Fill Out a Valid Shared Well Agreement Template Launch Editor Here

Fill Out a Valid Shared Well Agreement Template

The Shared Well Agreement is a legal document that outlines the terms and conditions for sharing a well water system between two or more property owners. This agreement ensures that all parties understand their rights and responsibilities regarding water usage and maintenance. By formalizing the arrangement, it helps prevent disputes and promotes a cooperative relationship among the involved homeowners.

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The Shared Well Agreement form serves as a vital document for property owners who wish to share a well and its associated water distribution system. This agreement is designed to outline the rights and responsibilities of both the supplying party and the supplied party, ensuring a clear understanding of how water will be accessed and maintained. It specifies the properties involved, known as Parcel 1 and Parcel 2, and details the well's capacity to support domestic needs for each household. The form establishes the financial obligations of the supplied party, including annual fees and shared costs for maintenance and operation. Additionally, it addresses easements for access to the well and infrastructure, emergency situations, and the protocol for terminating the agreement if the well becomes contaminated or if an alternative water source becomes available. By documenting these terms, the Shared Well Agreement aims to foster cooperation and prevent disputes among parties, ensuring that all involved can benefit from a reliable water supply.

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Misconceptions

Here are 10 misconceptions about the Shared Well Agreement form, along with clarifications for each:

  • Misconception 1: The Shared Well Agreement is only for new properties.
  • This agreement can be established for existing properties as well, as long as both parties agree to the terms.

  • Misconception 2: Only one party is responsible for maintenance costs.
  • Both parties share maintenance costs equally, as outlined in the agreement.

  • Misconception 3: The agreement allows unlimited water usage.
  • Water usage is restricted to domestic purposes only, excluding uses like filling swimming pools.

  • Misconception 4: The agreement is temporary and can be easily terminated.
  • The agreement is perpetual unless a formal termination process is followed, which involves filing a written statement.

  • Misconception 5: Anyone can access the well water.
  • Only the parties involved and their household guests are permitted to use the water from the well.

  • Misconception 6: The supplying party can unilaterally change the terms.
  • Changes to the agreement require consent from all parties involved.

  • Misconception 7: Water quality is not a concern.
  • The agreement specifies that the water must pass a quality analysis to ensure it is safe for consumption.

  • Misconception 8: The supplied party has no rights to the well.
  • The supplied party has equal rights to draw water from the well for domestic use.

  • Misconception 9: Disputes must go to court.
  • Disputes are required to be resolved through binding arbitration, not in a court of law.

  • Misconception 10: The agreement does not cover emergencies.
  • The agreement includes provisions for emergency situations, allowing access for necessary repairs.

Key takeaways

When filling out and using the Shared Well Agreement form, it is essential to understand the key components and responsibilities outlined in the document. Here are some important takeaways:

  • Identify Parties: Clearly state the names and addresses of both the supplying party and the supplied party. Accurate information is crucial for legal clarity.
  • Parcel Descriptions: Provide detailed legal descriptions of both Parcel 1 and Parcel 2. This ensures that the properties involved are clearly defined.
  • Water Rights: The agreement grants both parties the right to draw water for domestic use, but it explicitly excludes filling swimming pools. Understanding these limitations is vital.
  • Annual Fees: The supplied party must pay an annual fee by January 15 each year. The fee for the first year may differ, so be sure to specify that amount.
  • Shared Expenses: Both parties are responsible for half of the operational and maintenance costs. This includes electricity and repairs, which should be agreed upon beforehand.
  • Emergency Access: In case of an emergency, parties can access each other’s properties to resolve issues. Define what constitutes an emergency to avoid misunderstandings.
  • Termination Conditions: The agreement can be terminated if the well becomes contaminated or if a new water source is available. Understand the process for termination to protect your rights.
  • Easements: The agreement may grant easements for maintenance and construction. Ensure that these are clearly described to avoid future disputes.
  • Dispute Resolution: Any disputes arising from the agreement will be resolved through binding arbitration. Knowing this process can save time and legal costs.

By keeping these points in mind, both parties can effectively navigate the Shared Well Agreement and ensure a smooth operation of the water distribution system.

Dos and Don'ts

When filling out the Shared Well Agreement form, it's important to follow certain guidelines to ensure accuracy and clarity. Here are nine things to do and avoid:

  • Do fill in all required fields completely, including names and addresses.
  • Do provide accurate legal descriptions of the properties involved.
  • Do clearly state the annual fee and payment deadlines.
  • Do ensure all parties agree to the terms before signing.
  • Do keep a copy of the signed agreement for your records.
  • Don't leave any sections blank; incomplete forms can lead to misunderstandings.
  • Don't use vague language; be specific about rights and obligations.
  • Don't forget to include the easements if applicable.
  • Don't ignore the importance of having the agreement notarized if required.

Shared Well Agreement Preview

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)