Welcome to the TheERAadvantage.com Blog

2015-09-21 16:11:44
Difference Between a Water Right and a Water Share

In the many conversations I have had with others regarding water-related issues, the most common mistake I hear is the confusion between 'water right' and 'water share.' Hopefully the following discussion will clarify the distinction.

In Utah, all water is owned by the public. The Utah Code provides that 'All waters in this state, whether above or under the ground are hereby declared to be the property of the public, subject to all existing rights to the use thereof. ' The Utah Division of Water Rights administers the water on behalf of the public. In order to legally use water, a person must have a water right; in other words, the person must have permission from the Utah Division of Water Rights to use some of the public's water.

Many water rights are owned or held by mutual water companies (e.g., canal companies, ditch companies, or irrigation companies). The company issues stock to shareholders. By owning stock, a shareholder is entitled to use a portion of the company's water right. For example, if a ditch company owns a water right for 1,000 acre-feet of water and the company has 1,000 shareholders, each share represents the right to use 1 acre-foot of water from the company's water right.

The two terms are not interchangeable. Water shares ARE NOT water rights. The distinction between water rights and water shares is important for many reasons. For example, the manner of transferring water rights and water shares differs drastically. To transfer water rights (which are generally considered real property), a seller must convey the water right by deed, the deed must be recorded in the proper county recorder's office, and a Report of Conveyance must be filed with the Division of Water Rights.  Water shares are transferred according to the Utah Uniform Commercial Code and the water company's rules and regulations--generally by the seller endorsing the back of the share certificate and then having the company secretary issue a new share certificate to the buyer.

 

Information provided by Jeff Gittins of Smith Hartvigsen Law Firm

 

For your real estate needs in Logan Utah-ERA ERA Advantage Realty​ 435-752-8222 http://www.theeraadvantage.com

 
Blog Archive
2017-12-06 10:35:56
Short Sales Are No Bargain For Buyers

2017-12-01 12:38:16
How to Tell if You are Buying a Meth House

2017-11-30 14:02:07
How to Find Foreclosures and Government-Seized Homes

2017-11-29 13:09:46
Types of Mortgage Loan Programs

2017-11-28 12:43:47
Why Pre-Approval is Crucial to Your Home Search

2017-11-27 12:15:33
How to Scare Off Homebuyers in 10 Easy Steps

2017-11-22 14:34:45
Why Are Whole House Inspections important

2017-11-21 12:49:20
10 Reasons to Sell your home during the Holidays

2017-10-10 15:10:29
Understanding Fannie Mae and Freddie Mac

2017-09-06 12:42:44
Home Sales Expected to Soar Through 2018: What Buyers Need to Know

2017-08-21 12:15:19
It's the Time of the Season for Selling a House—or Is It?

2017-08-18 13:04:02
9 Things You Need to Know About a Home Appraisal

2017-08-17 13:45:37
Safety Cheecklist When Selling Your Home

2017-08-15 14:29:50
How Radon Enters Your Home

2017-07-19 13:38:52
Top 10 Mistakes Sellers Make When Choosing a Realtor

2017-07-17 14:34:27
The Real Cost of Owning a Home - Buy or Rent?

2017-06-28 15:17:41
4 Costs You Haven't Factored Into Your Homebuying Budget

2017-06-27 15:31:29
If You Plan To Offer Seller Financing: 3 Things You Need to Know

2017-06-26 15:23:10
Buying Your First Home: What to Do and When to Do It

2017-06-23 15:04:39
7 Reasons to Work With a REALTOR®

2017-06-20 15:43:56
4 Reasons To List Your Home For Sale This Summer

2017-06-13 11:10:02
11 Reasons Your Home is Not Selling

2017-06-01 14:23:04
Why Do New Sales Associates Fail?

2017-02-02 14:29:16
ColorThat Help or Hurt Your Home's Selling Price

2017-01-03 13:11:56
FreddieMac New Year, New Home

Click here to see ALL articles.


Comment on this Article

Your Name:
Your Email:
Comments:
Verify:  Please enter the numbers shown to help eliminate spam.