Why must new owners pay membership fees that previous owners failed to pay? When someone buys a platted lot in Cripple Creek Mountain Estates, the person who buys the lot automatically acquires the prior owner's membership (if it hasn’t been forfeited) -- together with any outstanding obligations attached to that membership -- in MMWC. See C.R.S. § 7-42-104(4) (providing that the shares of stock in a ditch company "shall be ... transferable ... in the manner provided by the bylaws); MMWC Bylaws, Art. V, Section 2 (providing for automatic transfer of membership upon sale of a platted lot in CCME). However, the transfer of a membership from one owner to the next does not expunge the fees owed by that membership.  State law gives mutual ditch companies a "perpetual lien" against the membership -- not the lot itself -- for any and all charges owed.  See C.R.S. § 7-42-104(3) ("[S]uch corporation shall have a perpetual lien upon such shares of stock and the water rights represented by the same for any and all such assessments until the same are fully paid.  Such corporation may also provide that no water shall be delivered until all assessments are paid").  If those fees are not paid by the new owner, MMWC can avail itself of a number of legal remedies, including refusing to provide water or water service, suit for payment of delinquent fees, and/or forfeiture of the membership.  See Delinquencies page. Moreover, the lien against the membership survives a tax sale or foreclosure proceeding.  This is because the property rights a buyer acquires in a lot are separate from the connection rights associated with a membership.  See C.R.S. § 7-42-104(4) (providing that the shares of stock in a ditch company "shall be deemed personal property"). If a prospective buyer of a CCME lot retains the services of a responsible title company, the title company will contact MMWC to find out if any outstanding fees are owed.  If a prospective buyer chooses not to retain the services of a title company, it is incumbent on that buyer to do his or her own due diligence. Copyright © 2009-2011 MMWC Director Eric W. Cernyar