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Content Overview

In the context of managing water resources efficiently and fostering harmonious relationships between neighbors, the Shared Well Agreement form serves as a crucial legal document. By establishing clear guidelines and obligations for the parties involved, this agreement ensures the fair distribution and maintenance of a shared water supply system. It meticulously outlines the responsibilities concerning the operation, maintenance, and financial aspects, such as the sharing of costs for water consumption and system upkeep. The agreement is entered into by two parties, designated as the "supplying party," who owns the well, and the "supplied party," both of whom agree to the terms that govern the usage and maintenance of the well and associated water distribution systems. Further, the agreement contains provisions for emergency situations, easements for maintenance and repairs, and terms for the potential termination of the agreement. This legal framework not only guarantees access to safe and adequate water for domestic use but also prescribes a method for dispute resolution, thereby ensuring sustained cooperation between neighboring property owners. The importance of such an agreement cannot be understated, as it provides a structured approach to resolving what can often be a complex and sensitive issue.

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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 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)

Form Specifications

Fact Number Detail
1 The Shared Well Agreement is established between a supplying party and a supplied party for water provision.
2 It specifies the properties (Parcel 1 and Parcel 2) that will utilize the shared well and water distribution system.
3 Both parties agree on the well's capacity to supply water for domestic use to single-family dwellings on each parcel.
4 The agreement includes provisions for annual fees and the sharing of maintenance and repair costs.
5 Emergency situations allow for immediate response and access to the pertinent parcel by either party.
6 The agreement grants easements for construction, maintenance, and operation of necessary infrastructure.
7 Conditions for the termination of the agreement and obligations thereafter are clearly laid out.
8 Dispute resolution within the agreement is designated to binding arbitration according to the American Arbitration Association rules.

Shared Well Agreement: Usage Guidelines

When preparing a Shared Well Agreement, a comprehensive approach is needed to ensure all details align with the mutual interests of both the supplying and supplied parties. This document will facilitate a clear understanding of rights, responsibilities, and procedures related to the shared use of a well, including water consumption, cost-sharing, maintenance, and dispute resolution. Following the correct steps to fill out this form is crucial for a legally binding agreement that protects all parties involved.

  1. Start by entering the date of the agreement at the top of the form where it says "this ____ day of __________."
  2. Fill in the names and addresses of both the supplying party and the supplied party in the space provided following "by and between." Ensure accuracy in detailing street addresses, cities, counties, states, and zip codes for both parties.
  3. Identify "Parcel 1" by entering the supplying party's property address and the legal description of the property. A legal description can often be found on the deed or by contacting a local assessor's office or a title company.
  4. Similarly, identify "Parcel 2" by entering the supplied party's property address and legal description.
  5. Understand the provisions related to the setup, usage, and maintenance of the well and water distribution system. No input is required here, but both parties should review these sections carefully to ensure understanding and agreement.
  6. Enter the annual fee amount agreed upon for the use of the well and water distribution system in the space provided after "an annual fee for this use of the well and water distribution system in the amount of $." Remember, this fee is payable on or before the 15th of January each year except for the amount payable upon executing the agreement, which should also be filled in.
  7. Detail the shared expenses clause including the understanding of how operational and maintenance expenses are divided between the parties.
  8. Specify the energy cost sharing agreement and the due date for monthly energy payments, including the grace period before service may be terminated for non-payment.
  9. Describe any easements granted for the construction, maintenance, or repair of the well and water distribution system. This information must be precise to prevent future disputes regarding access and use.
  10. If applicable, fill in any landscaping or improvement limitations that could affect the use of shared easements.
  11. Review and acknowledge the emergency management, usage restrictions, and termination conditions within the agreement to ensure they meet both parties' needs.
  12. Last, make sure both parties sign the agreement in front of a notary public. The notary will complete the acknowledgment section which can vary by state. This step is critical as it authenticates the signatures, making the document legally binding.

After completing these steps, both parties should keep a copy of the signed agreement for their records. Additionally, it is recommended to file a copy with the relevant county office to officially record the agreement and covenant running with the land. This action ensures that future property owners are aware of and bound by the terms of the Shared Well Agreement.

Your Questions, Answered

What is a Shared Well Agreement?

