Structure
Misconceptions
- Misconception 1: The Shared Well Agreement is only for new properties.
- Misconception 2: Once signed, the agreement cannot be changed.
- Misconception 3: The supplying party is solely responsible for well maintenance.
- Misconception 4: The agreement automatically ends if one party moves away.
This is not true. Existing properties can also enter into a Shared Well Agreement. Whether you are building a new home or have been living in your property for years, if you share a well with another property, this agreement can clarify rights and responsibilities.
Many people believe that once the Shared Well Agreement is signed, it is set in stone. However, the agreement can be modified if all parties involved agree to the changes. Communication is key, and it’s important to keep the lines open for any necessary adjustments.
Some assume that only the supplying party must handle all maintenance costs. In reality, both parties share the responsibility for maintenance and repairs as outlined in the agreement. This ensures that both parties contribute to the upkeep of the well and water distribution system.
This is a common misunderstanding. The agreement does not automatically terminate when one party leaves. Instead, the rights and obligations continue, and the new owner may need to sign the agreement to maintain access to the well. It’s crucial for all parties to understand their ongoing responsibilities.
Detailed Steps for Filling Out Shared Well Agreement
Filling out the Shared Well Agreement form is a crucial step in formalizing the arrangement between parties sharing a well system. By completing this form, both the supplying party and the supplied party can ensure that their rights and responsibilities regarding the well and water distribution system are clearly defined. Follow these steps carefully to complete the form accurately.
- Begin by entering the date at the top of the form in the format "____ day of __________".
- Fill in the name of the supplying party and their address, including street, city, county, state, and zip code.
- Next, enter the name of the supplied party and their complete address in the same format.
- Provide the address of Parcel 1, which is owned by the supplying party, and include a legal description of the property.
- Fill in the address for Parcel 2, owned by the supplied party, along with its legal description.
- Detail the terms of the agreement, including the right to draw water for domestic use and any exclusions (e.g., filling swimming pools).
- Specify the annual fee for the use of the well and water distribution system, including any initial payment due at the time of signing.
- Outline the responsibilities for maintenance and repair costs, including how these will be shared between the parties.
- Indicate the payment terms for energy costs associated with the operation of the well and pumping equipment.
- Describe any easements necessary for the construction and maintenance of the water system.
- State the conditions under which landscaping or improvements may be made without impairing easement use.
- Define what constitutes an emergency situation and the rights of each party to access the relevant parcel during such emergencies.
- Clarify the restrictions on who may draw water from the well and the consequences of contamination or availability of alternative water sources.
- Ensure that the agreement specifies the process for termination of participation in the well agreement.
- Finally, include the date for signatures and any necessary acknowledgments before a notary public.
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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
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 |
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the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one |
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arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall |
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arbitrate said dispute. The arbitration shall be governed by the rules of the American |
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Arbitration Association then in force and effect. |
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Witness our signatures this the ____ day of __________, 20____. |
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__________________________________________________
(Acknowledgment before a notary public, the form of which will vary by state)
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Dos and Don'ts
When filling out the Shared Well Agreement form, it’s essential to be thorough and careful. Here’s a list of things to do and avoid:
- Do read the entire form carefully before starting. Understanding each section will help you provide accurate information.
- Do ensure all names and addresses are spelled correctly. Mistakes can lead to confusion and complications later.
- Do provide complete legal descriptions of the properties involved. This clarity helps define the agreement's scope.
- Do discuss the terms with all parties involved before signing. Open communication can prevent misunderstandings.
- Do keep a copy of the signed agreement for your records. Having documentation is crucial for future reference.
- Don't leave any sections blank. Incomplete forms may be rejected or cause delays in processing.
- Don't rush through the process. Taking your time ensures accuracy and helps avoid potential issues down the line.
Key takeaways
When filling out and using the Shared Well Agreement form, it is essential to understand the key components and implications of the document. Here are some important takeaways:
- Identify the Parties: Clearly state the names and addresses of both the supplying party and the supplied party. This ensures that all involved parties are properly recognized.
- Parcel Descriptions: Accurately describe the properties involved. This includes providing the legal descriptions for both Parcel 1 and Parcel 2, which helps in defining the scope of the agreement.
- Water Usage Rights: The agreement grants the right to draw water from the well for domestic use, but explicitly excludes filling swimming pools. This limitation should be understood by all parties.
- Annual Fees: The supplied party is responsible for paying an annual fee for the use of the well, which is due by January 15 each year. This fee structure should be noted for financial planning.
- Shared Maintenance Costs: Both parties must share the costs of operation and maintenance. This includes expenses for electricity and repairs, which should be divided equally.
