Water Rights in Commercial Real Estate Sales: Jurisdictional Differences, Due Diligence Requirements, Key Provisions

Course Details
- smart_display Format
Live Online with Live Q&A
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Real Property - Transactions
- event Date
Thursday, August 28, 2025
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE webinar will examine the importance of performing water rights due diligence in commercial real estate sales transactions. The panel will look at key water rights doctrines and how these are implemented in various jurisdictions. The panel will address jurisdictional differences, looking at a sampling of states, and how these impact due diligence considerations. The panel will also discuss key provisions related to water rights to include in the purchase agreement.
Faculty

Ms. Bocci works on a range of transactional matters, including purchase and sale agreements, financing, and leasing. Her practice focuses on hotel and resort properties, commercial real estate assets, and agriculture/agribusiness matters. In the agriculture sector, Ms. Bocci has specific experience in matters relating to farmland real estate investments. She handles transactions across the country involving the purchase, sale, leasing and financing of farmland. Further, she is familiar with operational issues specific to the food packing and processing industry, including supply chain and labor arrangements. In addition, she also advises clients on agribusiness-related M&A transactions and regularly speaks and writes on agribusiness topics.

Mr. Ruttenberg's real estate practice includes negotiating and preparing documents relating to the financing, lease, sale, purchase and operation of income producing properties; the finance, acquisition, development and day-to-day operations for apartment and commercial-use complexes; landlord/tenant relations; commercial transactions with governmental agencies; and the redevelopment and preservation of historic structures. He is involved in assisting development clients with the purchase, sale or lease of groundwater and surface water rights, the development of diversion facilities, and other water development and water supply agreements. In general commercial law, Mr. Ruttenberg assists businesses with day-to-day operating needs, negotiating and drafting business contracts and business entities documentation for limited partnerships, limited liability companies, general partnerships, and corporations. He prepares intra-owner agreements for commercial entities of all types and the documentation in connection with the formation of investment capital. Mr. Ruttenberg is Vice Chair of the Business Law Section of the Texas State Bar.

Mr. Daugherty provides legal advice regarding water rights, water quality, and land use to municipalities, special districts, Indian tribes, universities, ditch companies, and private ranches, resorts, and landowners. He combines his private practice and public interest experience to navigate a rewarding practice that involves representation of both large and small entities in water rights matters across the country. Mr. Daugherty helps municipal water suppliers with complex integrated water systems protect and expand their water rights portfolios, public agencies navigate complex water quality regulations, private property owners understand their decreed and undecreed water rights, and ditch companies and private developers negotiate development-related agreements. He regularly appears before state and federal courts, agencies, and commissions regarding water rights and water quality and advises clients on federal, state, and local water-related regulation and administration.
Description
The term water rights refers to a property's legal access to a water source including a river, lake, or underground aquifer. In any commercial real estate sales transaction, understanding water rights tied to the property is critical because these rights affect the property's value and how the property may be used.
This is even more significant for businesses in certain industries such as manufacturing and agriculture that may rely heavily on water access. And given that water rights may not be insurable by title insurance, it is imperative that counsel understand due diligence requirements related to water rights and key provisions for purchase and sale agreements.
Key due diligence considerations include: (1) the extent of the water rights being conveyed in the transaction; (2) whether the available water supply will sufficiently fill business needs; (3) regulatory considerations such as any necessary permits, certifications, or environmental requirements; (4) maps/aerial photos or surveys of the property for any water features that may be on the property; and (5) in what manner water may be used on the property including whether/where it may be diverted.
Listen as our expert panel examines the importance of water rights due diligence in commercial real estate sales transactions. The panel will discuss water rights doctrines and how these are implemented in various jurisdictions and impact due diligence. The panel will also offer best practices for drafting contractual provisions related to water rights for the transaction.
Outline
I. Introduction: the importance of water rights in commercial real estate transactions
II. Water rights doctrines and due diligence impact
A. Riparian
B. Appropriation
C. Littoral
D. Groundwater
III. Due diligence considerations
A. Water rights conveyed as part of the transaction
B. Sufficiency of water supply
C. Regulatory concerns, permitting, certifications
D. Surveys
E. Title
F. Transferability and limitations
G. Other
IV. Key contractual provisions
V. Practitioner takeaways
Benefits
The panel will review these and other important issues:
- Why should counsel prioritize water rights due diligence in commercial real estate sales transactions?
- What are the main categories of water rights? How do these impact the type of due diligence to be conducted based on jurisdiction?
- What are important issues to be considered when performing due diligence related to water rights?
- What key provisions related to water rights should be included in the purchase agreement?
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