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The Shared Well Agreement form serves as a crucial document for property owners who rely on a common well for their water supply. This agreement outlines the responsibilities and rights of both the supplying party and the supplied party, ensuring clarity in the shared use of the well and its associated water distribution system. It includes detailed descriptions of the properties involved, referred to as Parcel 1 and Parcel 2, along with stipulations for the maintenance and operation of the well. The agreement emphasizes the necessity for both parties to contribute to the costs associated with the well's upkeep, including an annual fee and shared expenses for repairs and energy consumption. Furthermore, it establishes protocols for emergencies, easements for maintenance access, and the conditions under which the agreement can be terminated. By addressing these essential aspects, the Shared Well Agreement fosters a cooperative relationship between property owners, promoting the sustainable use of shared water resources while safeguarding their respective interests.
Shared Well Agreement Preview
Shared Well Water Agreement
This Agreement, made and entered into this ____day of __________ by and between
_____________________________, who resides at _____________________________
_____________________________ (street address, city, county, state, zip code), hereinafter
referred to as the "supplying party," and _____________________________, who resides at
__________________________________________________________ (street address, city,
county, state, zip code), hereafter referred to as the "supplied party:”
WHEREAS, the supplying party is the owner of property located at
__________________________________________________________ (street address, city,
county, state, zip code), which property is hereafter referred to as “Parcel 1” and is more fully described as follows:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
(Put Legal Description of Property Here)
WHEREAS, the supplied party is the owner of property located at
__________________________________________________________ (street address, city,
county, state, zip code), which property is hereafter referred to as “Parcel 2” and is more fully described as follows:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
(Put Legal Description of Property Here)
WHEREAS, the undersigned parties deem it necessary to provide a well system to service the parcels described herein, and an Agreement has been reached relative to supplying water from the well and sharing the cost of supplying said water; and
WHEREAS, there is located a well upon the above described property of supplying party; together with water distribution facilities, hereinafter referred to as "water distribution system", for the purpose of supplying water to all properties connected to the said water distribution system; and
WHEREAS, it is the intention and purpose of the undersigned parties that the well and water distribution system shall be used and operated to provide an adequate supply of water for each of the properties connected thereto, for the domestic consumption of the occupants of said properties, and to assure the continuous and satisfactory operation and maintenance of the well and water
distribution system for the benefit of the present and future owners, their heirs, successors and assigns of the properties connected thereto; and
WHEREAS, the said well is deemed by the parties hereto to be of adequate capacity to supply a single family dwelling on each of the parcels described herein with water from the well for all domestic uses of a single family residing therein; and
WHEREAS, the water from the well has undergone a water quality analysis from the State of
___________ health authority and has been determined by the authority to supply safe for human
consumption; and
WHEREAS, the parties hereto desire to enter this Agreement for the purpose of reducing to writing their respective rights and obligations pertaining to said well and water distribution system.
NOW THEREFORE, in consideration of the promises and covenants herein contained, it is agreed that the well and water distribution system situated on Parcel 1 shall be used by the parties to this Agreement, as well as by all future owners and occupants of said Parcels 1 and 2, upon the following terms and conditions:
1.That until this Agreement is terminated, as hereinafter provided, the parties hereto (and their heirs, successors and assigns, for the exclusive benefit of the respective parcels of said real estate, and for the exclusive use of the households residing thereon), are hereby granted the right in common with the other parties to this Agreement, to draw water from the well located on Parcel 1 for domestic use excluding the right to draw water to fill swimming pools of any type.
2.That the owners or residents of the dwellings located on Parcels 2, as of the date of this Agreement shall:
a.Pay or cause to be paid to the supplying party, an annual fee for this use of the well and water distribution system in the amount of $_____________ on or before the 15th of January each year, with the exception of this year whereby the amount shall be $____________ and paid on the execution of this Agreement.
b.Pay or cause to be paid promptly, a proportionate share of all expenses for the operation and maintenance of the well and water distribution system that may become necessary. Each respective share shall be determined by dividing the amount of each expense by two, it being understood that the supplying party and the supplied party shall pay an amount equal to one half of the total of such necessary repair or replacement. Shared expenses include the cost of electricity for pumping, repairs and maintenance on said well and water distribution system.
