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The Shared Well Agreement is a critical document that establishes the terms under which two or more parties can collectively utilize a shared water well and its distribution system. It details the rights and obligations of each party involved, ensuring that both the supplying and supplied parties can access water for domestic use while sharing the associated costs. Constructed for clarity, the agreement specifies essential details such as the legal descriptions of the properties connected to the well, payment structures for annual fees, and provisions for the maintenance and repair of the water distribution system. It also emphasizes the importance of having safe water, as the well’s output must meet health authority standards. Additionally, the document outlines the process for addressing emergencies, cost-sharing for energy usage, and procedures for termination if water becomes unusable. Through this agreement, parties can manage their shared resources effectively, preventing disputes and ensuring a reliable water supply for both present and future residents.

Sample - Shared Well Agreement Form

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)

File Specs

Fact Name Description
Purpose The Shared Well Agreement outlines the rights and obligations of parties sharing a well for domestic water use.
Involved Parties The agreement mandates involvement between a "supplying party" and a "supplied party," detailing their respective properties.
Property Description Each party's property, referred to as Parcel 1 and Parcel 2, must be clearly described within the agreement.
Water Quality The well water's safety for human consumption must be verified by the relevant state health authority.
Usage Rights Both parties retain the right to draw water from the shared well for domestic needs, excluding swimming pool refills.
Fee Structure The supplied party agrees to pay an annual fee and shared maintenance costs for the well and water distribution system.
Maintenance Responsibilities Each party is responsible for promptly repairing and maintaining the water pipes serving their respective properties.
Easements The agreement grants necessary easements for water system construction and maintenance across the involved properties.
Termination Conditions Provisions are in place for terminating participation in the agreement, including disconnection procedures and costs.
Governing Law The Shared Well Agreement is subject to the laws of the state where the properties are located.

Shared Well Agreement - Usage Guidelines

After completing the Shared Well Agreement form, both parties will have a clear understanding of their rights and responsibilities concerning the shared water supply. This agreement ensures that the necessary arrangements are in place for the adequate and safe use of well water for both properties involved. Carefully follow these steps to fill out the form correctly.

  1. Enter the date at the top of the form where indicated.
  2. Fill in the name of the supplying party and their residential address.
  3. Fill in the name of the supplied party and their residential address.
  4. Provide the legal description of Parcel 1, including the complete address.
  5. Provide the legal description of Parcel 2, including the complete address.
  6. Confirm the well's capacity to service a single-family dwelling, noting it adheres to safety standards.
  7. In the section detailing the agreements, list the annual fee for water use and the date of payment due.
  8. Outline shared expenses related to maintenance and operation costs. Ensure all costs are explicitly stated and divided among parties.
  9. Describe any easements required for water system maintenance, if applicable.
  10. Include any additional agreements on landscaping or emergency access in accordance with the guidelines.
  11. Sign and date the acknowledgment section to validate the agreement.

Your Questions, Answered

What is a Shared Well Agreement?

A Shared Well Agreement is a legal document that outlines the terms under which multiple property owners can share a well and its water distribution system. It details the rights and obligations of each party involved, ensuring that the well operates effectively and sustainably for all connected properties.

Who are the parties involved in a Shared Well Agreement?

The parties involved are typically a "supplying party," who owns the well and the property it sits on, and the "supplied party," who relies on the well for water. Each party must also own an adjacent property that benefits from access to the well.

What are the main responsibilities of each party?

Each party has specific responsibilities, including paying an annual fee for water access and sharing costs associated with maintenance and operation of the well. Additionally, all parties must ensure their own water lines are properly maintained and repaired as needed.

How are costs for maintenance determined?

Costs for maintenance are shared equally between the supplying and supplied parties. When a maintenance expense arises, the total cost will be divided in half, and each party must pay their share promptly. This includes costs related to electricity, repairs, and any necessary inspections.

What happens if the well becomes contaminated?

If the shared well becomes contaminated or inadequate for domestic use, the agreement will cease, and the parties are no longer bound by its terms. Each party must then arrange for an alternative water source, and a reasonable time frame will be allowed to make necessary connections.

How can a party withdraw from the agreement?

To withdraw, a party must file a written termination statement at the designated office where property deeds are recorded. After the termination, that party will no longer have access to the well or be responsible for any future maintenance costs.

What types of uses are prohibited regarding the well water?

The agreement stipulates that the water drawn from the well may only be used for domestic purposes. Filling swimming pools or other non-domestic uses is strictly prohibited. Additionally, no party can allow unauthorized individuals to use the well water.

What are the consequences of non-payment for the water supply?

