Shared Well Agreement Template

Shared Well Agreement Template

A Shared Well Agreement is a legal document that outlines the terms and conditions under which multiple property owners share water sourced from a single well. This agreement not only details the rights and obligations of each party involved but also ensures the maintenance and operation of the shared water system. For those involved in such arrangements, filling out this agreement accurately is crucial; click the button below to complete the form.

Content Overview

The Shared Well Agreement form is a critical document designed to formalize the relationship between parties sharing a well and water distribution system. It articulates the rights and responsibilities of both the supplying and supplied parties regarding the use and maintenance of the well, which is vital for domestic water consumption. This Agreement outlines the specifics of each party's property, known as Parcel 1 and Parcel 2, and establishes their shared commitment to ensuring a reliable water supply. Key provisions include the designation of an annual fee for well usage, shared expenses for maintenance and operation, and detailed conditions under which water can be drawn, including the prohibition of filling swimming pools. Additionally, the form specifies the obligations related to repairs, easements for access, emergency protocols, and procedures governing the termination of the Agreement. The well's capacity for household use is confirmed, and provisions for the event of contamination or the availability of alternative water sources are included. Consequently, this Agreement serves not only to facilitate equitable sharing of resources but also to protect the interests of current and future property owners connected to the well system.

Shared Well Agreement Sample

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)

Document Attributes

Fact Name Fact Description
Purpose The Shared Well Agreement outlines the rights and responsibilities of parties sharing a well system for water distribution between multiple properties.
Governing Law The laws governing Shared Well Agreements may vary by state. For example, in California, it falls under California Civil Code Section 846.
Maintenance Costs Parties are required to share the costs for the operation and maintenance of the well system equally, ensuring a fair distribution of financial responsibilities.
Termination Participation in the Shared Well Agreement can be terminated by filing a written statement, which requires disconnection from the well and ceasing further obligations.

Shared Well Agreement: Usage Instruction

Completing the Shared Well Agreement form is a straightforward process that involves providing specific information about the parties involved and the properties in question. Once the form is filled out accurately, it should be signed by both parties in the presence of a notary public.

  1. Fill in the date where indicated on the first line. Write in the day and month.
  2. Enter the names of the parties involved. For the "supplying party," write the name of the individual or entity who owns the well.
  3. Complete the address of the supplying party, including street address, city, county, state, and zip code.
  4. Next, fill in the name of the "supplied party," who is the individual or entity receiving water from the well.
  5. Complete the address for the supplied party with the required information.
  6. In the section titled "Parcel 1," provide the street address for the property where the well is located. Then, include a legal description of the property in the designated space.
  7. For "Parcel 2," similarly provide the street address of the supplied party's property and the corresponding legal description.
  8. Specify the annual fee to be paid to the supplying party in the designated blank, along with the amount to be paid for the current year upon signing the agreement.
  9. Document the deadline for the payment of energy costs in the specified blank.
  10. Fill in the number of days allowed for payment before any water supply can be terminated in the designated blank.
  11. Describe any necessary easements in relation to the parcels, as needed, in the space provided.
  12. Review the entire document to ensure all blanks are filled in completely and accurately.
  13. Both parties should sign and date the agreement, ensuring that it is witnessed by a notary public.

To ensure the integrity of the agreement, retain copies for both parties after notarization. This step is essential for legal record-keeping and future reference.

Frequently Asked Questions

  1. What is a Shared Well Agreement?

    A Shared Well Agreement is a legal document that outlines the rights and responsibilities of both the supplying party and the supplied party regarding the use of a shared well water system. This agreement ensures that all parties understand their obligations regarding maintenance, costs, and the use of water from the well to avoid disputes and promote fair practices.

  2. Who needs to sign the Shared Well Agreement?

    Both parties involved—the owner of the property supplying the well water and the owner of the property receiving the water—need to sign this agreement. Their signatures indicate that they agree to the terms and conditions laid out in the document. It is crucial that all current and any future property owners participate in this agreement to prevent future conflicts.

