Article Structure
The Shared Well Agreement form serves as a crucial document between two parties, ensuring a clear understanding of water rights and responsibilities when sharing a well system. This Agreement outlines the essential elements that help both the supplying party and the supplied party manage their shared water resource effectively. It contains provisions for the use of water from the well located on the supplying party's parcel, as well as cost-sharing arrangements for maintenance and operation. Specific obligations, such as annual fees and shared expenses for energy and repairs, are defined clearly to prevent misunderstandings. The document also includes stipulations for how emergencies should be handled and regulates the installation of improvements that may impact the well's operation. Importantly, it addresses what happens if the well becomes contaminated or if another water source becomes available, ensuring that all parties are protected. By establishing easements for necessary access and maintenance rights, the Agreement promotes cooperation between neighbors while setting boundaries to safeguard individual property rights. Overall, the Shared Well Agreement is a vital tool that fosters a responsible and beneficial partnership between property owners relying on a common water supply.
Shared Well Agreement Example
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 |
of |
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____. |
|
__________________________________________________
(Acknowledgment before a notary public, the form of which will vary by state)
Form Characteristics
| Fact Name | Description |
|---|---|
| Purpose of Agreement | The Shared Well Agreement aims to outline the rights and responsibilities of parties sharing a well system, ensuring that both properties have adequate water supply for domestic use. |
| Legal Compliance | Parties must verify that the water quality meets health standards set by the state health authority, ensuring the water supplied is safe for human consumption. |
| Cost Sharing | The agreement specifies how costs related to the operation and maintenance of the well and water distribution system are to be shared equally between the parties involved. |
| Emergency Access | In emergencies, parties have the right to access the other’s property to prevent loss of water supply, highlighting the importance of collaborative action for system failure. |
| Termination of Agreement | The agreement includes provisions for termination. A formal written statement must be filed with the appropriate county office to officially end participation in the Shared Well Agreement. |
| Binding Nature | This agreement affects both current and future owners of the parcels involved. It is binding and will continue until terminated as specified, ensuring lasting implications on property usage and responsibilities. |
Guidelines on Utilizing Shared Well Agreement
Next, filling out the Shared Well Agreement form will require careful attention to detail. Each section must be accurately completed to ensure that the rights and responsibilities of both parties are clearly defined. Here are the steps to follow.
- Date: Write the day and month at the top of the form where it states “this ____ day of __________.”
- Supplying Party Information: Fill in the name and address of the supplying party, including the street address, city, county, state, and zip code.
- Supplied Party Information: Enter the name and address of the supplied party, including the street address, city, county, state, and zip code.
- Parcel 1 Description: Provide the address and legal description of the supplying party’s property (Parcel 1).
- Parcel 2 Description: Provide the address and legal description of the supplied party’s property (Parcel 2).
- Annual Fee: Fill in the amount of the annual fee to be paid by the supplied party to the supplying party, as well as the amount for the current year, if different.
- Proportionate Share: Indicate that the supplied party agrees to pay their proportionate share of all expenses for the operation and maintenance of the water system.
- Cost of Energy: Mention how the supplied party will pay their proportionate share of the energy costs for the operation of the well.
- Meter Installation: Note that costs will be determined by a separate meter for each dwelling.
- Payment Schedule: Specify the due date for the energy cost payments each month.
- Easements: Describe any easements necessary for the construction, maintenance, and operation of the water system.
- Signatures: Ensure that all parties sign and date the agreement where indicated.
- Notarization: Include a space for acknowledgment before a notary public, as required by state law.
What You Should Know About This Form
What is a Shared Well Agreement?
A Shared Well Agreement is a legal document that outlines the rights and responsibilities of two or more property owners who share a water well and water distribution system. It ensures that all parties understand their obligations, including costs and maintenance associated with the well.
Who are the parties involved in the agreement?
The two primary parties involved are the "supplying party," who owns the well and water distribution system, and the "supplied party," who uses the water from the well for their property. Each party’s details must be included in the agreement, including their respective addresses.
What are the main components of the agreement?
The agreement includes terms regarding the use of the well, payment responsibilities for the water, maintenance obligations, and procedures for handling any disputes. It also addresses the rights to access necessary areas for maintenance and the handling of emergencies.
How is the cost of water determined?