If a party fails to pay their share of the energy costs for the well's operation within a specified time frame, the supplying party has the right to suspend water access until all overdue payments are settled. Timely payment is crucial to ensure uninterrupted service.

Common mistakes

When filling out the Shared Well Agreement form, individuals often make several common mistakes. Awareness of these potential pitfalls can streamline the process and minimize future complications. Here is a detailed overview of ten frequent errors:

  1. Incomplete personal information: Many people fail to fill in all required fields related to names and addresses. Each party must clearly state their full name and correct residential address.
  2. Missing property descriptions: It's crucial to include complete legal descriptions of both Parcel 1 and Parcel 2. Omitting any part can create confusion about the properties involved.
  3. Incorrect payment information: Some individuals skip over the annual fee amounts or provide inaccurate figures. Ensure that the amounts are correct and consistent throughout the agreement.
  4. Ignoring shared responsibilities: Parties sometimes overlook documenting how expenses will be shared. It’s essential to explicitly state how costs for maintenance and repairs will be divided between parties.
  5. Neglecting to describe easements: Failure to detail the easements necessary for well maintenance can lead to access issues later. Clear descriptions should be included to avoid conflicts.
  6. Omitting payment deadlines: Not specifying payment deadlines for energy costs can cause misunderstandings. All parties should agree on when payments are due to ensure clarity.
  7. Forgetting the arbitration clause: Some individuals might miss including or fully understanding the arbitration clause for resolving disputes. This should be clearly articulated to avoid conflicts in the future.
  8. Failure to define emergency situations: Not providing a clear definition of what constitutes an emergency can lead to disputes. It's vital to establish guidelines to enable quick action in urgent scenarios.
  9. Inconsistent terms throughout the document: Using different terms or phrasing related to shared parties or responsibilities may create confusion. Consistency is key in legal agreements.
  10. Lack of signatures: Often, parties forget to sign or have the document notarized. All required signatures, including notarization if necessary, must be completed for the agreement to be valid.

By taking care to avoid these common pitfalls, parties can help ensure a smoother process when entering into a Shared Well Agreement. Reviewing the form thoroughly before submission is always a best practice.

Documents used along the form

A Shared Well Agreement is an important document for managing water resources between property owners. Several other forms may accompany this agreement to ensure all aspects of the arrangement are clear and legally enforceable. Below is a list of other relevant documents often used in conjunction with the Shared Well Agreement.

  • Water Quality Test Report: This document certifies that the well water meets safety standards for human consumption. It typically includes analysis results from a certified laboratory.
  • Deed Descriptions: This documentation provides legal descriptions of the properties involved in the agreement, ensuring all parties are clear about the land parcels affected.
  • Access Easement Agreement: This form outlines the rights for accessing the well and related infrastructure. It helps establish the parameters within which parties can access one another's property for maintenance and emergencies.
  • Maintenance Agreement: This document specifies the responsibilities of each party regarding the upkeep of the well and the water distribution system. It can define who carries out repairs and how expenses will be shared.
  • Termination Notice: If a party wishes to exit the agreement, this form is required to officially revoke participation. It details the process for disconnection from the water supply.
  • Water Usage Agreement: This can further outline the limits and responsibilities relating to water usage from the shared well, including restrictions on filling large bodies of water like swimming pools.
  • Financial Agreement: This document establishes how costs associated with the well, including energy expenses and repairs, will be divided between the parties involved.
  • Arbitration Agreement: This document states the process for resolving disputes related to the well agreement, ensuring parties have a clear understanding of how conflicts will be managed.

Using these forms in conjunction with a Shared Well Agreement can help maintain clarity and cooperation among property owners. Each document plays a role in ensuring the agreement is comprehensive and equitable for all parties involved.

Similar forms

The Shared Well Agreement shares similarities with a Joint Use Agreement. Both documents facilitate shared access to resources, such as a well, by delineating the rights and obligations of the parties involved. In a Joint Use Agreement, parties must cooperate to manage and maintain the shared resource, ensuring it remains accessible for all designated users. This arrangement promotes accountability and establishes a clear framework for operational costs and responsibilities, similar to the provisions found in the Shared Well Agreement.

Another closely related document is a Co-Ownership Agreement. This type of agreement outlines the mutual interests of co-owners regarding a property or shared resource. Like the Shared Well Agreement, it details each party’s share in the benefits and costs associated with maintaining the property. Additionally, it often specifies the decision-making processes related to repairs and improvements, thereby promoting transparency and collaboration among parties with shared interests.

