What to verify when buying land in SW CO

[bluumoon]

Signed a contract on a lot here is SW CO this morning and now have a few weeks for due diligence/inspections. The 4.5 acre lot is in a development that was parceled out more than 20 years ago, but only recently being developed. Our course the #1 concern is water, seller has not applied for well permits for any of the undeveloped lots, the two developed lots do have wells. As I read over things yesterday, it does not appear that I can apply for a well permit until the lot is in my name and the best answer the water board can give you is a "maybe" when they look at the lot info prior to applying for permit. Lot does have 8.2 acre/ft of project water deeded to it, but not sure what/if anything I can do with the project water when it is available.

#2 concern is gas/mineral rights. Seller will have to disclose what he has, but what else can I do to make sure I won't lose any of my lot to gas wells or something? There are two areas designated in the HOA common areas for gas wells already, with their own access right of ways.

Separate question anyone ever owner contract a kit/prefab house? I know lining up subs in my area are the biggest hurdle. Labor costs are high here, so having a house shell prebuilt and dried in/assembled in a few days after delivery seen to make sense to me.

 

[def90]

Can pretty much guarantee you that you will not have any mineral rights and there is a very good chance you do not have water rights, the developer of the land is going to be holding on to those if they even have them themselves. Verify the water thing before you sign off on anything, the last thig you want to be doing is trucking water in to fill a cistern every week.

 

[Seth]

^^^^ this is very true. Even if it has some shares in a ditch, you are likely limited in when/where you can irrigate. I’ve seen too many beautiful homes that have to haul water. Even with a well, there’s no guarantee it is good water.

If there is no driveway established, check with the county on the ability to obtain a permit for installation.

If in San Juan Basin Public Health’s jurisdiction, plan on spending a bundle for your engineered septic system. Most I have seen are way over designed and quite costly.

 

[fmyth]

Did you use a local buyers agent with knowledge of the area to represent you?

 

[Corey Paulsen (teamkabob)]

Get it in the contract about the well.

 

[Scoutman]

What has been said is all very good. When I bought my place in 2018, I was told water rights should cost me 10k, well I'm over 20k and finally got it registered. My will is gonna run me 13k just to drill without a pump about $100 ft. Be prepared for more beauracy than you've ever encountered before in regards to water and water rights. Mineral rights are probably long gone but who knows. Consult a water attorney, worth a consultation cost if it gets complicated and it probably will. We love our place in Colorado just wish it was not a liberal controlled governing body on everything you do.

Sent from my Pixel 2 XL using Tapatalk

 

[bluumoon]

Thanks for the replies guys, I am in the San Juan Basin. Thanks for the heads up on the driveway. Going to request a perc test, but I've heard you frequently are required to have an engineered system.

I'm certain mineral rights are not included, was told not to expect them in this area. I guess my question is in CO if you don't have surface rights, can you lose your surface rights after home and barns and such are constructed.

The water shares are deeded, but it is" project water". Owner was forthcoming in saying you don't get the project water very frequently. I'm assigning no value/use to the project water, just curious what it is actually used for.

So about the well.... Anyone have experience getting a non exempt well permit (house hold use only) in the San Juan Basin? There is no well permit being conveyed... I'm thinking maybe saying that I won't pass inspection until permit is secured? Permit application is only $100. Sure as hell don't want to haul water.

 

[AZ8]

Highly doubt on the mineral/water rights. I purchased land here Arizona years ago and it was clearly stated in the contract I have no mineral/water rights. Not even the developer that purchased the land owns it. The original owner still retains those rights. We have a community well on our site tho.

There’s an old saying out here: In the West, water flows uphill to money.

 

[def90]

Thanks for the replies guys, I am in the San Juan Basin. Thanks for the heads up on the driveway. Going to request a perc test, but I've heard you frequently are required to have an engineered system.

I'm certain mineral rights are not included, was told not to expect them in this area. I guess my question is in CO if you don't have surface rights, can you lose your surface rights after home and barns and such are constructed.

The water shares are deeded, but it is" project water". Owner was forthcoming in saying you don't get the project water very frequently. I'm assigning no value/use to the project water, just curious what it is actually used for.

So about the well.... Anyone have experience getting a non exempt well permit (house hold use only) in the San Juan Basin? There is no well permit being conveyed... I'm thinking maybe saying that I won't pass inspection until permit is secured? Permit application is only $100. Sure as hell don't want to haul water.

If they already have a drill pad on HOA ground they aren't going to come on to your property, they will just drill horizontally to get at what is under it.

"project water" sounds like an irrigation ditch that you are allowed to draw a certain amount of water off of when your time slot allows it and it is running. Basically only good for irrigating.

Water rights have been all tied up in Colorado for well over 100 years, you can't even catch rain water from your roof as it belongs to someone else, if they aren't part of your property and you need a well you will probably need to find out who owns the water rights on your land and then negotiate a well and water rate with them.. or get a cistern.

I would talk to the couple homes in the development that have wells and get the details direct from them.