A Shared Well Agreement is a legal document that outlines the terms and conditions between two or more property owners for the sharing of a water well. It specifies how water from the well will be distributed, the maintenance responsibilities, and the costs involved for each party. This agreement ensures that all parties have access to an adequate supply of water for domestic use while outlining obligations for the upkeep and repair of the shared water system.

Who needs to sign the Shared Well Agreement?

The owners of the properties that will rely on the shared well for water supply must sign the agreement. This includes the supplying party, who owns the property where the well is located, and the supplied party, or parties, who are granted access to the water. Future owners, their heirs, successors, and assigns are also bound by the terms of this agreement.

How are the costs for maintenance and operation divided?

Costs for the operation, maintenance, and necessary repairs of the well and water distribution system are shared between the supplying and supplied parties. This typically involves splitting these expenses equally, unless otherwise specified in the agreement. Annual fees and specific costs like electricity for pumping are also shared, with details on payment schedules included in the agreement.

What happens if there is an emergency situation affecting the water supply?

In an emergency situation where the shared well system fails to deliver water, each party has the right to act quickly to correct the issue. The agreement provides for access to the respective parcel in need of repair to address the emergency efficiently, ensuring continuous water supply.

Are there any restrictions on water usage?

Yes, the agreement typically includes restrictions to ensure the sustainable use of the shared water resource. For example, drawing water to fill swimming pools may be prohibited. These restrictions aim to guarantee an adequate supply of water for all domestic uses by the households connected to the system.

Can new parties be added to the Shared Well Agreement?

The addition of new parties generally requires the consent of the current parties to the agreement. This ensures that the well's capacity to supply water is not exceeded and that the terms of use and cost-sharing are agreed upon by all users.

What if the well becomes contaminated or insufficient?

If the well can no longer provide safe and adequate water for domestic consumption, the rights and obligations under the agreement cease. Alternate water sources must be sought, and the terms for transitioning to the new source are defined in the agreement until such source becomes available and connections are made.

How is the agreement terminated?

Parties wishing to terminate their participation must execute and file a written statement of termination in the appropriate records office. Upon termination, they must disconnect from the well system and are relieved from future costs related to maintenance and repair. The costs of disconnection are borne by the terminating owner.

Is the Shared Well Agreement legally binding on future owners?

Yes, the agreement includes a covenant running with the land, meaning it is binding on future owners, their heirs, and successors. This ensures that the terms of the agreement continue to regulate the use and maintenance of the well beyond the original signatories.

How are disputes resolved under this Agreement?

Disputes are to be resolved through binding arbitration. If parties cannot agree on an arbitrator, each selects one, and those two arbitrators then select a third to arbitrate the dispute. The arbitration process is governed by the rules of the American Arbitration Association, ensuring a structured and fair resolution.

Common mistakes

When filling out a Shared Well Agreement form, people often overlook key details that are crucial for ensuring the agreement serves its intended purpose and legally protects all parties involved. Addressing these common mistakes can help avoid future disputes, misunderstandings, and potential legal issues.

  1. Not clearly defining the properties involved: It's essential to include complete and accurate legal descriptions of Parcel 1 and Parcel 2. This detail prevents any ambiguity about which properties the agreement covers. Without precise descriptions, enforcing the agreement can become challenging if disputes arise.
  2. Overlooking the water quality analysis requirements: The agreement mentions that the water has been analyzed and deemed safe by the state health authority. However, parties sometimes forget to attach the actual analysis report or to periodically update it as required. Ensuring the water's safety is a continuous obligation, not a one-time check.
  3. Failing to specify costs and payment details: Clarity on the financial obligations, including the annual fee, proportionate share of maintenance expenses, and energy costs for pumping, is critical. When parties do not detail how these costs are calculated, when they are due, and the consequences of late payments, it leads to confusion and disagreements.
  4. Ignoring the easement descriptions: Easements granting access for construction, maintenance, and operation of the water distribution system are vital. Not clearly describing these easements, or omitting them entirely, can lead to disputes over property use and access. Detailed descriptions ensure everyone understands their rights and responsibilities.

By paying close attention to these areas when completing the Shared Well Agreement form, parties can help ensure a fair and effective arrangement that minimizes the risk of future conflicts.

Documents used along the form

When it comes to managing shared resources like a well, the Shared Well Agreement form is crucial, but it's often just the starting point. Several other forms and documents typically accompany or support this agreement in order to ensure all legal and logistical bases are covered. These documents help in clarifying responsibilities, detailing property boundaries, and ensuring the quality and sustainability of the shared water source.

