Free Shared Well Agreement PDF Form

Free Shared Well Agreement PDF Form

The Shared Well Agreement is a formal document that outlines the terms under which two or more parties can share a well and its water distribution system. This agreement serves to protect the rights and responsibilities of each party involved, ensuring that they have access to a reliable water source while also sharing the costs associated with its maintenance. By clearly defining these terms, the agreement helps to prevent disputes and promotes a harmonious relationship between the parties.

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The Shared Well Agreement form is a crucial document for property owners who rely on a common well system for their water supply. This agreement outlines the rights and responsibilities of the parties involved, specifically the "supplying party" and the "supplied party." It details the ownership and description of the properties involved, referred to as Parcel 1 and Parcel 2. The agreement emphasizes the need for a well system that adequately services both parcels, ensuring a reliable water supply for domestic use. The form also includes provisions for the annual fees that the supplied party must pay to the supplying party, as well as shared expenses related to the operation and maintenance of the well and water distribution system. Furthermore, it establishes guidelines for emergency situations, easements for maintenance access, and the conditions under which the agreement can be terminated. Notably, the document specifies that all parties must adhere to the terms to maintain access to the water supply, highlighting the importance of cooperation among neighbors who share this vital resource.

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)

Documents used along the form

The Shared Well Agreement is an essential document for parties sharing a well system. Several other forms and documents often accompany this agreement to ensure clarity and compliance with local regulations. Below is a list of related documents that may be necessary.

  • Property Deed: This document outlines the legal ownership of the properties involved in the agreement. It provides essential details about the parcels of land, including boundaries and any existing liens or encumbrances.
  • Water Quality Test Results: A report from a certified laboratory that confirms the water's safety for human consumption. This document is crucial for ensuring that all parties are aware of the water's quality before entering the agreement.
  • Easement Agreement: This document grants the necessary rights for access to the well and water distribution system. It outlines the specific areas where easements exist and the rights of each party regarding these easements.
  • Maintenance Agreement: A separate document that details the responsibilities of each party regarding the maintenance and repair of the well and water distribution system. It clarifies who is responsible for costs associated with upkeep.
  • Termination Notice: This document is used to formally notify the other party of the intent to terminate participation in the Shared Well Agreement. It outlines the procedures for disconnection and any remaining obligations.
  • Quitclaim Deed Form: For those needing to transfer property interest, reviewing the step-by-step Quitclaim Deed form instructions can facilitate the process.
  • Insurance Policy: Proof of insurance coverage for the well and water distribution system. This document protects all parties from liability in case of accidents or damages related to the water supply.
  • Arbitration Agreement: A document that specifies the process for resolving disputes related to the Shared Well Agreement. It outlines how arbitrators will be selected and the rules governing the arbitration process.
  • Annual Fee Payment Receipt: A receipt that confirms payment of the annual fee for the use of the well. This document serves as proof of compliance with the financial obligations outlined in the Shared Well Agreement.

Each of these documents plays a vital role in ensuring that the Shared Well Agreement functions smoothly and that all parties understand their rights and responsibilities. Proper documentation helps prevent misunderstandings and provides a clear framework for cooperation.

Key takeaways

When filling out and using the Shared Well Agreement form, there are several important points to consider. Understanding these key takeaways can help ensure a smooth process for all parties involved.

  • Clear Identification of Parties: Ensure that all parties involved in the agreement are clearly identified, including their addresses. This clarity helps establish the rights and obligations of each party.
  • Cost Sharing Responsibilities: The agreement outlines how costs will be shared, including annual fees and maintenance expenses. Each party must understand their financial obligations to avoid future disputes.
  • Emergency Access Provisions: In case of an emergency, parties have the right to access each other's properties to address issues related to the water system. This provision ensures that immediate concerns can be resolved without delay.
  • Termination Conditions: The agreement specifies conditions under which the agreement can be terminated, such as contamination of the well or availability of a new water source. Parties should be aware of these conditions to understand their long-term commitments.