3.That the cost of any removal or replacement of
parcel necessary for system operation, maintenance, replacement, improvements, inspection or testing, damaged as a result of repair of the well or water distribution system maintenance will be borne by the owner of the affected parcel, except that costs to remove and replace common boundary fencing or walls damaged as a result of repair shall be shared equally between or among parties so damaged.
4.That each of the parties hereby agrees that they will promptly repair, maintain and replace all water pipes or mains serving their respective dwellings.
5.That the consent of all parties to pay a proportionate share of costs shall be obtained prior to embarking upon expenditures for system maintenance, replacement or improvement, except in emergency situations.
6.That the supplied party shall pay to the supplying party his proportionate share for the cost of energy for the operation of the pumping equipment. This cost shall be determined by a separate meter upon each dwelling and for each parcel.
7.That it is the agreement of the parties hereto that the payment for energy cost shall be made not later than the _________day of each succeeding month during the term of this Agreement. In the event that any such payment remains unpaid for a period of ____days, the supplying party may terminate the supply of water to the supplied party until all arrearages in payment are received by the supplying party.
8.That each of the parties to this Agreement does hereby grant to the other, his heirs, successors and assigns, such easements over, across and through the respective parcels as shall be reasonably necessary for the construction of the well, maintenance of water pipes, pumping equipment, mains, electrical wiring and conduit consistent with the purposes of this Agreement. These easements are described below, to wit:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
(Describe easements, if any)
10.That no party may install landscaping or improvements that will impair the use of said easements.
11.That each party shall have the right to act to correct an emergency situation and shall have access to the pertinent parcel in the absence of the other. An emergency situation shall be defined as
the failure of any shared portion of the system to deliver water upon demand.
12.That only those parcels of real estate hereinabove described and the dwellings located thereon shall be permitted to receive water from said well and pumping equipment; and each of the parties hereto does hereby covenant and agree that he/she will not allow or permit other persons, other than household guests, to take, draw, use or receive water from the well, nor permit other persons to connect to the pipes or mains serving his/her respective parcel.
13.That in the event the referenced well shall become contaminated and shall no longer supply
water suitable for domestic consumption, or shall no longer supply water adequate for the needs of all relevant parties, or in the event that another source of water shall become available to the respective parcels, then the rights and obligations of the parties created by this Agreement shall cease and terminate in accordance with the terms and conditions hereinafter described.
14.That upon the availability of such other source of water, it is contemplated that a reasonable time shall be allowed to effectuate the necessary connections to the new source.
15.That the respective rights and obligations of the parties shall continue until the parties who wish to terminate their participation in the Well Agreement have executed and filed a written statement of termination at the _____________________________ (office where deeds in your state are recorded) of the County of ____________ and the state of ____________________. Upon termination of participation in this Agreement, the owner and occupant of each residence which is terminated from the Agreement shall have no further right to the use of the well. The terminated parties shall disconnect their respective lateral connection from said well system and shall have no further obligation to pay or collect for maintenance and related expenses incurred thereafter. The costs of disconnection from the well and water system shall be borne by the owner of the pertinent parcel.
19.That the term of this Agreement shall be perpetual, except as herein limited.
20.That the benefits and burdens of this Agreement shall constitute a covenant running with the parcels of land herein described and shall be binding upon the heirs, successors in title and assigns of the parties hereto.
21. Any dispute under this Agreement shall be required to be resolved by binding arbitration |
of |
the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one |
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arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall |
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arbitrate said dispute. The arbitration shall be governed by the rules of the American |
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Arbitration Association then in force and effect. |
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Witness our signatures this the ____ day of __________, 20____. |
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__________________________________________________
(Acknowledgment before a notary public, the form of which will vary by state)
Common mistakes
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Incomplete Information: Failing to fill in all required fields, such as names, addresses, and dates, can lead to confusion and potential disputes later.
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Incorrect Property Descriptions: Not providing accurate legal descriptions of the properties involved can cause issues with ownership and rights to water usage.
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Missing Signatures: Forgetting to sign the agreement or to have it signed by all parties can render the document invalid.
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Ignoring Payment Terms: Not specifying the annual fee or payment schedule can lead to misunderstandings about financial obligations.
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Neglecting Emergency Procedures: Failing to outline what constitutes an emergency situation may leave parties unsure of how to act in critical moments.