  1. Property Deeds: Legally binding documents detailing the ownership and boundaries of the properties involved. These are essential for defining which parcels of land have access to the shared well.
  2. Easement Agreements: These documents provide the legal right to use a portion of another's property, such as for accessing the well or laying water pipes.
  3. Well Maintenance Records: Keeping a detailed log of maintenance, repairs, and inspections to the well and water distribution system can help manage responsibilities and costs shared between parties.
  4. Water Quality Reports: Regular testing and reports on the water's safety for consumption are crucial. These documents ensure the water meets health standards.
  5. Cost Sharing Agreements: Detailed records of how costs for maintenance, repairs, electricity, and other well-related expenses are divided among the parties.
  6. Dispute Resolution Agreement: Outlines how disagreements about the well or shared expenses are to be resolved, potentially including mediation or arbitration procedures.
  7. Well Construction and Repair Permits: Documentation of any required legal permits for well construction, maintenance, or significant repairs, ensuring compliance with local regulations.
  8. Title Insurance Policies: These policies can protect against any disputes over the property or easements related to the shared well.
  9. Successor Assignment Forms: These forms address the transfer of responsibilities and rights under the shared well agreement to new property owners.
  10. Emergency Action Plans: Detailed plans for responding to a water supply disruption, contamination, or other emergencies related to the well.

Together, these documents form a comprehensive framework that supports the Shared Well Agreement, ensuring all parties’ rights and responsibilities are clear and enforceable. They also provide a structured path for managing the shared well over time, including maintenance, cost-sharing, and any necessary dispute resolution. Solid, clear documentation is key to a successful shared resource arrangement.

Similar forms

  • Property Co-ownership Agreement: Just like a Shared Well Agreement delineates the rights, responsibilities, and shares of costs between parties for the use of a well, a Property Co-ownership Agreement outlines how multiple owners will share expenses, use, and responsibilities for a property. Both agreements establish the groundwork for shared ownership and operation, ensuring all parties know their commitments.

  • Homeowners' Association (HOA) Agreement: An HOA Agreement, often binding property owners within a specified community, can resemble a Shared Well Agreement in terms of setting out rules for shared resources and facilities within the community. Both documents aim to maintain quality and accessibility, overseeing the distribution of costs for upkeep and enforcing regulations that ensure the equitable enjoyment of shared amenities.

  • Easement Agreement: Easement Agreements grant rights to use another's property for a specific purpose, similar to how Shared Well Agreements may include easements allowing access for maintenance of water pipes or the well itself. Both types of agreements carefully describe the rights granted to non-owning parties to cross or use certain parts of the property.

  • Utility Sharing Agreement: This agreement facilitates the sharing of utility services, such as electricity or sewage, between neighboring parcels of land, much like a Shared Well Agreement does for water. It specifies the sharing of costs, maintenance responsibilities, and how the services will be metered or divided, establishing clear expectations between the involved parties.

  • Landlord-Tenant Agreement: Although fundamentally different in nature—focusing on the lease of property—certain aspects of landlord-tenant agreements concerning maintenance, utility payments, and use of property can mirror the stipulations found in a Shared Well Agreement. Both set forth the terms for usage, payment, and upkeep related to the property in question.

  • Maintenance Agreement: Maintenance Agreements, which outline the responsibilities for the upkeep of a property, equipment, or system, share common ground with Shared Well Agreements when it comes to defining who is responsible for what tasks, payment of related costs, and procedures for addressing repairs or emergency situations. The core aim is to ensure continuous, satisfactory operation of the shared asset or service.

  • Partnership Agreement: Although typically used in a business context, the essence of a Partnership Agreement—to detail the division of responsibilities, profits, and decision-making among partners—has parallels with a Shared Well Agreement’s purpose to divide costs, rights, and duties related to a shared well. Both are foundational to the relationship, establishing a framework that governs operations and conflict resolution.