The supplied party is obligated to pay an annual fee to the supplying party, as specified in the agreement. Additionally, the supplied party must cover their share of any operational and maintenance costs, which are typically split equally between the parties.
Can the supplied party use water for purposes other than domestic consumption?
No, the agreement specifies that the water drawn from the well is for domestic use only. It explicitly excludes the use of the well water for filling swimming pools or similar activities.
What happens if there is a disagreement between the parties?
In case of a dispute, the agreement requires that the issue be resolved through binding arbitration. If the parties cannot agree on an arbitrator, each must select one, with both choosing a third to make a final decision.
Is there a provision for emergencies?
The agreement allows each party to address emergency situations, such as a failure of the water system to deliver water. In such events, they have the right to access the relevant property to rectify the situation without prior consent from the other party.
What happens if another water source becomes available?
If an alternative source of water becomes available, the obligations under the Shared Well Agreement may cease. The parties involved will be required to make necessary connections to the new water source within a reasonable timeframe as outlined in the agreement.
How can a party terminate their participation in the agreement?
To terminate participation, a written notice of termination must be filed with the local county office. Upon termination, the party must disconnect their connection to the well and will no longer have any rights to its use, nor will they be responsible for future maintenance expenses.
Is the agreement perpetual?
Yes, the terms of the Shared Well Agreement are intended to be perpetual, unless otherwise specified. However, the rights and obligations can change if parties execute a written termination notice.
Common mistakes
Filling out the Shared Well Agreement form correctly is crucial for ensuring that both parties understand their rights and obligations. A common mistake is not providing complete information in the personal details section. Omitting any part of the address or the name of either party can lead to confusion and potential disputes down the line. It is important to double-check that all names, addresses, and contact information are accurate and up-to-date.
Another frequent error involves failing to provide a clear legal description of the properties involved. Both "Parcel 1" and "Parcel 2" must be precisely detailed. If this section is left blank or filled out vaguely, it risks future misunderstandings regarding property boundaries and water rights. This description is pivotal for identifying which properties are entitled to access the water supply.
Misunderstanding the financial responsibilities outlined in the agreement is also a concern. Some individuals neglect to confirm the annual fee and the details surrounding shared maintenance costs. It is essential to clearly specify payment amounts and deadlines to avoid any confusion or conflict in the future. Ensure that all monetary obligations are explicitly documented, as incomplete information may result in various disputes regarding payments.
Moreover, it is important to recognize the significance of obtaining consent for expenditures. Party members can mistakenly overlook the clause that requires agreement before incurring any costs for maintenance or improvements. This oversight can lead to one party spending money on repairs without the other's approval, creating resentment or legal challenges later on.
People often forget to assess the implications of the easements described in the agreement. Failing to detail these easements can hinder necessary access for maintenance tasks. Specific easement descriptions are crucial to maintain proper access for necessary repairs or maintenance to the well and its supporting systems. A lack of clarity here could result in restricted access and potential legal confrontations.
Finally, an alarming oversight occurs when parties neglect to identify how to handle the situation if the well becomes contaminated. Both parties must understand the process that follows contamination or a lack of adequacy in water supply. The agreement requires clear protocols to be established, ensuring both parties know their rights and obligations should the quality of water fall below acceptable standards.
Documents used along the form
The Shared Well Agreement serves as a detailed outline for the arrangements between multiple properties utilizing a single well system. Aside from this central document, several other forms and agreements are often associated with the shared use of water systems. These documents help clarify responsibilities, legal rights, and operational procedures related to the well and its maintenance.
- Bylaw Agreement: This document establishes the rules for governance among well users. It outlines the procedures for decision-making, dispute resolution, and modification of well management policies, ensuring that all parties are informed about their rights and responsibilities.
- Well Maintenance Agreement: This form specifies the duties involved in the upkeep of the well and the water distribution system. It may detail who is responsible for routine inspections, repairs, and the cost associated with such maintenance, helping to prevent misunderstandings regarding upkeep obligations.
- Easement Agreement: An easement provides legal permission for one party to access and use another party's land for a specific purpose, in this case, the maintenance and operation of the well. It ensures that both the supplying and supplied parties have clear rights to access necessary areas for repairs or improvements.
- Water Quality Assurance Document: This document ensures all parties agree on the standards for water quality. It often includes testing intervals, responsibility for testing, and protocols to follow if the water quality fails to meet established guidelines, which is crucial for safeguarding the health of the users.
