Dam Transfer of Ownership
If you are considering selling or buying a property which includes a dam, notify your real estate agent early in the transfer process. Realtors, attorneys, and lenders are required by law to advise clients of these requirements. If dam transfer requirements are not met, the real estate transaction may be voided.
Department authorization is required to transfer ownership of dams, of any size, on navigable and non-navigable streams. In general, both the seller of the property on which a dam is located and the buyer of the property must cooperate to complete a dam transfer application. Two of the application requirements are an inspection and proof of financial capability. In addition, if the dam is on a navigable waterway, the dam transfer application requires a 30-day public notice and potential for a public hearing prior to a permit being issued. The public notice process is not required for transfer applications on non-navigable streams. Note that navigability determinations are defined by today’s standards rather than at the time of original dam construction.
A field inspection by a Professional Engineer is required for a dam transfer application and is the responsibility of the applicants (seller and/or buyer). The field inspection is intended to document repairs needed to bring the dam into compliance with safety standards, identify maintenance tasks necessary for dam upkeep, and review required compliance elements per Ch. 31, Wis. Stats., and NR 333, Wis. Admin. Code. A field inspection report will need to be submitted as part of a complete transfer application to the Department.
The buyer of the dam must show financial capability to maintain the dam for at least 10 years. The financial capability is based on the inspection by the Professional Engineer and includes estimated costs of ongoing maintenance, necessary repairs, and incomplete compliance elements identified during the inspection and an estimate of damages due to flood events. Responsibility for the repairs may be negotiated between the buyer and seller. Generally, repairs needed to bring the dam into compliance with safety standards shall be completed prior to the transfer. In some situations, arrangements can be made to complete repairs during or after the transfer as long as the repair costs are included as part of the financial capability determination. The Department will review the estimates to ensure that sufficient financial capability is being demonstrated. Financial capability must be demonstrated in a proper legal manner – common types of financial guarantees include escrow accounts, surety bonds, or irrevocable letters of credit.
State regulations limit who can assume ownership of a dam. Under Ch. 31, Wis. Stats., lake districts formed under Ch. 33, Wis. Stats., have been considered municipalities. Ownership of a dam can be transferred from:
- Private individual to another private individual;
- Private individual to a municipality; or
- Municipality to another municipality.
Under no circumstances may a foreign corporation assume ownership of a dam nor may a dam be transferred from municipal ownership to private ownership.
Contact your Wisconsin DNR regional water management specialist for information about navigability. Contact your Wisconsin DNR regional water management engineer for more information about the transfer application process.
Exemptions and permits
- Dams that supply water to a cranberry operation are exempted from state regulations regarding the transfer of ownership.
- To view the application checklist and/or apply for a transfer of ownership permit, go to the following link: Water permits - Select "Dams," then find the activity "Transfer of Ownership," then "Begin IP application."
Laws
Applicable statutes and codes include Chapter 31, Wis. Stats., Chapter NR 333, Wis. Adm. Code and Ch. NR 710, Wis. Adm. Code.
Local Permits and U.S. Army Corps of Engineers regulations may also apply. We advise you to contact your local zoning office and your regional U.S. Army Corps of Engineers Office.
Contact information
DNR Dam Safety
DNR Dam Safety Program, WT/3
101 S Webster St
PO Box 7921
Madison WI 53707–7921