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Omitting Easement Details: Not clearly describing easements can result in future disputes regarding access and maintenance responsibilities.
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Inadequate Termination Clauses: Not detailing the process for terminating the agreement can create confusion if one party wants to withdraw.
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Not Consulting Legal Advice: Filling out the form without seeking legal counsel may lead to overlooking important legal implications.
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Dos and Don'ts
When filling out the Shared Well Agreement form, it is important to follow certain guidelines to ensure clarity and compliance. Here are six key things to do and avoid:
- Do provide accurate and complete information for both parties, including full names and addresses.
- Do clearly describe the properties involved, including legal descriptions as required.
- Do ensure that all parties understand their rights and obligations regarding the well and water distribution system.
- Do review the terms of payment carefully, including deadlines and amounts owed.
- Don't omit any necessary details or legal descriptions, as this can lead to disputes later.
- Don't sign the agreement without confirming that all parties have agreed to the terms, especially regarding costs and maintenance responsibilities.
Misconceptions
Misconceptions about the Shared Well Agreement can lead to confusion and disputes among property owners. Here are nine common misunderstandings:
- It is only for homeowners. This agreement can apply to any property owner sharing a well, not just single-family homes.
- Signing means unlimited water access. The agreement specifies that water use is for domestic purposes only, excluding filling pools or other non-domestic uses.
- All costs are shared equally. While many expenses are split, some costs, like repairs to individual parcels, are the responsibility of the affected owner.
- Termination is easy. To terminate participation, a formal written statement must be filed, which can complicate the process.
- Water quality is guaranteed. While the water must pass a quality analysis, ongoing testing and maintenance are still necessary to ensure safety.
- Any landscaping is allowed. Landscaping or improvements that impair easements are prohibited, which can limit property modifications.
- Emergency access is unrestricted. While parties can access the property in emergencies, the definition of an emergency is specific and limited.
- Disputes are settled in court. The agreement mandates binding arbitration for disputes, which can be a faster and less formal resolution process.
- It lasts indefinitely without conditions. The agreement is perpetual but can terminate under specific conditions, such as contamination of the well.
Detailed Guide for Using Shared Well Agreement
Filling out the Shared Well Agreement form is a straightforward process that requires careful attention to detail. This agreement is important for defining the rights and responsibilities of the parties involved in sharing a well water system. Make sure to have all necessary information ready before you begin. Here’s how to complete the form step by step.
- Enter the date at the top of the form where it says “____ day of __________.”
- In the first blank space, write the name of the supplying party.
- Provide the supplying party’s full street address, including city, county, state, and zip code.
- In the next blank, write the name of the supplied party.
- Fill in the supplied party’s full street address, including city, county, state, and zip code.
- For Parcel 1, write the street address, city, county, state, and zip code of the supplying party’s property.
- In the next section, provide the legal description of Parcel 1.
- For Parcel 2, write the street address, city, county, state, and zip code of the supplied party’s property.
- Fill in the legal description of Parcel 2.
- Complete the section regarding the annual fee by writing the amount to be paid each year and the amount for the current year.
- Specify the due date for the annual fee, which is the 15th of January each year.
- Write down the details of shared expenses, including how they will be divided between the parties.
- Fill in the details regarding the removal or replacement of site improvements, specifying who will bear the costs.
- Both parties should agree to maintain and repair their respective water pipes or mains.
- Indicate how consent for expenditures will be obtained before maintenance or improvements.
- Fill in the payment details for energy costs, including the due date each month.
- Specify the number of days after which water supply can be terminated if payments are not made.
- Describe any easements necessary for the construction and maintenance of the well and water distribution system.
- Indicate that no landscaping or improvements can impair the use of easements.
- State the right of each party to correct emergency situations and access the pertinent parcel.
- Clarify that only designated parcels may receive water from the well.
- Outline the conditions under which the agreement may terminate, such as contamination or availability of another water source.
- Specify the process for disconnecting from the well system if a party terminates their participation.
- Write the date for signing the agreement.
- Leave space for signatures and notary acknowledgment at the bottom of the form.
After completing the form, both parties should review it carefully to ensure all information is accurate. Once everything is in order, sign the document and have it notarized as required. This will finalize the agreement and establish the terms for sharing the well water system.