Property OwnershipIntermediateArizona Exam

In Arizona, a buyer purchasing property in a designated Active Management Area (AMA) should be aware that:

AThe property owner automatically acquires unlimited rights to pump any volume of groundwater beneath the property for any purpose under the common law rule of capture
BGroundwater rights may be subject to AMA regulations, and the property may require an assured 100-year water supplyCorrect
CAll water used on the property must be purchased from the state of Arizona at regulated prices, since private groundwater rights were abolished by the 1980 Groundwater Management Act
DGroundwater use for residential purposes is entirely unrestricted under Arizona law, since only commercial and agricultural uses of groundwater are subject to AMA regulation

Why Groundwater rights may be subject to AMA regulations, and the property may require an assured 100-year water supply Is Correct

Answer B: Groundwater rights may be subject to AMA regulations, and the property may require an assured 100-year water supply

In Arizona AMAs, new residential subdivisions must demonstrate an assured 100-year water supply before a plat can be approved. Buyers should investigate the water supply source and any restrictions on groundwater pumping.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

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