Dos and Don'ts

When filling out a Shared Well Agreement form, adhering to a checklist of do's and don'ts can streamline the process, safeguard your interests, and ensure the durability of the agreement among parties. Below are the key points to consider:

  • Do carefully review the entire agreement before signing to understand all obligations and rights.
  • Do verify all property descriptions and legal references are accurate to prevent future disputes.
  • Do clearly outline each party’s responsibilities for payments, maintenance, and repairs to avoid misunderstandings.
  • Do include specific terms regarding the termination of the agreement and conditions under which new parties can join.
  • Do consult with a legal professional experienced in real estate matters to ensure the agreement complies with local laws and regulations.
  • Don’t leave any blanks in the agreement; if a section does not apply, indicate with N/A to show it was considered.
  • Don’t ignore the need for a clear dispute resolution process, including arbitration details, to manage potential disagreements effectively.
  • Don’t forget to specify the duration of the agreement and under what circumstances it can be reviewed or amended.
  • Don’t overlook the requirement for witness or notary signatures where applicable to ensure the document’s enforceability.

Following these guidelines can help create a fair and balanced Shared Well Agreement that respects the needs and expectations of all parties involved, ensuring a cooperative relationship for years to come.

Misconceptions

When it comes to Shared Well Agreements, several misconceptions commonly arise, leading to confusion and potential disputes among parties. Here are five of the most prevalent misunderstandings:

  • A Shared Well Agreement is only a formality and doesn't need to be strictly adhered to. This is incorrect because a Shared Well Agreement is a legally binding document that outlines the rights and responsibilities of each party. It ensures that all parties have access to water and share the costs of maintenance and operation fairly. Ignoring its terms can lead to legal disputes and interruptions in water supply.

  • Parties can exit a Shared Well Agreement at any time without consequences. Exiting a Shared Well Agreement is not as simple as deciding not to participate anymore. The agreement outlines specific conditions under which the agreement can be terminated, and failing to follow these can result in legal and financial consequences. Any party wishing to terminate their participation must do so in accordance with the terms, including filing a written statement of termination as specified.

  • The supplying party has more control over the well than the supplied party. While it may seem that the supplying party, being the property owner where the well is located, would have more control, the agreement actually grants equal rights and responsibilities to all parties involved. Both the supplying and supplied parties must adhere to the terms of the agreement, ensuring fair access and cost-sharing for well maintenance and operation.

  • Shared Well Agreements are the same regardless of location. While Shared Well Agreements may share common elements, the specifics can vary widely depending on local laws and regulations, the physical characteristics of the properties involved, and the specific needs of the parties. It's important for such agreements to be drafted with these factors in mind to ensure they are fair and legally sound.

  • Only the original parties to the agreement are bound by its terms. One of the fundamental elements of a Shared Well Agreement is that it is binding not only on the parties who sign it but also on their heirs, successors in title, and assigns. This means that if a property changes hands, the new owner is still obligated to follow the terms of the agreement. This ensures the continued operation and maintenance of the well system over time.

Key takeaways

When filling out and using a Shared Well Agreement form, it's important to understand the key components and implications of the agreement. This document not only outlines the responsibilities and rights of each party involved but also ensures the proper management and maintenance of the shared water supply. Here are seven key takeaways to keep in mind:

  • Clearly identify all parties involved: The agreement must include the full names and addresses of the supplying and supplied parties, as well as a detailed legal description of the properties involved.
  • Outline the terms of water use: The agreement should specify the purposes for which the water can be used by the supplied party, including any restrictions, such as the prohibition of filling swimming pools.
  • Financial responsibilities: The document must detail the annual fees payable by the supplied party, the division of operating and maintenance expenses, and the cost-sharing arrangements for any necessary repairs to the water distribution system or other affected site improvements.
  • Maintenance and repairs: Both parties are responsible for the upkeep of the water pipes or mains that service their dwellings. The agreement should also clarify the process for approving and financing maintenance, improvements, or repairs to the shared system, including emergency situations.
  • Easement rights: The agreement grants each party the necessary easements for the construction, maintenance, and operation of the well and associated infrastructure. It should include a clear description of these easements.
  • Limited use and access: Only specified properties and their occupants have the right to draw water from the well. The agreement also outlines the conditions under which one party may access another's property in emergency situations.
  • Termination and dispute resolution: The conditions under which the agreement can be terminated, and the process for disconnecting a party from the well system are stated. Additionally, the agreement should spell out how disputes will be resolved, often through binding arbitration according to specified rules.

Understanding these key elements can help prevent misunderstandings and conflicts, ensuring that all parties enjoy a fair and efficient shared access to water.