Incorporating these additional documents effectively supports the primary Shared Well Agreement, creating a comprehensive framework for the cooperative use and management of shared water resources.
Similar forms
- Joint Use Agreement: Similar to the Shared Well Agreement, this document outlines the terms under which multiple parties can share a resource, such as land or equipment. It clarifies each party's rights and responsibilities regarding usage and maintenance.
- Water Rights Agreement: This document pertains to the allocation and use of water among parties. Like the Shared Well Agreement, it addresses how water resources are shared, ensuring that all parties understand their limits and obligations.
- Easement Agreement: An easement allows one party to use a portion of another's property for a specific purpose. The Shared Well Agreement includes easements to access and maintain the well system, similar to the access terms outlined in an easement agreement.
- Maintenance Agreement: This document governs the maintenance of shared facilities, much like the provisions in the Shared Well Agreement that specify maintenance responsibilities for the well and water distribution system.
- Licensing Agreement: In a licensing agreement, one party grants permission to another to use a property or resource. The Shared Well Agreement similarly grants rights to use the well for domestic water needs while outlining restrictions on its use.
- Co-Ownership Agreement: This agreement details the relationship between co-owners of property, outlining how decisions are made and costs shared, paralleling how the Shared Well Agreement allocates expenses and decision-making among parties sharing the well.
- Service Agreement: A service agreement can establish the terms under which services are provided to one or more parties, akin to the Shared Well Agreement, which stipulates the service of water supply and maintenance terms for participating properties.
- Property Management Agreement: This document outlines the management of shared property, detailing responsibilities and obligations. Similar to the Shared Well Agreement, it ensures transparency and accountability in managing shared resources.
Dos and Don'ts
When filling out the Shared Well Agreement form, it's important to follow certain guidelines to ensure clarity and compliance. Here’s a list of things you should and shouldn't do:
- Do use clear and legible handwriting or type the information to avoid any misunderstandings.
- Do ensure all necessary spaces are filled out completely, including names, addresses, and property descriptions.
- Do double-check all figures regarding payments and responsibilities to prevent future disputes.
- Do read through the entire agreement carefully to understand all the terms you are agreeing to.
- Don't leave any blank spaces unless instructed, as that could create ambiguity later.
- Don't rush through the process; take the necessary time to provide accurate and thorough information.
- Don't sign the document until you are confident that all terms and your responsibilities are clear.
- Don't overlook the need for a notary if required; ensure this step is completed to validate the agreement.
Misconceptions
Misconceptions about the Shared Well Agreement can lead to misunderstandings between parties. Here are seven common misconceptions:
- Anyone can access the well. The Agreement explicitly states that only the parties involved and their respective households have the right to draw water from the well. Unauthorized access is not permitted.
- Costs are fixed and non-negotiable. While the Agreement outlines specific fees, parties can negotiate terms before signing. Open communication can lead to adjustments that better suit everyone's needs.
- All maintenance costs are equally shared. The parties share operational costs; however, each party is responsible for maintaining the pipes serving their respective properties. Understanding these delineations can prevent disputes.
- The Agreement lasts forever. The term is essentially perpetual but can be terminated. Parties can formally withdraw by filing a statement, ending their obligations under the Agreement.
- Emergency repairs can wait. The Agreement allows any party to address emergencies without prior consent, emphasizing the urgency of situations that impact water delivery.
- Water quality is guaranteed indefinitely. If the well becomes contaminated or inadequate, the Agreement ceases. Regular testing and communication about water quality are essential to ensure safety.
- Disputes must go to court. The Agreement requires disputes to be resolved through binding arbitration, which can be a quicker and less expensive option than court proceedings.
Understanding these points promotes a smoother experience when entering into a Shared Well Agreement.
Key takeaways
Here are some key takeaways for understanding and using the Shared Well Agreement form:
- The Agreement outlines the rights and responsibilities of both the supplying and supplied parties regarding well water use.
- Both parties must provide correct information about their properties, ensuring clear legal descriptions of each parcel involved.
- An annual fee will be charged for water usage, and this must be paid on time to avoid interruption of service.
- Maintenance costs will be split equally between the parties, promoting fairness in upkeep and repairs.
- Only the designated properties can draw water from the well, ensuring that unauthorized users do not access the system.
- In case of any emergency, each party has the right to access the other's property to resolve urgent water supply issues.
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