain types of development with proper water rights.

Types of Real Estate Water Rights

There are two main types of water rights: riparian rights and littoral rights in real estate real estate.

Riparian rights

Riparian rights are based on the principle that all landowners along a natural water source have equal rights to use the water for reasonable purposes, such as irrigation or household consumption.

Example- If you own a property along a river, you have the right to use water from that river as long as it doesn’t interfere with other riparian landowners’ reasonable use of the same water source.

Riparian rights

On the other hand, Riparian rights real estate apply to owners of properties adjacent to large bodies of water, such as oceans or seas. These rights typically grant the owner a small portion of shoreline access and allow them to use the water for reasonable purposes, such as fishing or boating.

Example-  If you own a property on the coast, you may have the right to access and use the water for activities like swimming or sunbathing. Still, you must refrain from interfering with other adjacent property owners’ reasonable use of the same water source.

What is the difference between riparian rights and Littoral rights?

Riparian rights apply to properties along rivers, streams, and other natural water sources, while Littoral rights apply to properties on large bodies of water like oceans or seas.

Riparian rights are based on equal access for all landowners along the same water source, while Littoral rights only grant a small portion of shoreline access.

Water use under riparian rights is typically limited to reasonable purposes such as irrigation or household consumption, while Littoral rights may also allow for recreational activities like swimming and boating.

Riparian rights can be affected by changes in the water source, such as droughts or floods, while Littoral rights are generally more stable since they are tied to a specific shoreline.

State laws govern riparian rights, while Littoral rights may also be subject to federal regulations in some cases.

So, riparian vs littoral rights differ in terms of the type of water source, access to that water, and the purposes for which it can be used. However, both water rights are essential for property owners who want to utilize their natural water resources.

What is the process of obtaining water rights for a property?

Obtaining water rights for a property can vary depending on the location and type of water source. In general, here are the steps involved:

Determine if your property is eligible for water rights: Depending on the state laws, not all properties may be eligible to obtain water rights. For example, some states require a minimum amount of land or specific land use for water rights eligibility.

Identify the type of water source: Different types of water sources may have different application processes and regulations. It is essential to know if the water source is surface water (rivers, lakes) or groundwater (aquifers).

Research state laws and regulations: Each state has its own laws and regulations for water rights, so it is crucial to research and understand the specific requirements and application processes.

Obtain necessary permits: In addition to water rights, you may also need permits from local or state agencies for any proposed water use.

Submit an application: Depending on the state laws, you may need to apply to a state agency, such as the Department of Water Resources or the State Engineer’s Office.

Go through a review process: Once your application is submitted, it will go through a review process by the state agency. This may include evaluating your proposed water use and potential impacts on other water users.

Receive approval: If your application is approved, you will receive a water rights permit or certificate outlining your legal entitlement to use the water from the specified source.

Frequently Asked Questions-

Can water rights be transferred between properties?

Yes, water rights can be sold or transferred to another property owner as long as state laws and regulations allow it. In some cases, there may be restrictions on transferring water rights, such as a minimum amount of land required for eligibility.

What happens if there is a dispute over water usage?

Disputes over water usage are common and can be resolved through various methods such as negotiations, mediation, or legal action. In most cases, state laws guide resolving disputes between water rights holders.

Are there any limitations on water rights?

Yes, there are limitations on water rights to ensure fair use and conservation of the resource. These limitations may include restrictions on the amount of water used or specific purposes for which it can be used.

Can water rights be terminated?

Water rights can be terminated if they are not exercised or if the owner has violated state laws or regulations. This can also happen if water sources are unavailable due to natural causes or environmental changes.

Conclusion

Water rights are essential to real estate, and understanding the different types and processes involved in obtaining them is crucial for property owners.

By following state laws and regulations, water rights can be legally obtained and used for various purposes while ensuring this valuable resource’s conservation and fair use.

Therefore, property owners need to research and understand water rights in their specific location to ensure compliance and responsible usage.