The Shared Well Agreement form serves as a formal document outlining the rights and responsibilities of two parties sharing a well water system. This agreement ensures that both parties can access and maintain a reliable water supply for their respective properties while detailing the costs associated with this shared resource. Understanding this form is crucial for any homeowners involved in a shared well situation, as it lays the foundation for cooperation and mutual benefit.
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A Shared Well Agreement is a formal document that outlines the rights and responsibilities of property owners who share a well and water distribution system. It establishes how water will be supplied, the costs associated with maintenance, and the obligations of each party involved. This agreement ensures that all parties have a clear understanding of their access to water resources and the shared responsibilities that come with it.
The agreement involves two main parties: the supplying party and the supplied party. The supplying party owns the property where the well is located, while the supplied party owns a property that will draw water from this well. Both parties must agree to the terms set forth in the agreement to ensure a smooth operation of the water supply system.
Each party has specific financial obligations. The supplied party must pay an annual fee for the use of the well and water distribution system. Additionally, both parties share the costs of maintenance and operation, including electricity and necessary repairs. The costs are typically split equally, ensuring that both parties contribute to the upkeep of the water system.
If the well becomes contaminated or fails to supply adequate water, the rights and obligations outlined in the Shared Well Agreement will cease. The parties will need to disconnect from the well system and may explore alternative water sources. A reasonable timeframe will be allowed to make these necessary connections, ensuring that all parties have access to safe water.
When entering into a Shared Well Agreement, it’s important to consider additional documents that may be necessary for proper management and legal clarity regarding shared water resources. Below is a list of forms and documents that are commonly used alongside the Shared Well Agreement. Each document serves a unique purpose and can help ensure a smooth and effective partnership between the parties involved.
Incorporating these documents alongside the Shared Well Agreement can create a comprehensive framework for cooperation and management. Each form plays a vital role in ensuring that all parties understand their rights and responsibilities, ultimately leading to a successful shared water arrangement.
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 the Shared Well Agreement form can be a straightforward process, but there are common mistakes that individuals often make. One frequent error is failing to provide complete information in the designated fields. For instance, both parties must include their full names and accurate addresses. Incomplete or incorrect information can lead to disputes down the line.
Another mistake is neglecting to include the legal description of the properties involved. This description is crucial for identifying the parcels connected to the well system. Without it, the agreement may lack clarity, leading to confusion about which properties are covered.
Many people also overlook the importance of specifying the annual fee for using the well and water distribution system. It is essential to fill in this amount clearly and ensure that both parties agree on it. Leaving this section blank can create misunderstandings about financial responsibilities.
Additionally, individuals often forget to outline the easements necessary for maintenance and operation of the well. This omission can hinder access for repairs or emergencies. Clearly describing these easements in the agreement is vital for both parties to understand their rights and responsibilities.
Another common oversight involves the payment deadlines. Parties may fail to specify the exact day for monthly energy cost payments, which can lead to disputes over timeliness. Clearly stating this date ensures that both parties are on the same page regarding payment expectations.
Some individuals also neglect to address the consequences of non-payment. The agreement should clearly state what happens if payments are late. This clarity helps prevent misunderstandings and ensures that both parties understand the implications of missed payments.
Moreover, parties sometimes do not include the necessary provisions for emergency situations. The agreement should specify what constitutes an emergency and the rights of each party to act in such situations. This can prevent delays in addressing urgent issues that may arise.
Lastly, failing to sign and date the agreement properly can invalidate it. Both parties must ensure that they provide their signatures and the date at the end of the document. This step is crucial for the agreement to be legally binding.
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