Requirements to drill a well

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nikotromus
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Requirements to drill a well

Post by nikotromus » Tue Nov 28, 2017 10:17 am

Hi Guys,

I'm hoping the answer to this isn't too complex. If you own 5,000 square meters of land or more, do you have the right to drill a well for personal use, or do you need to have water rights and/or other special permission to do it? If the area of Chile matters, it's near Santa Cruz.

Thanks in advance!

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Re: Requirements to drill a well

Post by admin » Tue Nov 28, 2017 11:13 am

You have to water rights.

Near santa cruz, you really really have to have water rights. There have been instances of violence in that area over water.
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Re: Requirements to drill a well

Post by admin » Tue Nov 28, 2017 11:14 am

In fact, in that area if you buy property without water rights attached to it, the land is pretty much worthless.
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Re: Requirements to drill a well

Post by admin » Tue Nov 28, 2017 11:21 am

You really don't want to run afoul of the water rights of one of those big vineyards or orchards. They got lawyers, lots of them, that do little more than protect their water rights. It could quickly become the most expensive glass of water you ever drank.
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nikotromus
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Re: Requirements to drill a well

Post by nikotromus » Tue Nov 28, 2017 7:02 pm

Thanks!

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GringoVikingo
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Re: Requirements to drill a well

Post by GringoVikingo » Tue Nov 28, 2017 7:14 pm

Stay far away from area producing Palta/Avocado it suck water and already baned by many European country
Not only do I not know what's going on, I wouldn't know what to do about it if I did.
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nikotromus
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Re: Requirements to drill a well

Post by nikotromus » Tue Nov 28, 2017 7:57 pm

admin wrote:
Tue Nov 28, 2017 11:14 am
In fact, in that area if you buy property without water rights attached to it, the land is pretty much worthless.
Admin, just to clarify, and I apologize in advance if this is annoying. You are saying that to drill a well in Chile, even if it's for domestic use only for the purposes of single family home (not for agriculture), water rights on the land is required. Correcto?

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eeuunikkeiexpat
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Re: Requirements to drill a well

Post by eeuunikkeiexpat » Tue Nov 28, 2017 9:08 pm

Dude, location, location, location, and what IS Santa Cruz??????

Different strokes at diiferent locs...

Pero es obvio po...

Way it is
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nikotromus
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Re: Requirements to drill a well

Post by nikotromus » Tue Nov 28, 2017 9:39 pm

Yah - Just trying to research if there is a difference between personal use and agricultural use. I can see that water rights are classified as mining, agricultural and personal, so maybe that answers the question.

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Re: Requirements to drill a well

Post by admin » Wed Nov 29, 2017 8:54 am

you mess with the water table, you need water rights. Especially in what is essentially a dessert, and one of the most important agro regions in the country / World.

This goes beyond drilling.

You want to take a bucket of water out of creek, and then dump it back in, you need water rights (pass through water rights). All those pass-through hydro dams tucked away in the mountains, have to have water rights for that use. Same goes with the little farmer that wants to irrigate his crops, or simply dig a hand dug well for a the family.

Now, obviously, the importance of water rights and how policed they are, will depend on the region. Down south, lot's of rain, there are plenty of unregistered, hand-dug wells and such; but, even in the south with lot's of rain, every year more and more people are registering water rights due to the recent droughts and so on (obviously not this year).

Around the Talca, Santa cruz, central growing regions, you see canals running everywhere. Those are under very specific, and very complex, sets of laws. Just because one runs across your property, does not mean you can touch the water.

Water rights are registered in a completely separate "property registry". You can sell a property, and sell the water rights separate. Mining rights are also on a separate "property" registry. They are done typically in two different contracts. Typically water rights do not even show-up on the property title. We have to do a specialized title search on water rights in the areas where it is super important to have those water rights, such as around Santa cruz.

For example, we have a client that bought 10 hectares many years ago outside of Santa Cruz. It came with water rights to the canal that runs past the property (think it was 5 shares or something of the local water rural water association), she has never had a problem renting that property to a farmer that grows corn on the property because she has water rights. She makes like 3 million a year in rent off the property.

I have another friend, just north of Santa Cruz, that recently bought a house. Sits on two lots, 1 hectare total. She picked up the house from an old lady that had to sell, for like 120 million pesos. Now, that house (needed renovation) + land, is really only worth about 80 million pesos (you could buy the lot next door, and build a new house for about 80 million pesos).The property came with 3 shares of the local canal, making the property work north of 250 million pesos. She could sell the water rights separate from the property, as the house + garden, really only needs about 1 share (can't recall the liters per min, but it is more than sufficient for a property that size).

vs.

Down south, I own properties, with deep community wells (100+ meters), that are totally unregistered. Don't recommend people try this at home, but it is done. Down south, typically the main reason to register water rights, is to claim an exclusion zone from other people drilling wells near your well. Depending on the size of the property, that exclusion zone is simply not needed as no one would be able to get anywhere near your well anyway.

I always like how one of our surveyors down in the Patagonia once put it. When you buy property in Chile, you basically own one meter above the ground, and one meter below the ground. Rights to water, mining, even cutting the large trees (well, lot's of large trees), is a separate set of legal rights / regulations.
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Re: Requirements to drill a well

Post by admin » Wed Nov 29, 2017 8:58 am

By the way, it is an old scam in the central regions. Sell your water rights, then find some dumb gringo to buy the land that does not know that they need to have water rights.

Also, they are starting to crack down on parcels lots in the raw, without water rights or water system. Even more, they are starting to enforce having health permits for the parcelations entire water systems, to even qualify for obtaining building permits; which typically means they need to have water rights, a registered well, tanks, water treatment system, and so on. You can't just build say 300 houses in the middle of corn field, without providing for the infrastructure.
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
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Re: Requirements to drill a well

Post by nikotromus » Wed Nov 29, 2017 9:45 am

+ 1,000,000!!!!

Buying property with a lawyer in Chile is so foreign to foreigner. But, after immersing myself in the hunt for some time and discovering all these mine fields and reading stories of people losing everything and actually meeting someone in real life who lost lots of money to a real estate scam here --> I couldn't imagine doing the transaction without trusted representation.

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