When you buy property, you’re buying a piece of land. But in Oregon, what truly determines that land’s potential, value, and future is something you can’t always see: the right to use water.
For a large-scale developer planning a new subdivision, the need for a secure water supply is obvious. But the truth is, the very same principles and risks apply to a family buying their dream home on a two-acre lot. Ignoring water rights due diligence can turn a dream into a nightmare of unexpected costs, legal battles, and a property that can’t be used as you intended.
Whether you’re building a community or planting a garden, understanding your property’s water situation is non-negotiable.
For the Developer: Building on a Solid Foundation
For real estate developers, water is a foundational element of project feasibility. Every phase, from initial land acquisition to final plat approval, hinges on securing a legally sound and adequate water supply. Key considerations include:
- Water Rights Due Diligence: Before purchase, a developer must verify the validity and quantity of existing water rights. Is there enough “wet” water to serve 100 new homes? Are there hidden risks, like a history of non-use that could lead to forfeiture? A professional Due Diligence Report is the only way to get a certain answer.
- New Water Right Applications: If a property has insufficient water, a developer must navigate the complex OWRD process of applying for new rights. This is a long-term strategic process that can make or break a project’s timeline and budget.
- Land Division and Transfers: When a large parcel with a single water right is subdivided, that right must be legally divided and transferred to the new lots. A failure to do this correctly can create a title cloud over every property in the development, a major headache for future sales.
For the Homeowner & Buyer: Protecting Your Dream
You might not be building a subdivision, but the stakes are just as high for your personal property. The principles that apply to a large developer are the same ones that will protect your family’s home and investment.
Here’s how those “developer” issues apply directly to you:
- Is the Water Right for the Home You’re Buying Valid?
That charming farmhouse with the beautiful pasture is only charming if you can legally irrigate it. A buyer must perform the same due diligence as a developer. You need to confirm the seller’s water right is in good standing and hasn’t been forfeited. Otherwise, you could be buying a property with a lawn that’s destined to turn brown. - Can You Legally Use Water for Your Plans?
You want to plant a large garden, add a guesthouse, or build a workshop. These plans may require more water than the property’s current “exempt” domestic use allows. Just like a developer, you may need to file for a new water right application to ensure your project is legal. Simply drilling a well without the proper permits can lead to significant penalties. - What if You Want to Sell Part of Your Land?
Imagine you own 10 acres and want to sell off a 5-acre parcel to your children or a neighbor. This is a form of land division. If you don’t legally split the water right through a formal transfer process, you can create serious legal and financial problems for both yourself and the new owner.
The Universal Truth: Every Buyer Needs an Expert
Water rights are an invisible but fundamental layer of every real estate transaction in Oregon. They are a property right, just like the land itself, and require the same level of professional scrutiny.
Whether you’re a developer assessing a multi-million dollar project or a homebuyer making the biggest purchase of your life, you cannot afford to make assumptions. The only way to be certain is to seek professional help.