Water Stock Transfer
What MDMWC's water stock is, when it must be transferred, and how the transfer process works.
Understanding Your Water Stock
Myoma Dunes Mutual Water Company (MDMWC) is a mutual water company and a corporation. Our customers are shareholders in the corporation and are issued stock certificates that entitle them to their right to water. MDMWC's corporate bylaws require that each account and/or parcel served by the Company hold one share of water stock.
This water stock is appurtenant to the land — it is legally attached to the property and must remain with it. Shares cannot be sold or transferred separately from the land they serve. Ownership is evidenced by a stock certificate issued by MDMWC.
To be entitled to receive water, a property's owner(s) of record must hold, in their own name, a share of MDMWC's capital stock, in accordance with Section 14300 of the Corporations Code of the State of California.
This same stock requirement is part of what's involved when new water service is established for a property — see our Water Service Setup page for details.
When Is a Stock Transfer Required?
Whenever a property served by MDMWC is bought, sold, or otherwise transferred, the water stock associated with that property must be transferred to the new owner. A property is not entitled to water service until all shares have been transferred into the new owner's name.
A stock transfer is required when:
- A property changes ownership through a standard sale
- A property is transferred between family members
- A legal name change occurs on title
- Ownership is transferred through inheritance, trust, or a personal representative's deed
How the Transfer Process Works
In most cases, the water stock transfer is handled as part of the standard real estate escrow process:
- When a property is bought or sold and escrow is opened, the escrow company must be notified that the property carries MDMWC water stock
- The escrow company contacts MDMWC to request a demand and the Company's final account statement
- A copy of the signed deed is required at the time escrow requests the final statement
- The buyer and seller each complete MDMWC's Water Stock Assignment / Transfer of Service forms
- Once the transfer is complete, MDMWC issues a new stock certificate in the name(s) of the new property owner(s), as they appear on the deed
It is the responsibility of the escrow company handling the transaction to contact MDMWC to process the transfer of shares through escrow. This ensures any outstanding balance on the account is collected and that the new owner has no issues establishing water service.
If Escrow Has Already Closed
If your escrow has already closed and the water stock was not transferred as part of that process, the new property owner is responsible for completing the transfer directly with MDMWC. This includes:
- Payment of the previous owner's closing bill, if it remains unpaid
- Account Establishment Fee & Stock Transfer Fee
- Completion of MDMWC's stock transfer paperwork & Application to Transfer Service
If you have sold your property and have not yet notified MDMWC, please call us at (760) 772-1967 so the stock can be transferred promptly.
A Note for Escrow Agents & Title Companies
All stockholders are reminded to file or attach their MDMWC Stock Certificate to their title of property. If you are an escrow agent or title company handling the sale or transfer of a property served by MDMWC, please contact our office as early as possible in the transaction to begin the stock transfer process and avoid delays in establishing water service for the new owner.
Questions about water stock, transfers, or escrow?
For questions about water stock, transfers, or escrow requirements, please contact us:
Fax — 760-772-0955 · 79-050 Avenue 42, Bermuda Dunes, CA 92203
Contact our office for the Water Stock Assignment / Transfer of Service forms.