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DWE Home > Home > Water Management > Water access and trade > Transferring ownership of a water access licence

Water licensing and trading

Transferring ownership of a water access licence

A dealing that changes only the ownership of a water access licence occurs when you purchase both a property and the licence used to supply water to the property; or you purchase the licence only, with no change to the location for taking water under that licence.

If you want to use the licence at a new location within the water source, you will need to apply to change the zone and/or nominated work on the licence (see Changing the location where your water access licence can be used ).

A typical transfer dealing

Jill has a water access licence with a share component of 120 units and has a works approval for a pump. She wants to retire from the land and sell her irrigation farm (the water access licence included) to Bob. Bob wants to continue to run the farm as an irrigation enterprise. Once Jill and Bob have settled the sale of the farm and the licence, Bob will need to have the transfer of the ownership of the licence registered. There are no requirements to transfer the works approval as it goes automatically with the land sale.

Who do I contact?

Transfers of ownership is handled by Land and Property Information NSW (LPI). You should call LPI if you have any questions about registering a transfer.

Do I need consent from other people?

To register a transfer at LPI, the licence seller needs to provide the written consent of all holders of a registered security interest in the licence if they are not discharged at settlement. This may include mortgages and company charges held by a bank or other lending institution.

What should the buyer check?

Before deciding to purchase a water access licence, the buyer should undertake a number of searches to verify its details and status. Each of the organisations, DNR, State Water and LPI may charge fees for their searches.

Land and Property Information NSW

Through the Water Access Licence Register, a search can be undertaken to determine whether:

• the licence is of the category, location and share size required;
• the licence is current;
• the seller holds the licence and has the authority to sell it;
• the licence is linked to any water supply works; and
• there are any registered security interests, caveats etc on the licence.

Department of Natural Resources

The registers on this website can provide information on:

• licence conditions; and
• conditions and status of water supply work approvals.

State Water

State Water will provide information on the water account and fees that are likely to fall due, and any outstanding water charges. The new holder of the water access licence is liable for any outstanding annual water charges.

Will contracts need to be drawn up?

It is recommended that contracts be drawn up to cover the conditions of the transfer of ownership of the licence.

Who registers the transfer with LPI?

Once the purchase has been settled, it is the responsibility of the buyer (or the buyer's solicitor) to arrange for LPI to register the transfer. The buyers or their solicitors must lodge the following documents with LPI:

• LPI transfer form - W-O1T, with confirmation by the Office of State Revenue of payment of transaction duty (stamp duty);
• the current edition of the water access licence certificate;
• the notice of sale form; and
• all registered security interest consents (if these have not been discharged as part of the transfer).

It is in the interests of the buyer to have these documents lodged as soon as possible. A lodgement fee of $73.25 is charged by LPI to register the licence transfer and issue the next edition of the licence certificate.

When can the buyer extract water?

The seller may agree to allow the buyer to take water during the period between settlement and registration (the post-settlement period). The seller will need to provide the buyer with written authorisation. It is up to the buyer to lodge this authorisation with State Water (if the licence is on a regulated river system) or DNR. This authorisation does not entitle the buyer to sell the licence's water allocation to another licence holder or conduct other dealings during the post-settlement period.

When is the transfer complete?

The transfer of the water access licence is complete and becomes legally effective only when it is registered by LPI. Until this happens, the seller remains the holder of the licence.

After registration, LPI will issue the next edition of the water access licence certificate.

Note: This information does not constitute formal legal advice.