How is stock in a mutual water company related to the property?

Stock in a mutual water company is considered appurtenant to the land, meaning it is tied to the property itself and not easily separated from it. When a property owner holds stock in such a company, it typically grants them access to water services necessary for their property. This relationship signifies that ownership of the stock is generally transferred along with the sale of the property.

The nature of appurtenant rights means that when a property is sold, the rights associated with the mutual water company, including the stock, typically pass to the new owner, ensuring that they continue to have access to the water services. This connection emphasizes the importance of mutual water company stock as part of the property’s value, as it directly affects the property’s utility and livability.

In contrast, stocks being sold separately, not being related, or being independently inheritable do not accurately reflect how the stock functions in relation to real estate in this context. Rather, the appurtenant nature of the stock is critical for providing ongoing water service, making it an integral component of property ownership in areas served by mutual water companies.