Water Rights vs. Water Shares in Fairview, Utah: What Buyers Should Know

When you shop for land or a home with acreage around Fairview, you'll see "water rights" and "water shares" in a lot of listings. They sound alike, but they're two different things. Knowing the difference can save you a headache, and sometimes a lot of money.

What is a water right?

A water right is permission from the State of Utah to use a set amount of water for a certain purpose, like watering a field or running a home. The Utah Division of Water Rights keeps track of every one, and each right has its own number. In Utah, a water right counts as real property, much like the land itself.

Here are a few things to know:

• Older rights come first. Every right has a priority date. In a dry year, the older rights get their water first.
• Use it or lose it. If a water right goes unused for seven years, it can be forfeited.
• It doesn't automatically go with the land. Water rights can be sold separately from the land. When they do go with it, the deed should list the water right number. The sale is also reported to the state on a Report of Water Right Conveyance.

What is a water share?

A water share is stock in an irrigation company. The company owns the actual water right, and each share gives you a portion of that company's water. Around Fairview, that usually means irrigation water for fields and pasture. Many companies deliver water in turns, and the more shares you own, the longer your turn.

Water shares follow the irrigation company's own rules:

• Shares are transferred through the company, following its bylaws.
• Most companies charge a yearly fee for each share.
• If you want to use the water somewhere outside the company's area, the company has to approve it.

Quick comparison

What to check before you buy

• Ask exactly what water comes with the property: rights, shares, or both, and how much.
• For a water right, get the water right number and confirm it's in the seller's name with the county recorder.
• For shares, find out which irrigation company it is, what the yearly fee is, and how turns work.
• Ask whether the water has been used recently.
• Make sure the water is spelled out in the purchase contract and the deed.

Water is one of the biggest parts of a property's value around here. If you're looking at a Fairview property with water, give me a call. I'm happy to walk through what comes with it and who to talk to before you buy. You can also see every Fairview home, cabin and piece of land for sale with water rights or shares.

This article is general information, not legal advice. For questions about a specific water right, talk with a title company or a water rights attorney.

– Sadie Wake, Aspen Leaf Realty