Question 1

How do water rights affect Florida real property transactions?

Accepted Answer

Transaction impact: due diligence (the buyer should: verify the property’s water rights, check for existing CUPs and ERPs, confirm water access and quality, and review any water-related restrictions or obligations), title (water rights are: appurtenant to the land and transfer automatically; but: CUPs are permits that may: require transfer or reissuance), value (water rights: significantly affect property value; especially for: agricultural property (irrigation rights), waterfront property (access rights), and commercial property (water supply for operations)), and environmental (the buyer should: assess wetland presence, stormwater requirements, and environmental restrictions).

Question 2

What water rights issues should Florida buyers investigate?

Accepted Answer

Investigation: water supply (is the property: connected to a municipal water system or does it rely on a private well?), water quality (has the water been tested for: contaminants, bacteria, and other issues?), permits (are there: existing CUPs, ERPs, or other water permits?; are they transferable?), restrictions (are there: water use restrictions imposed by the water management district, local government, or deed restrictions?), and flood risk (is the property in a: FEMA flood zone?; what are the flood insurance requirements?). Due diligence: the buyer should: review all water-related permits and restrictions before closing.

Question 3

How are water rights transferred in Florida real estate sales?

Accepted Answer

FL transfer: automatic (riparian and groundwater rights: transfer automatically with the property; they are appurtenant to the land and do not need to be: separately conveyed). CUP transfer: the buyer must: notify the water management district of the transfer (the CUP may: transfer automatically with the property or may require: reissuance in the buyer’s name), comply with all conditions of the existing CUP, and in some cases: apply for a new CUP (if the buyer’s intended use differs from the existing permit). The closing agent: should include water rights in the title examination and address CUP transfer in the closing documents.

Water Rights in Real Property

FL Water Rights and Real Property

Transaction Impact

Investigation

Transfer

Related Terms

Barnes Walker Real Estate

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