Two ranches with the same acres can be completely different operations once you look at the water and the leases. These are the things worth checking before you close.
Montana is a prior appropriation state
Montana water law runs on "first in time, first in right." A water right's priority date matters as much as the right itself. In a short year, older (senior) rights are filled before newer (junior) ones. A ranch can have water rights on paper that don't deliver in a dry year if they are junior on a busy source.
Read the water right abstracts
Water rights in Montana are on file with the Department of Natural Resources and Conservation (DNRC). The abstract shows the priority date, purpose, place of use and flow rate or volume. Ask to see the abstracts for every right being conveyed, not just a promise that "the place has good water." When a property sells, ownership of the water rights is updated with DNRC, using Form 608 when an entire right changes hands.
Deeded water rights vs. ditch company shares
Some irrigated ground has its own water right. Other places get water through shares in a ditch company or irrigation district, which come with their own bylaws and transfer process. They don't work the same way. Find out early which one applies.
Grazing leases don't always go with the land
If a listing includes leased grazing, find out whether the lease transfers to a new owner, needs agency approval, or stays with the current lessee. Federal grazing permits (BLM and Forest Service) go through the managing agency's transfer process, and approval isn't automatic. State trust land leases are handled by DNRC. Private leases depend on their own terms.
Three landlords, three rule books
BLM and Forest Service permits come with their own AUM (animal unit month) numbers and conditions. Montana state trust leases are a separate state system with their own rules. None of them work like a private lease. Know what each one requires before you count leased acres as part of the deal.
Minerals can be split from the surface
In the West, mineral rights have often been severed from the surface at some point. It may not change your plans for the place, but it is a title question to ask and get answered before closing.
Bring in the right people
On any ranch where water matters, that means a title company, a real estate attorney and a water rights specialist. My job is to make sure the right questions get asked early and to chase down what's missing. Their job is the legal opinion.
This article is general information, not legal, tax, water-rights or appraisal advice. Rules change; confirm current requirements with the agency or a qualified professional for your property.
