Delinquencies are not expunged by tax sale or foreclosure but rather transfer with the sale of the lot   By law, a membership in a mutual ditch or reservoir company is a form of personal property.  See C.R.S. § 7-42-104(4).  Because the lien is against personal property, not against the lot, it is not defeated by a tax sale or foreclosure on the lot. Memberships in MMWC are, however, automatically transferred with sale of the lot.  See MMWC By-Laws, at Art. V, § 2.  When a lot is transferred the unpaid charges of the prior owner are not "wiped out."  The charges remain due and owing, and can be collected from either the old or the new owner.  See MMWC By-Laws, at Art. V, § 2 ("Obligations of the transferring member for unpaid assessments, charges, or other debts owed to the Corporation, including any such assessments or other charges accrued prior to a sale of the Lot for unpaid real property taxes or other liens, shall remain unimpaired by the transfer of the Lot, or the Certificate and membership.").         Until all past due charges and amounts are paid -- whether by the old member or the new member -- the new member is not entitled to service.  See MMWC By- Laws, at Art. V, § 2 ("The Corporation shall not be obligated to supply water or water service to the new member until all obligations of the old member to the Corporation have been satisfied.  Until all assessments, charges, and other debts owed the Corporation are paid in full, the membership shall not be considered current or in good standing."). Copyright © 2009-2011 MMWC Director Eric W. Cernyar