Form Overview

Fact Name Description
Purpose The Shared Well Agreement outlines the rights and responsibilities of property owners sharing a well and water distribution system.
Parties Involved The agreement is between a supplying party (owner of the well) and a supplied party (user of the well).
Annual Fee The supplied party must pay an annual fee for the use of the well, with specific amounts detailed in the agreement.
Shared Expenses Both parties are responsible for half of the operational and maintenance costs of the well and water distribution system.
Easements Each party grants easements for necessary construction and maintenance of the well and water system.
Termination Conditions The agreement can be terminated if the well becomes contaminated or if an alternative water source becomes available.
Dispute Resolution Any disputes under the agreement must be resolved through binding arbitration, following American Arbitration Association rules.
Legal Compliance The agreement must comply with state laws governing shared water systems, which vary by state.
Perpetual Term The term of the agreement is perpetual, unless terminated under specified conditions.

Frequently Asked Questions

What is a Shared Well Agreement?

A Shared Well Agreement is a legal document that outlines the terms and conditions for sharing a well and its water distribution system between two or more property owners. This agreement ensures that all parties have a clear understanding of their rights and responsibilities regarding the use and maintenance of the well.

Who are the parties involved in the agreement?

The agreement typically involves two main parties: the "supplying party," who owns the property with the well, and the "supplied party," who receives water from that well. Each party's rights and obligations are detailed within the agreement.

What are the key responsibilities of the supplied party?

The supplied party has several key responsibilities, including:

  • Paying an annual fee for the use of the well and water distribution system.
  • Contributing to the costs of operation and maintenance of the well.
  • Promptly paying their share of energy costs for the pumping equipment.
  • Maintaining their own water pipes or mains serving their dwelling.

What happens if the well becomes contaminated?

If the well becomes contaminated or no longer provides sufficient water, the rights and obligations outlined in the agreement will cease. The parties may then seek alternative water sources, and the agreement will terminate under specific conditions.

How are costs for maintenance and repairs determined?

Costs for maintenance and repairs are typically shared equally between the supplying party and the supplied party. Each party will pay half of any necessary expenses, which may include electricity for pumping and repairs to the water distribution system.

Can landscaping or improvements be made on the property?

Landscaping or improvements cannot be made in a way that would impair the use of easements described in the agreement. Any changes must respect the rights of all parties involved in the shared well system.

What happens if a party wishes to terminate their participation?

If a party wishes to terminate their participation in the agreement, they must file a written statement of termination with the local recording office. After termination, they will lose their right to use the well and must disconnect their water supply from the system.

How are disputes resolved under the agreement?

Disputes arising from the agreement are resolved through binding arbitration. If the parties cannot agree on an arbitrator, each party selects one, and those two arbitrators will choose a third to arbitrate the dispute. This process is governed by the rules of the American Arbitration Association.

Misconceptions

Understanding the Shared Well Agreement can be challenging, and misconceptions often arise. Here are five common misunderstandings about this important document:

  • Misconception 1: The Shared Well Agreement is only necessary for new properties.
  • This is not true. Even existing properties that share a well should have a formal agreement in place. It helps clarify the rights and responsibilities of each party, ensuring everyone understands their obligations and can avoid disputes.

  • Misconception 2: The supplying party is responsible for all costs related to the well.
  • In reality, both parties share the costs associated with the well and water distribution system. This includes maintenance, repairs, and energy costs. The agreement specifies how these expenses are divided, promoting fairness and cooperation.

  • Misconception 3: The agreement is permanent and cannot be changed.
  • While the Shared Well Agreement is designed to be long-lasting, it can be amended or terminated under certain conditions. If all parties agree, they can modify the terms or even dissolve the agreement if a new water source becomes available.

  • Misconception 4: Only the supplying party has rights to the well.
  • This is incorrect. The agreement grants both parties the right to draw water from the well for domestic use. However, it also sets clear boundaries, such as prohibiting the use of water for filling swimming pools, to ensure sustainable use.

  • Misconception 5: The agreement doesn’t require formal signatures.
  • On the contrary, for the Shared Well Agreement to be legally binding, it must be signed by all parties involved. Additionally, it often requires acknowledgment before a notary public, adding an extra layer of authenticity and protection for everyone.