In Wyoming, water rights aren’t just a side note in rural transactions, they’re a critical part of the deal. Whether you’re helping clients buy a ranch, a recreational property, or undeveloped land, understanding water rights can mean the difference between a smooth closing and a legal headache.
Water Rights Are a Property Right, But Not Automatically Included
Unlike surface land, water rights are separate property interests and don’t always transfer automatically with a land sale. If your client assumes they’re buying water access without confirming the status of those rights, it could result in costly litigation down the road.
Due Diligence is Key
Make sure your clients:
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- Request documentation of existing rights permits (via the State Engineer’s office)
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- Verify the rights are in good standing (i.e. not abandoned due to non-use)
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- Confirm the intended use (irrigation, stock, domestic, etc.) matches their plans
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- Understand the priority date of the right (which affects access during drought)
What Agents Can and Can’t Do
Agents can flag water rights as a material issue and advise clients to seek professional legal guidance, but avoid giving legal advice yourself. At Sagebrush Law Firm, we work with buyers, sellers, and agents to review, transfer, and protect these rights as part of real estate transactions.
Red Flags to Watch For
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- Water being used but no permit on file
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- Out-of-date ownership records with the Wyoming State Engineer’s Office
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- Water rights leased out to third parties
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- Disputes with neighbors over ditch access or maintenance
Need Help?
If you’re working on a rural or agricultural deal, let’s chat. We’ll help ensure your clients understand what they’re really buying and that you stay protected, too.