  3. What are the financial obligations outlined in the agreement?

    The supplying party is allowed to charge an annual fee for the use of the well and the water distribution system. Additionally, each party agrees to share the costs associated with maintenance and operation, including, but not limited to, electricity for pumping and any repairs that may be necessary for the well or water distribution system. Specific proportions for these expenses are outlined in the agreement.

  4. What happens if the well becomes contaminated?

    Should the well become contaminated or unable to supply adequate water, the rights and obligations of the parties as defined in the Shared Well Agreement would cease. In this scenario, the parties may need to seek alternative water sources. This ensures that all parties have access to safe and sufficient water, without compromising health or legal obligations.

  5. What if one party wants to withdraw from the agreement?

    If a party wishes to terminate their participation in the Shared Well Agreement, they must execute a written statement of termination and file it with the appropriate office where property deeds are recorded. Once this is done, that party will no longer have rights to use the well or be responsible for any future expenses. This process provides a clear path for withdrawal while protecting the interests of the remaining parties.

Common mistakes

Filling out the Shared Well Agreement form correctly is essential to ensure that both parties understand their rights and obligations. However, there are common mistakes people make. One of the most frequent errors is incomplete or incorrect property descriptions. Each party must accurately fill in their property's address and legal description. Omitting this information or providing inaccurate details can create confusion and potential disputes later.

Another common mistake is failing to specify the annual fee and payment due dates clearly. In Section 2, it is important to note the exact amount of the annual fee and the payment schedule. Leaving these sections blank or using vague terms can lead to misunderstandings about financial obligations. This clarity helps both parties maintain a positive relationship.

Many people overlook the section on emergency repair access. Sections 11 is vital as it provides parties with the right to address emergency situations without prior consent. Not paying attention to this section may hinder timely responses to urgent issues, which could result in greater problems or damages.

Lastly, not understanding the termination process is a common oversight. Section 15 highlights the steps required to terminate participation in the agreement. Ignoring these requirements can lead to unintended consequences, such as continued financial responsibilities or complications in disconnection from the well system. Ensuring all parties are aware of this process promotes smooth transitions in the future.

Documents used along the form

A Shared Well Agreement is important for ensuring that the parties involved have a clear understanding of their rights and responsibilities regarding the use of a shared water source. Along with this agreement, several other documents can help clarify terms or provide additional protections. Here’s a brief overview of those commonly used documents:

  • Well Maintenance Agreement: This document outlines specific responsibilities regarding the maintenance and repair of the shared well and associated systems. It ensures that all parties know who is responsible for what, helping to prevent disputes over maintenance issues.
  • Water Quality Test Results: This document provides the results of any water quality tests performed on the shared well. It is essential for ensuring the water is safe for consumption and can help protect all parties if any health concerns arise in the future.
  • Easement Agreement: An easement agreement defines the rights of access to each property for the purpose of maintaining the well and associated water systems. This is crucial for allowing necessary repairs and upkeep without legal disputes regarding property boundaries.
  • Termination Agreement: This document can be used if one party wishes to exit the shared well arrangement. It formalizes the terms under which a person can withdraw and outlines the necessary steps to disconnect from the shared system.

These documents play a vital role in creating a harmonious environment among property owners sharing a well. They help clarify the expectations and responsibilities of all parties involved, which can lead to smoother operations and fewer conflicts over shared resources.

