A Shared Well Agreement form is a legally binding document between two or more property owners who agree to share the costs and responsibilities associated with a well that provides water to their properties. This agreement outlines the terms under which the well and water distribution system will be maintained, including the distribution of costs for operation, maintenance, and any necessary repairs or improvements. It ensures an adequate supply of water for domestic use to all parties involved, safeguarding their rights and obligations for present and future use.
Access to clean and consistent water supply remains a critical necessity for residential properties, especially those situated in rural or semi-rural areas where municipal water supply might not reach. The Shared Well Agreement form becomes a pivotal document in such scenarios, offering a structured and legally binding framework for two or more parties sharing a water well. This agreement meticulously outlines every aspect, from the supply party's property details to the supplied party's obligations, ensuring a clear understanding of rights, responsibilities, and restrictions. It delves into specifics such as usage rights, maintenance obligations, cost-sharing mechanisms, and procedures for emergency and non-emergency situations. Furthermore, it outlines conditions under which the agreement may be terminated, and how water from alternative sources may be integrated into the existing setup. Additionally, the document addresses the need for easements, ensuring the physical infrastructure of the water distribution system is legally supported. This agreement not only aims to secure a reliable water supply for the involved parties but also to uphold the continuous and satisfactory operation and maintenance of the well and distribution system. By doing so, it crucially supports domestic consumption needs while laying clear expectations for current and future property owners, their heirs, successors, and assigns.
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
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
county, state, zip code), which property is hereafter referred to as “Parcel 2” and is more fully described as follows:
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 pre-existing site improvements on an individual
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
arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall
arbitrate said dispute. The arbitration shall be governed by the rules of the American
Arbitration Association then in force and effect.
Witness our signatures this the ____ day of __________, 20____.
__________________________________________________
(Acknowledgment before a notary public, the form of which will vary by state)
Filling out a Shared Well Agreement form is a critical step for two or more parties wishing to legally share the responsibilities and benefits of a well system. This agreement outlines the terms under which the well's water will be supplied and how costs associated with the operation, maintenance, and necessary repairs are to be divided. Proper completion of this document ensures clear communication and understanding between parties, helping to prevent future disputes over the well's use and upkeep. Here are the steps to correctly fill out the form:
This step-by-step process will guide the involved parties through the intricacies of completing the Shared Well Agreement form. It’s essential to approach each step with attention to detail and mutual understanding, to ensure the agreement meets the needs and expectations of all involved. Once filled out, this document will serve as a binding contract that governs the relationship between the supplying and supplied parties regarding the shared well system.
What is a Shared Well Agreement?
A Shared Well Agreement is a legal document outlining the terms and conditions under which properties share a well system for water supply. This agreement specifies the responsibilities of each party regarding the use, maintenance, and financial contributions towards the well and the water distribution system. It ensures an adequate supply of water for domestic use to all the properties connected to the system and lays out provisions for emergency situations, use restrictions, and the handling of system repairs and maintenance costs.
Who needs to sign the Shared Well Agreement?
The Shared Well Agreement must be signed by the owners of the properties that will be sharing the well system, referred to as the "supplying party" and the "supplied party" in the document. This ensures that all parties involved have formally agreed to the terms set forth regarding the use, maintenance, and associated costs of the well and water distribution system. Additionally, the agreement must be acknowledged before a notary public to verify the authenticity of the signatures.
How are costs divided under a Shared Well Agreement?
Costs under a Shared Well Agreement are divided between the parties as follows: annual fees for well use, a proportionate share of all expenses related to the operation and maintenance of the well and water distribution system, and the cost of energy for pumping water. These expenses are split equally unless otherwise specified, ensuring that each party contributes to the upkeep and functioning of the shared water supply system. Emergency repairs or necessary improvements may require prior consent for expenditure, except in urgent situations.
What happens if the shared well can no longer provide adequate water?
If the shared well becomes contaminated or fails to supply adequate water for domestic consumption, or another water supply becomes available, the agreement outlines the steps to terminate the shared use. Parties wishing to terminate their participation must file a written statement of termination with the relevant office in their jurisdiction. Following termination, the involved parties must disconnect from the well system and will no longer be responsible for associated costs.
Is the Shared Well Agreement binding on future owners of the properties?
Yes, the benefits and burdens of the Shared Well Agreement constitute a covenant running with the land described in the agreement. This means it is binding upon the heirs, successors in title, and assigns of the parties who have signed the agreement. Future owners of the properties will be subject to the terms of the agreement, ensuring the continuous operation, maintenance, and cost-sharing of the well system beyond the original signatories.
When filling out a Shared Well Agreement form, attention to detail is crucial. Several common mistakes can lead to misunderstandings or legal complications down the line. Here are eight such errors to watch out for:
Not specifying the date clearly: The agreement kicks off with spaces to fill in the date. It's important not to overlook this, as an accurately filled date is essential for the contract to be enforceable and to establish when the terms begin.
Omitting full names and addresses: Both the supplying and supplied parties need to fill in their complete names and addresses. Skipping any part of this information can create confusion about who is responsible for adhering to the agreement's terms.
Neglecting the legal description of properties: Just including the address might not be enough. The agreement requires a legal description of Parcel 1 and Parcel 2. This description is critical for precisely identifying the land in legal terms.
Leaving financial terms blank: The agreement lists conditions regarding payments for well usage, maintenance, and other shared expenses. Failure to specify amounts or dates can lead to disputes over financial responsibilities.
Ignoring the quality analysis requirement: It mentions that the water from the well must be analyzed and deemed safe. Not conducting this analysis or failing to document the results can pose health risks and legal issues.
