The Shared Well Agreement is a legal document that outlines the terms and conditions under which two or more property owners share a well and its associated water distribution system. This agreement is essential for ensuring that all parties involved understand their rights and responsibilities regarding water usage and maintenance. By formalizing the arrangement, property owners can prevent disputes and establish a clear framework for cooperation.
The Shared Well Agreement form is an essential document for property owners who rely on a communal well for their water supply. This agreement outlines the rights and responsibilities of both the supplying party, who owns the well, and the supplied party, who benefits from its use. It details the properties involved, referred to as Parcel 1 and Parcel 2, ensuring that all parties have a clear understanding of their respective roles. The agreement specifies that the well is intended to provide adequate water for domestic use, emphasizing safety by confirming that the water has passed quality tests. It also addresses the financial aspects, including annual fees and shared costs for maintenance and repairs, making it clear how expenses will be divided. Additionally, the agreement includes provisions for emergency access, easements for maintenance, and the conditions under which the agreement may be terminated. With these elements, the Shared Well Agreement serves as a vital framework for cooperation and mutual benefit among neighbors, ensuring a reliable water supply for all parties involved.
What is a Shared Well Agreement?
A Shared Well Agreement is a legal document that outlines the rights and responsibilities of two or more parties who share a well and its water distribution system. This agreement specifies how water will be accessed, the costs associated with the well, and the maintenance responsibilities of each party. It aims to ensure that all parties have a clear understanding of their obligations and rights regarding the shared water source.
Who is involved in a Shared Well Agreement?
The agreement typically involves at least two parties: the "supplying party," who owns the property where the well is located, and the "supplied party," who benefits from the water supply. Each party's property is referred to as "Parcel 1" and "Parcel 2." The agreement is binding on current and future owners of these parcels, ensuring that all parties are aware of their rights and responsibilities, even if ownership changes.
What are the financial obligations outlined in the agreement?
The supplied party must pay an annual fee for the use of the well and water distribution system. This fee is due on or before January 15 each year. Additionally, both parties are responsible for sharing the costs of maintenance and repairs, which will be divided equally. Other expenses, such as energy costs for operating the pumping equipment, will also be shared based on separate meters installed for each parcel.
What happens if the well becomes contaminated?
If the well becomes contaminated or is no longer able to provide adequate water, the rights and obligations of the parties under the agreement will cease. In such cases, the parties will need to seek alternative water sources. The agreement also allows for a reasonable time to make necessary connections to a new water source if it becomes available.
When filling out and using the Shared Well Agreement form, there are several important points to keep in mind:
These key takeaways will help ensure that all parties understand their rights and responsibilities under the Shared Well Agreement, promoting a smooth and cooperative relationship.
Understanding the Shared Well Agreement form can be challenging, and several misconceptions often arise. Here are four common misunderstandings:
This is not true. Even if properties have been using a shared well for years, having a formal agreement is crucial. It clarifies the rights and responsibilities of all parties involved, ensuring that everyone understands their obligations regarding maintenance and costs.
This misconception overlooks the collaborative nature of the agreement. Any changes to the terms must be agreed upon by all parties involved. This ensures fairness and transparency in how the well system is managed.
In fact, both the supplying and supplied parties share the responsibility for maintenance costs. The agreement specifies that expenses will be divided equally, ensuring that all parties contribute to the upkeep of the well and water distribution system.
This is misleading. The rights and obligations outlined in the Shared Well Agreement continue even if a property changes ownership. New owners inherit the responsibilities and benefits of the agreement, which helps maintain continuity in water supply for all connected properties.
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)
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Xpo Straight Bill of Lading - Shippers should keep copies for their records to document the transaction.
Missing Dates: Failing to fill in the date at the beginning of the agreement can lead to confusion about when the agreement takes effect.
Incomplete Addresses: Not providing full addresses for both the supplying party and supplied party can create issues in identifying the properties involved.
Omitting Legal Descriptions: Leaving out the legal descriptions of both parcels can result in misunderstandings about the properties covered under the agreement.
Ignoring Payment Details: Forgetting to specify the annual fee or other payment obligations can lead to disputes over financial responsibilities later on.
Not Defining Easements: Failing to describe easements clearly may cause problems for future maintenance and access to the well and water distribution system.
Neglecting Emergency Procedures: Not addressing emergency situations adequately can hinder timely responses to water supply failures, affecting both parties.
When filling out the Shared Well Agreement form, it is essential to follow certain guidelines to ensure clarity and compliance. Here’s a list of things you should and shouldn’t do:
The Shared Well Agreement is similar to a Water Use Agreement, which outlines the terms under which multiple parties can access and utilize a shared water source. Like the Shared Well Agreement, it specifies the rights and responsibilities of each party regarding water usage, maintenance, and costs associated with the water source. Both agreements aim to ensure that all parties benefit from the shared resource while maintaining clear guidelines to prevent disputes over usage and financial obligations.
Another comparable document is the Easement Agreement, which grants one party the right to use a portion of another party's property for a specific purpose. In the context of a Shared Well Agreement, easements are often necessary for access to the well and water distribution systems. Both agreements establish clear boundaries and responsibilities, ensuring that the parties involved can effectively use the shared resource without infringing on each other's rights.
A Joint Use Agreement is also similar, as it governs the shared use of facilities or resources by two or more parties. This type of agreement lays out the terms for cooperation, maintenance, and cost-sharing, much like the Shared Well Agreement. Both documents aim to create a harmonious relationship between parties, ensuring that each participant can access the resource while contributing to its upkeep.
The Maintenance Agreement shares similarities as well, focusing specifically on the upkeep and repair of shared facilities. In the context of a well, this document would detail how maintenance tasks are divided among the parties and how costs are allocated. Like the Shared Well Agreement, it emphasizes the importance of collaboration to ensure the resource remains functional and safe for all users.
To facilitate your understanding, consider reviewing an informative guide on the importance of the Residential Lease Agreement template for Arizona residents, which can be found at this link.
Finally, a Lease Agreement can also be likened to the Shared Well Agreement, particularly when it involves the leasing of land for specific uses, such as water extraction. Both documents define the terms of use, responsibilities for maintenance, and financial obligations. While a Lease Agreement typically involves a landlord-tenant relationship, the principles of shared responsibility and clear communication are prevalent in both types of agreements, ensuring that all parties understand their rights and obligations.