Similar forms

  • Joint Water Supply Agreement: Similar to the Shared Well Agreement, this document governs the collaborative use of a shared water supply, detailing terms for usage, maintenance, and cost sharing among multiple parties.
  • Community Well Agreement: Like the Shared Well Agreement, this document establishes terms for a community well serving multiple households. It addresses responsibilities for upkeep and distribution of water.
  • Water Use Management Agreement: This type of agreement outlines the management of water resources among stakeholders, ensuring all parties understand their share of usage rights and maintenance duties, akin to the Shared Well Agreement.
  • Utility Easement Agreement: This document provides rights to cross property lines to install and maintain utilities. It parallels the easement provisions found in the Shared Well Agreement.
  • Water Quality Assurance Agreement: Ensuring the potability of water, this agreement assures parties that water quality standards are met, much like the quality assurances stated in the Shared Well Agreement.
  • Service Agreement for Shared Resources: This type of agreement outlines the terms of service and costs for shared resources—similar to how the Shared Well Agreement stipulates water use and payment structures.
  • Common Area Maintenance Agreement: Similar to maintenance clauses in the Shared Well Agreement, this document details shared responsibilities for the upkeep of common facilities or resources among property owners.
  • Residential Easement Agreement: Like the easements granted in the Shared Well Agreement, this document grants rights regarding access and usage of parcels for maintenance of shared resources.
  • Collective Resource Sharing Agreement: This agreement outlines how multiple property owners can collectively access and share a resource, similar to the shared access and responsibilities detailed in the Shared Well Agreement.

Dos and Don'ts

When filling out the Shared Well Agreement form, it is essential to follow certain best practices to ensure clarity and compliance. Here are five key dos and don'ts:

  • Do read the entire agreement carefully before filling it out.
  • Do provide accurate legal descriptions for both properties.
  • Do specify the annual fee clearly and ensure both parties agree on the amount.
  • Do include all necessary signatures and acknowledgment before a notary public.
  • Do establish clear communication about shared costs and responsibilities.
  • Don't leave any fields blank unless expressly allowed.
  • Don't forget to date the agreement at the time of signing.
  • Don't ignore any local laws or regulations regarding shared well agreements.
  • Don't assume verbal agreements are sufficient; have everything documented.
  • Don't edit or alter any part of the agreement without mutual consent.

Misconceptions

Here are seven common misconceptions about the Shared Well Agreement form:

  • The Agreement is optional. Some believe that it’s not necessary to have a Shared Well Agreement if neighbors are using the same well. However, having a formal agreement protects the rights and responsibilities of all parties involved.
  • Only one party is responsible for well maintenance. Many think that only the supplying party shoulders the maintenance costs. In truth, both parties are equally responsible for the upkeep and any associated expenses.
  • This Agreement is only for drinking water. While the well must supply safe drinking water, the Agreement covers all domestic uses, including water for cooking and bathing.
  • It’s a fixed agreement with no chance for changes. Some assume the terms of the Agreement cannot be modified. In fact, parties can agree to amend the Agreement as circumstances change.
  • Emergency access is strictly regulated. There is a misconception that access during emergencies requires prior approval. The Agreement allows parties to act swiftly in emergencies without needing consent first.
  • Termination is simple. Many think they can easily opt-out of the Agreement. However, formal procedures must be followed, including filing a written termination at the appropriate county office.
  • All disputes must go to court. A common belief is that disputes under the Agreement can only be resolved in court. The Agreement actually requires disputes to be settled through binding arbitration.

Key takeaways

Filling out and using the Shared Well Agreement form requires careful attention to detail and a mutual understanding of responsibilities. Here are key takeaways to consider:

  • Complete Information Accurately: Provide all necessary addresses and legal descriptions for both Parcel 1 and Parcel 2 to ensure the agreement is enforceable.
  • Annual Fees: Timely payment of the annual fee by the supplied party is critical. This payment is due by January 15 each year.
  • Shared Expenses: Understand that all maintenance expenses will be shared equally between the parties. This includes costs for repairs and electricity for the water distribution system.
  • Emergency Access: Recognize the right to access the properties in an emergency to address water delivery failures or system malfunctions.
  • Proportionate Energy Costs: The supplied party must pay for the energy costs associated with the operation of the system based on separate meters for each parcel.
  • Disconnection Procedures: If a party wishes to terminate their involvement in the agreement, they must follow specific procedures to disconnect from the system.
  • Arbitration for Disputes: Be aware that any disputes related to the agreement will be resolved through binding arbitration, which all parties must adhere to.

Maintaining open communication and adherence to the agreement will benefit all parties. Be diligent to ensure clarity and compliance throughout the process.

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