Form 488 (Rtc) - Transfer Certificate (Page 2 of 5) in pdf

WATER RIGHT DISCLOSURE INFORMATION

The Water Right Disclosure is required by Montana Law. Legislators decided it is important for both the

buyer and seller of property to know what the water right situation is — whether any water rights exist,

and whether they are being transferred with or withheld from the property.

A water right is a legally protected right to beneficially use water in priority that was obtained in accor-

dance with Montana law. Buyers should be careful to investigate whether water being used on a piece

of property amounts to a valid water right, or is merely an unauthorized and unprotectable use of water.

In Montana all irrigation water rights must have a valid DNRC water right number to be of record.

However, existing rights for livestock and individual domestic, as opposed to municipal uses, based on

an instream flow or groundwater source before July 1, 1973, do not need a DNRC water right number.

If a water right does not have a DNRC number, and does not fall within the above narrow exception,

then there is no water right.

Once the water rights appurtenant to a piece of property have been identified, the investigation of water

right should not stop there. Although a water right may have a valid DNRC water right number, it may

still be subject to final adjudication in Montana’s general stream adjudication. The Montana Water

Court is currently adjudicating all Statements of Claim for pre-July 1, 1973, water rights. How good a

water right is depends on how it comes out of the adjudication, and how its priority compares to other

water rights on a source of supply. You may need to consult an attorney or water rights consultant for

an opinion as to the status of that water right. The Montana Water Court can answer questions about

the current status of Statements of Claim being adjudicated by calling 1-800-624-3270 (in state) or

406-586-4364.

If there are water rights which have been historically used on the property being transferred, but are not

going to be transferred in the sale of land, the deed must specifically reserve those water rights. Other

-wise, if the deed is silent, the water rights automatically pass with the land by operation of law.

The following descriptions may be of some help in determining which box to mark in Part 6, Water

Rights Disclosure. If further assistance is needed, you may want to seek legal advice.

Grantor property has water rights and all water rights transfer means there are water rights

used at the property and all the water rights transfer with the property.

Grantor property has water rights but seller has reserved them so no water rights transfer

means there are water rights used at the property, but the seller is not going to transfer any of the

rights with the property. Note: The water rights not transferring with the land must be specifically

reserved in the deed.

Grantor property has water rights but not all water rights transfer means there are water rights

used at the property, but the seller is going to transfer some, but not all, of the water rights with the

property. Note: The water rights not transferring with the land must be specifically reserved in the

deed.

Grantor property has no water rights of record with the Department of Natural Resources &

Conservation (DNRC) means there may not be any water used at the property. It may also mean

water is used, but the rights are not on record with the DNRC. Existing rights for livestock and

individual domestic, as opposed to municipal uses, based on an instream flow or groundwater source

appropriated before July 1, 1973, can legally exist without being on record with the DNRC.

Contact the DNRC for information if water is used on the property other than described above.

NOTE: The seller is exempt from the Water Rights Disclosure requirement only if the property is served

by a public service water supply or the deed was in escrow prior to January 1, 1998. If your circum-

stances meet these exceptions, you only need to check the appropriate box on the disclosure . NO

signature is required.

Form 488 (Rtc) - Transfer Certificate Page 2

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