Forgetting to detail the easements: Easements allow one party to use another's property for a specific purpose, like water pipes or electrical wiring. Not clearly describing these can lead to disagreements about property use and access.
Overlooking the dispute resolution process: In case of disagreements, the document outlines a process for arbitration. Parties should clearly understand and agree upon this process to avoid confusion should a conflict arise.
Failure to have the agreement properly witnessed: The form requires signatures to be acknowledged before a notary public. Not following through with this step might question the document's validity.
Ensuring each of these areas is accurately completed can help prevent many common issues with Shared Well Agreements. Attention to detail will pave the way for a smoother relationship between the parties involved.
When entering into a Shared Well Agreement, various documents and forms are often necessary to ensure a comprehensive understanding and legal validation of the arrangement between parties. These supplementary documents not only reinforce the agreement but also provide clarity and legal protection for all involved. Understanding each document's purpose can significantly streamline the process and contribute to a smoother execution of the agreement.
These documents collectively support the terms laid out in the Shared Well Agreement, ensuring each aspect of the shared water supply system is legally documented and enforceable. By understanding the utility and requirement of each document, parties can better protect their interests and maintain a mutually beneficial arrangement. Through meticulous documentation and clarity of responsibilities, property owners can ensure a stable and reliable water supply system for their needs.
Property Co-ownership Agreement: Just like a Shared Well Agreement, a Property Co-ownership Agreement outlines the rights and responsibilities of each party who has an interest in a shared property. These documents are similar because they both deal with the shared use of property and the division of expenses related to its use and maintenance. In a Property Co-ownership Agreement, the focus might be on property taxes, insurance, and upkeep, whereas the Shared Well Agreement zeroes in on water supply and the infrastructure necessary to maintain it.
Homeowners' Association (HOA) Agreement: HOA Agreements and Shared Well Agreements also share commonalities, especially in terms of setting rules for shared resources within a community. An HOA Agreement might cover a wide range of items, from landscaping and common areas to utility services that affect an entire neighborhood. Similar to a Shared Well Agreement, an HOA Agreement involves collective decision-making, cost-sharing, and the establishment of guidelines for the equitable and sustainable use of shared resources.
Easement Agreement: Easements provide the right to use another person’s land for a specified purpose. A Shared Well Agreement includes elements of an Easement Agreement because it usually grants involved parties the rights to access and use certain parts of another's property for water supply purposes. This might involve installing and maintaining pipes and other infrastructure necessary to draw water from the well. Both types of agreements require clear definitions of rights, responsibilities, and the scope of use, as well as any restrictions.
Service Level Agreement (SLA): While usually reserved for the delivery of services between vendors and clients, SLAs and Shared Well Agreements have the concept of ongoing service and maintenance in common. Both outline the standards for service (in this case, the water supply and quality), detail the responsibilities of each party, and set forth remedies or consequences if the agreed-upon terms are not met. The focus on ensuring a consistent and satisfactory level of service links these two types of agreements closely together.
When entering into a Shared Well Agreement, it is crucial for all parties involved to approach the document with a thorough understanding and careful consideration. Below are essential do's and don'ts to keep in mind when filling out the Shared Well Agreement form:
Following these guidelines will help ensure that the Shared Well Agreement serves its purpose effectively, minimizing the potential for disputes and ensuring a fair and practical sharing of water resources.
When discussing the Shared Well Agreement form, several misconceptions frequently arise, leading to confusion and potentially incorrect assumptions about its contents and implications. It's beneficial to address and clarify these misconceptions to ensure all parties involved have a clear understanding of their rights and obligations under the agreement.
Many believe that entering into a Shared Well Agreement is optional. However, this agreement is crucial for defining the terms of use, maintenance responsibilities, and cost-sharing for the shared well. It legally binds all parties and helps prevent future disputes.
Some might think the agreement allows unlimited water usage. In reality, the Shared Well Agreement specifies that water from the well is for domestic use only, explicitly excluding activities like filling swimming pools.
There's a misconception that all costs associated with the well are automatically split equally. While the agreement does outline the sharing of expenses, specifics can vary, such as annual fees and the proportionate share of repair or maintenance costs, highlighting the importance of clear terms in the agreement.
It is often mistakenly thought that the agreement only applies to the current property owners. The Shared Well Agreement actually extends to heirs, successors, and assigns, ensuring that future owners and occupants of the properties are also bound by its terms.
A common misunderstanding is that the agreement does not cover water quality. However, it specifies that the well's water has been analyzed and deemed safe for human consumption by health authorities.
Some may believe that parties can make immediate changes to the agreement at any time. In reality, amendments to the agreement require mutual consent, and any termination of participation must be formally executed and filed with the appropriate office.
There's a misconception that no action can be taken in emergency situations without prior consent from all parties. The agreement expressly grants the right to correct emergencies promptly, ensuring water supply continuity.
Lastly, some believe that once entered, the agreement is permanent with no option for termination. The document provides conditions under which the agreement or certain rights and obligations can cease, including the availability of an alternative water source.
Understanding these misconceptions and their clarifications helps all parties involved in a Shared Well Agreement engage more meaningfully with its terms and ensures more harmonious and effective management of shared water resources.
When you are filling out and using a Shared Well Agreement form, there are several key takeaways to keep in mind to ensure everything is clear and agreed upon by all parties involved. Here's what you need to know:
By thoroughly addressing these points in a Shared Well Agreement, all parties can have a clear understanding of their rights and responsibilities, fostering cooperative management and use of the shared water resource.
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