Understanding the Legal Impact of Water Runoff on Property
Water runoff can significantly impact both the structural integrity and value of real estate in Wyoming, particularly in subdivisions and residential communities. Realtors need to understand how drainage issues—often exacerbated by improper planning or development—can affect both current and potential property owners. Legal disputes related to water runoff impacts can arise if runoff from neighboring properties floods or damages a client’s land or vice versa.
In Wyoming, if a property is being altered (i.e. being developed or improved) in a way that affects water drainage, property owners may have a duty to act in a reasonable manner that does not adversely affect neighboring properties. While this issue has not yet been settled by the Wyoming Supreme Court, the issue still arises; don’t let your client be the one who has to litigate this issue! This issue is especially important in subdivisions where drainage issues can become a shared concern and drainage easements can be created/utilized. Proper drainage planning must comply with local zoning and building codes to ensure runoff is handled correctly and doesn’t result in damage or nuisance claims.
Drainage Easements in Subdivisions: What Realtors Need to Know
Drainage easements are legal agreements that allow a property owner, developer, or even the City to direct water runoff across someone else’s property in a controlled manner. These easements are particularly important in subdivisions where water runoff needs to be directed away from homes and into common drainage areas or natural watercourses.
As a realtor, it’s essential to:
- Understand the Existence of Drainage Easements: Many subdivisions have drainage easements that may be recorded in the subdivision’s plat map or deed records. These easements allow water to flow through specified areas of neighboring lots. Ensure that your clients are aware of any existing easements before buying or selling a property.
- Check for Restrictions and Limitations: While drainage easements grant certain rights to manage water flow, they often come with restrictions. For example, property owners may not be allowed to build structures or make significant changes that impede the flow of water in easement areas.
- Review the Subdivision’s Master Plan: Some subdivisions may have storm water management plans that include detailed information about water runoff impacts and drainage. It’s important to ensure that any easements for drainage align with these plans, and that buyers are informed of how water will be managed on their property and surrounding lots.
Action Step:
Before listing or purchasing a property in a subdivision, carefully review the subdivision’s plat map for any drainage easements and confirm the terms of these easements with a title company or real estate attorney to avoid future legal disputes.
How Water Runoff Can Affect Property Values and Sales
Water runoff issues, including drainage problems, can have a significant impact on property values and the ability to sell homes. Poorly managed water runoff or unrecorded drainage easements can lead to flooding, soil erosion, and structural damage. These issues can be costly to resolve and may dissuade potential buyers. In the Sheridan area, often homes are built on hillsides and uphill neighbors can easily alter the runoff drainage of any properties below.
Key Considerations for Realtors:
- Property Condition and Damage: Properties with water runoff impacts may experience damage to foundations, landscaping, or basements. Buyers should be informed of any ongoing or potential water issues, and sellers should disclose them upfront to avoid future legal issues.
- Financial Liabilities: If water runoff from a neighboring property causes damage, the property owner could be held financially liable for repairs. A lack of proper drainage easements or a failure to manage runoff could lead to legal disputes over property damage, which might deter buyers from purchasing the property.
- Buyers’ Concerns: Buyers in Wyoming may be particularly wary of water runoff impacts given the state’s topography and variable climate. Properties near hills, rivers, or other natural water sources are especially susceptible to flooding and erosion. Always recommend that buyers have an inspection to assess drainage systems before finalizing the purchase.
Action Step:
Encourage your clients—both buyers and sellers—to address any water runoff impacts before listing or purchasing property. Identifying and addressing drainage concerns upfront can help maintain property value and prevent costly legal disputes.
Tip of the Month: Protect Your Clients with Clear Water Drainage Disclosures
Tip: As a realtor, one of our key responsibilities is ensuring that water runoff and drainage easements are clearly disclosed to your clients. In Wyoming, disclosure requirements for residential properties typically include the condition of the land, including any issues with water drainage.
What You Should Do:
- Provide a Clear Disclosure Statement: When working with sellers, ensure they provide a clear, accurate disclosure regarding water runoff or drainage easements that affect the property. Sellers should disclose any issues with water flow, standing water, or flooding.
- Suggest a Drainage Inspection: Recommend that buyers consider having a drainage inspection as part of their due diligence before completing a purchase, especially if there is a drainage easement that is being utilized. This inspection can identify any existing drainage problems or potential risks related to water runoff.
- Consult a Professional: If there are complex drainage issues or easements, it’s a good idea for both buyers and sellers to consult a real estate attorney or an engineer specializing in water management. This helps ensure that all legal requirements are met, and potential issues are addressed before closing.
By providing your clients with clear, accurate information about drainage easements and water runoff issues, you can help them avoid legal disputes and costly repairs in the future. Sagebrush Law Firm is here to help you in any way with issues tied to water runoff impacts. Schedule a meeting today to talk to our lawyers.