Property Ownership
Under Oregon water law, a homeowner can lose their water right if:
AThey change the water's use from agricultural to residential
BThey fail to put the water to beneficial use for a period of 5 consecutive years✓ Correct
CTheir well exceeds the maximum permitted depth
DThey sell the property without transferring the water right
Explanation
Under Oregon's prior appropriation doctrine, a water right can be forfeited if the holder fails to put the water to beneficial use for 5 consecutive years. Water rights in Oregon are use-based — they must be actively used to be maintained.
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Key Terms to Know
Fee Simple
The highest and most complete form of property ownership — absolute ownership with the right to use, sell, or pass the property to heirs.
Joint TenancyCo-ownership where two or more people hold equal, undivided interests with the right of survivorship — when one owner dies, their share passes to the surviving owners.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
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