An Easement Agreement also bears resemblance to the Shared Well Agreement. An easement permits one party to access another person's land for a specific purpose, such as water distribution. Similar to easements described in the Shared Well Agreement, this document outlines the extent of access and any limitations on use. Moreover, both agreements emphasize the importance of preserving the rights of property owners while ensuring the shared resource functions effectively for all parties involved.

A Water Access Agreement serves a similar purpose as the Shared Well Agreement by regulating access to a water source. It typically outlines terms for usage, maintenance responsibilities, and payment obligations. Just as the Shared Well Agreement seeks to ensure equitable water access for specified parcels, a Water Access Agreement clarifies the conditions under which access is granted, promoting cooperation and fair distribution among all users.

The Shared Well Agreement can also be compared to a Maintenance Agreement. This type of document sets forth the responsibilities of each party regarding the upkeep of a shared facility or property. Maintenance Agreements specify who is responsible for repairs and the sharing of related costs, mirroring the cost-sharing provisions found within the Shared Well Agreement. Both documents aim to ensure that a shared resource remains functional and well-maintained for the benefit of all parties involved.

Lastly, a Homeowners Association (HOA) Agreement exhibits similarities to the Shared Well Agreement. An HOA Agreement establishes rules and responsibilities for members of a residential community, typically related to shared amenities like pools, parking areas, or landscapes. The HOA can assess fees for maintenance and enforce compliance, similar to how the Shared Well Agreement outlines financial contributions for water system upkeep. Both documents aim to enhance community living through clear expectations and cooperative engagement among neighbors.

Dos and Don'ts

When filling out the Shared Well Agreement form, there are several important practices to follow to ensure completeness and accuracy. Below is a list of things you should and should not do during this process.

  • Do read the entire form thoroughly before completing it.
  • Do ensure all property addresses are accurate and complete.
  • Do have legal descriptions of the properties ready to include where indicated.
  • Do confirm each party's understanding of their rights and obligations.
  • Don't skip any sections, even if they seem unimportant.
  • Don't leave any blanks; if a section does not apply, state that clearly.
  • Don't rush the process. Take time to review all entries for accuracy.
  • Don't forget to have the form notarized as required.

Misconceptions

Misconceptions can lead to confusion and misunderstandings about the Shared Well Agreement. Here are some common misconceptions and explanations to clarify them:

  • It’s only a one-time agreement. Many believe the Shared Well Agreement is a short-term arrangement. However, this agreement generally lasts indefinitely until one party terminates it according to the specified process.
  • Anyone can access the well water. Some think that friends or family can freely use the well water. In reality, only the parties in the agreement and their household members have the right to draw water.
  • Water quality is always guaranteed. While there is a provision for water quality analysis, contamination can occur later. If the well becomes contaminated, the agreement stipulates that the rights and obligations cease.
  • Costs are split evenly regardless of usage. There’s a belief that expenses will always be shared equally. The agreement states that costs for maintenance and operation are shared, but each party's specific share may vary based on actual usage.
  • The supplying party has full control over the well. Some think only the supplying party has rights to manage the well. In truth, both parties share responsibilities and decision-making for the well’s operation and maintenance.
  • Termination is complicated and lengthy. It’s believed that exiting the agreement is a challenging process. However, as long as you file a written statement of termination, the exit can be straightforward.
  • Landscaping won’t affect the agreement. Many assume they can landscape freely around the well. However, the agreement restricts any landscaping or improvements that might impair access to the well or easements.
  • Emergency repairs can be made without consent. Some may think they can act independently in emergencies. While you can address emergencies, pulling in others may require consent, depending on the situation.
  • Disputes must go to court. It’s a common misconception that all disputes over the agreement are resolved in court. The agreement stipulates that disputes should be settled through binding arbitration, which can be quicker and less expensive.

Key takeaways

When filling out and using the Shared Well Agreement form, consider the following key takeaways:

  • Identify the Parties: Clearly list the supplying party and supplied party, including their full names and addresses. This establishes who is involved in the agreement.
  • Well and Property Descriptions: Provide detailed legal descriptions of both Parcel 1 and Parcel 2. Accurate information about the properties ensures that the agreement is enforceable.
  • Annual Fees: Note that the supplied party is responsible for annual fees and shared costs. Be clear about payment deadlines and amounts, as these details avoid disputes later.
  • Maintenance Responsibilities: Understand that both parties must maintain their respective water pipes and may need to address emergencies quickly. This ensures that the water system operates smoothly.
  • Easement Rights: Mention any necessary easements granted for maintenance of the water system. This prevents future conflicts over property use and access.
  • Termination Clauses: Familiarize yourself with the conditions under which the agreement can be terminated. This includes circumstances like well contamination or the discovery of alternative water sources.