B. Moss

How Texas Water Rights Shape Land Sales

When buying or selling land in Texas, understanding water rights is critical. These rights can dictate what the land can be used for, who has access to its water, and how the property’s value is assessed. Texas has a unique system that separates groundwater and surface water laws, making it essential for buyers and sellers to grasp the legal landscape before making any transactions.

 

Key Insights on Texas Water Rights and Land Sales

  • Two Types of Water Rights: Texas law distinguishes between groundwater (privately owned) and surface water (state-owned).
  • Groundwater Control: Property owners have the right to extract groundwater but may be subject to local regulations.
  • Surface Water Permits: Water from lakes, rivers, and streams is owned by the state, requiring permits for its use.
  • Impact on Property Value: The presence or absence of water rights significantly affects land prices and usability.

 

Texas Groundwater Rights: The Rule of Capture

Texas follows the Rule of Capture, meaning landowners can pump as much groundwater as they need, even if it depletes their neighbor’s well. However, some Groundwater Conservation Districts (GCDs) regulate water extraction to prevent overuse. Prospective buyers should check if the land falls under such a district, as these regulations may impact water availability.

 

Understanding Surface Water Ownership

Unlike groundwater, surface water is owned by the state, and individuals or businesses must apply for permits to use it. These permits, issued by the Texas Commission on Environmental Quality (TCEQ), define the amount of water that can be withdrawn and for what purpose. Importantly, surface water rights do not automatically transfer when land is sold—buyers must ensure these rights are legally assigned in the transaction.

 

Selling and Transferring Water Rights

Texas law allows water rights to be separated from the land and sold independently. This means:

  • Groundwater rights can be leased or sold apart from the land.
  • Surface water rights, once permitted, can be transferred to another entity under legal guidelines.

When purchasing land, it is crucial to verify whether these rights are intact, as their status can affect the property’s future use and value.

 

How Water Rights Influence Land Transactions

The availability of water rights can make or break a land deal. Land with secure, well-documented water rights tends to be more valuable, particularly for agricultural, industrial, or residential development. Properties with unclear or missing water rights may face restrictions that lower their market appeal. Buyers should always conduct due diligence to determine what rights come with the property.

 

Legal Considerations Before Buying Land

Before finalizing a land purchase, consider these key legal aspects:

  • Confirm whether groundwater rights are included in the sale.
  • Check if the land is subject to Groundwater Conservation District regulations.
  • Ensure any existing surface water permits are transferrable.
  • Consult a real estate attorney to clarify ownership and compliance issues.

A thorough legal review prevents surprises and ensures that the land meets the buyer’s needs.

 

Final Thoughts on Water Rights and Land Sales

Water rights are an integral part of land ownership in Texas. Whether buying or selling, understanding the distinction between groundwater and surface water is essential. Since these rights can significantly impact a property’s value and usage, thorough research and expert consultation are necessary for a smooth transaction. By clarifying water rights beforehand, buyers and sellers can make confident, informed decisions.

 

Frequently Asked Questions

Do water rights automatically transfer when buying land in Texas?

  • Groundwater rights usually transfer with the land unless they have been previously sold or leased. Surface water rights require separate legal inclusion in the sale.

Can water rights be sold separately from the land?

  • Yes, both groundwater and surface water rights can be sold independently, but state regulations apply to such transactions.

What role do Groundwater Conservation Districts play?

  • GCDs manage water usage in certain areas to prevent over-extraction. They may impose pumping limits and require landowners to obtain permits.

What should buyers check before purchasing land with water rights?

  • Buyers should verify legal ownership of water rights, check for restrictions, and ensure the rights align with their intended land use.

Are there recent legal changes affecting Texas water rights?

  • Water laws can evolve, making it important to stay updated on regulations that may impact property rights and usage. Consulting an attorney can help ensure compliance with the latest laws.

 

Table of Contents

Selling Concerns

What is the process for selling my land?

Our process is simple and easy. Just fill out our online form or give us a call. We will then schedule a time to view your property and make you an offer.

How much can I sell my land for?

The value of your land will depend on a number of factors such as its size, location, and condition. We will take careful consideration taking into account the market, location and features to provide a fair offer.

How long does it take to sell my land to you?

The value of your land will depend on a number of factors such as its size, location, and condition. We will take careful consideration taking into account the market, location and features to provide a fair offer. We can typically close on a deal within 30 days of receiving your signed contract.

Legal Concerns

What if one of the owners are deceased?

No worries. We are in the business of solving problems. We have worked with this issue on several occasions. Give us a call and we will work closely with you to fill in the appropriate documents to legally sell.

What if I owe a LOT of back taxes or have a lien on my property?

Not an issue. There is still value in your land. We will make you an offer and you will still leave the closing table with funds in your pocket. 

What if I don't have a copy of the deed?

This is not a concern. A deed is a legally recorded document. As long as the property was properly purchased, we can acquire a copy of the deed in the county records.

Closing Concerns

What is a title search and why is it important?

A title search is a process of investigating the ownership history of a property to identify any potential title defects. A title search is important to ensure that the seller has a clear title to the property and can legally sell the land. 

How much will I have to come out of pocket?

You will only leave the closing table with payment for your property. You will not pay for a survey (if one is required) and you will not be responsible for closing costs, which typically is required in a standard sale. We have you covered.

Do I need to be physically present in the city of the property to sell my property?

No, you have the option for an in person closing or a remote closing. You can come in person to the title office to sign the deed and receive payment directly or you can handle the closing remotely in which you will travel to a certified notary to sign necessary documents.

Yes! I'm Ready to Sell My Land

⚠︎ DISCLAIMER:

The contents of this blog are for informational purposes only and should not be taken as legal or tax advice. You should consult a licensed professional for advise on your specific situation. The information in this blog may be changed without notice and is not guaranteed to be complete, correct, or up-to-date. This blog is not intended to be a substitute for professional advice

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