- Emergency Access: In case of an emergency, parties have the right to access the other’s property to address issues with the water system. Understanding what constitutes an emergency is crucial.
- Termination of Agreement: The agreement can be terminated under specific conditions, such as contamination of the well or availability of another water source. Knowing the termination process is important for future planning.
- Installation Restrictions: No landscaping or improvements that impair the use of easements can be installed. This ensures that the water system remains functional.
- Arbitration Clause: Any disputes arising from the agreement will be resolved through binding arbitration. This clause is significant for conflict resolution.
- Perpetual Agreement: The agreement is intended to be perpetual, meaning it will continue indefinitely unless terminated by the parties involved. This should be kept in mind when entering into the agreement.
By keeping these takeaways in mind, parties can navigate the Shared Well Agreement form with greater clarity and understanding, ensuring that their rights and responsibilities are well-defined.
Similar forms
The Shared Well Agreement shares similarities with a Joint Use Agreement, which outlines the terms under which multiple parties can share a resource or property. Like the Shared Well Agreement, a Joint Use Agreement specifies the responsibilities of each party regarding maintenance, costs, and access to the shared resource. This type of agreement ensures that all parties understand their rights and obligations, thereby minimizing potential conflicts over usage and upkeep.
Another document akin to the Shared Well Agreement is a Water Supply Agreement. This agreement details the terms under which one party supplies water to another, including the quality, quantity, and payment structure. Similar to the Shared Well Agreement, it emphasizes the importance of maintaining a reliable water supply while addressing the financial responsibilities of each party involved in the arrangement.
A Shared Driveway Agreement is also comparable, as it governs the use and maintenance of a common driveway shared by multiple property owners. Like the Shared Well Agreement, it outlines each party's rights to use the driveway and specifies how costs related to maintenance and repairs will be shared. This ensures that all parties can access their properties while maintaining the driveway in good condition.
The Easement Agreement is another relevant document, which grants one party the right to use a portion of another party's property for a specific purpose. In the context of the Shared Well Agreement, easements are essential for allowing access to the well and related infrastructure. Both agreements clarify the rights of the parties involved and set boundaries to avoid disputes regarding property use.
A Maintenance Agreement is similar in that it defines the responsibilities of parties regarding the upkeep of shared facilities. This type of agreement can be particularly relevant in scenarios where multiple parties rely on a common resource, such as a well. Like the Shared Well Agreement, it emphasizes the importance of timely maintenance and the sharing of associated costs to ensure the resource remains functional for all users.
The Lease Agreement also bears resemblance to the Shared Well Agreement, especially when it involves shared resources on leased land. A Lease Agreement outlines the terms under which one party can use another's property, including any shared facilities. Both documents require clear communication about responsibilities and rights, ensuring that all parties are aware of their obligations during the lease term.
Lastly, a Partnership Agreement can be compared to the Shared Well Agreement, particularly when multiple parties collaborate on a shared venture. This type of agreement lays out the roles, responsibilities, and financial obligations of each partner. Like the Shared Well Agreement, it aims to foster a cooperative relationship while clearly defining how shared resources will be managed and maintained.
Documents used along the form
The Shared Well Agreement form serves as a crucial document for parties who wish to establish a shared water supply system. In addition to this agreement, several other forms and documents are commonly utilized to ensure clarity and legal compliance among the parties involved. Below is a list of these documents, each accompanied by a brief description.
- Property Deed: This document provides the legal description of the properties involved in the agreement. It establishes ownership and outlines any encumbrances or restrictions that may affect the use of the land.
- Easement Agreement: This document grants specific rights to one party to use a portion of another party's property for a designated purpose, such as accessing the well or maintaining water lines.
- Water Quality Test Results: This report certifies that the water from the well meets health and safety standards for human consumption. It is often required to ensure compliance with local regulations.
- Maintenance Agreement: This document outlines the responsibilities of each party regarding the upkeep and repair of the well and water distribution system, ensuring that all parties are aware of their obligations.
- Termination Notice: A formal document that a party can use to notify others of their intent to withdraw from the Shared Well Agreement. It specifies the process for disconnection and any associated costs.
- Insurance Policy: This document provides proof of insurance coverage for liability and damages related to the shared well system. It protects all parties from potential financial loss due to accidents or failures.
- Arbitration Agreement: This document outlines the process for resolving disputes that may arise under the Shared Well Agreement. It specifies the method of arbitration and the selection of arbitrators.
Utilizing these forms and documents in conjunction with the Shared Well Agreement can help establish a clear framework for cooperation and accountability among the parties involved. It is advisable to consult with legal professionals to ensure all necessary documents are properly executed and compliant with local laws.