Final answer:
To transfer water stock to a buyer of real property, the stock needs to be endorsed by the seller. This process does not occur automatically with the recordation of the deed. Local laws and additional steps may also be involved in the transfer of water rights.
Step-by-step explanation:
To transfer water stock to the buyer of real property, the correct option from the ones listed is that the stock needs to be endorsed. Unlike certain other rights that may be automatically transferred with the sale of real property, the transfer of water or shares of water stock associated with land often requires an endorsement. This means the seller signs the back of the stock certificate, indicating the transfer of ownership to the buyer.
This procedure is similar to the transfer of stock in a corporation. However, it does not happen automatically with the recordation of the deed to the property.
Note that local laws and practices can vary, and sometimes additional steps, such as notifying the State Engineer or transferring rights through a new certificate, may be necessary or recommended. The exact requirements can depend on the location of the property and the specifics of the water rights involved.
Therefore, consulting with a local attorney or water rights expert is advisable to ensure proper compliance with all local regulations and procedures for transferring water rights.