What is Water Stock?
South Mesa Water Company is a mutual water company and a corporation. Our customers are shareholders in the corporation and are issued stock certificates which entitle them to their right to water. Our corporate by-laws state that each water meter and/or parcel must have one share of water stock. This water stock is made appurtenant to the land and must remain with the land.
Transferring Water Stock
A water stock certificate is a legal document that requires proper legal documentation to remove one party and add another.
When property is bought or sold and escrow is opened, the escrow company needs to be notified that there is water stock. The escrow company will then send us a request for a demand. We, in turn, will fax a transfer packet to include the stock transfer in the escrow. The items needed to complete the transfer are:
- The original Water Stock Certificate (we hold the original for newer stock certificates) or an Affidavit of Lost Certificate
- An Assignment of Stock Certificate or Trustee’s Deed Upon Sale
- A Letter of Instruction to Issue Water Stock Certificate
- A Pledgee release or Trustee’s Deed Upon Sale
- Executed copy of the Grant Deed
- A transfer fee of $100.00 per certificate to be re-issued
- Payment of the closing water bill
Lost Water Stock
Annually, on March 1st, an assessment of $50.00 is levied on each share of stock. This assessment maintains the assets of the Corporation. The assessment becomes delinquent on the 1 st Friday in September and subject to a 100% penalty. If the assessment and penalty are not paid by the 1 st Monday in November, the stock is forfeited to the Corporation and the property loses its right to water. The water stock must be re-purchased to restore water service to the property. At this time, water stock can be purchased from the Corporation at a cost of $1,500.00.