Article Structure
The Shared Well Agreement form is a crucial document for property owners who wish to collaboratively utilize a single well for their water needs. It outlines the rights and responsibilities of the parties involved, specifically the supplying party and the supplied party, in relation to the well and the associated water distribution system. This agreement is essential for ensuring that both parties have access to a reliable water supply for domestic use while also addressing the financial obligations related to the maintenance and operation of the well. Key components of the form include provisions for annual fees, shared costs for repairs and maintenance, and stipulations regarding the use of water. Additionally, it sets forth the terms for easements, emergency access, and the process for terminating the agreement should circumstances change, such as contamination of the well or the availability of an alternative water source. By clearly defining these elements, the Shared Well Agreement serves to protect the interests of all parties involved, ensuring a harmonious and efficient use of the shared resource.
Form 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
parcel necessary for system operation, maintenance, replacement, improvements, inspection or testing, damaged as a result of repair of the well or water distribution system maintenance will be borne by the owner of the affected parcel, except that costs to remove and replace common boundary fencing or walls damaged as a result of repair shall be shared equally between or among parties so damaged.
4.That each of the parties hereby agrees that they will promptly repair, maintain and replace all water pipes or mains serving their respective dwellings.
5.That the consent of all parties to pay a proportionate share of costs shall be obtained prior to embarking upon expenditures for system maintenance, replacement or improvement, except in emergency situations.
6.That the supplied party shall pay to the supplying party his proportionate share for the cost of energy for the operation of the pumping equipment. This cost shall be determined by a separate meter upon each dwelling and for each parcel.
7.That it is the agreement of the parties hereto that the payment for energy cost shall be made not later than the _________day of each succeeding month during the term of this Agreement. In the event that any such payment remains unpaid for a period of ____days, the supplying party may terminate the supply of water to the supplied party until all arrearages in payment are received by the supplying party.
8.That each of the parties to this Agreement does hereby grant to the other, his heirs, successors and assigns, such easements over, across and through the respective parcels as shall be reasonably necessary for the construction of the well, maintenance of water pipes, pumping equipment, mains, electrical wiring and conduit consistent with the purposes of this Agreement. These easements are described below, to wit:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
(Describe easements, if any)
10.That no party may install landscaping or improvements that will impair the use of said easements.
11.That each party shall have the right to act to correct an emergency situation and shall have access to the pertinent parcel in the absence of the other. An emergency situation shall be defined as
the failure of any shared portion of the system to deliver water upon demand.
12.That only those parcels of real estate hereinabove described and the dwellings located thereon shall be permitted to receive water from said well and pumping equipment; and each of the parties hereto does hereby covenant and agree that he/she will not allow or permit other persons, other than household guests, to take, draw, use or receive water from the well, nor permit other persons to connect to the pipes or mains serving his/her respective parcel.
13.That in the event the referenced well shall become contaminated and shall no longer supply
water suitable for domestic consumption, or shall no longer supply water adequate for the needs of all relevant parties, or in the event that another source of water shall become available to the respective parcels, then the rights and obligations of the parties created by this Agreement shall cease and terminate in accordance with the terms and conditions hereinafter described.
14.That upon the availability of such other source of water, it is contemplated that a reasonable time shall be allowed to effectuate the necessary connections to the new source.
15.That the respective rights and obligations of the parties shall continue until the parties who wish to terminate their participation in the Well Agreement have executed and filed a written statement of termination at the _____________________________ (office where deeds in your state are recorded) of the County of ____________ and the state of ____________________. Upon termination of participation in this Agreement, the owner and occupant of each residence which is terminated from the Agreement shall have no further right to the use of the well. The terminated parties shall disconnect their respective lateral connection from said well system and shall have no further obligation to pay or collect for maintenance and related expenses incurred thereafter. The costs of disconnection from the well and water system shall be borne by the owner of the pertinent parcel.
19.That the term of this Agreement shall be perpetual, except as herein limited.
20.That the benefits and burdens of this Agreement shall constitute a covenant running with the parcels of land herein described and shall be binding upon the heirs, successors in title and assigns of the parties hereto.
21. Any dispute under this Agreement shall be required to be resolved by binding arbitration |
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the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one |
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arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall |
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arbitrate said dispute. The arbitration shall be governed by the rules of the American |
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Arbitration Association then in force and effect. |
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Witness our signatures this the ____ day of __________, 20____. |
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__________________________________________________
(Acknowledgment before a notary public, the form of which will vary by state)
Document Specifications
| Fact Name | Description |
|---|---|
| Purpose | The Shared Well Agreement establishes the rights and responsibilities of parties sharing a well and water distribution system for domestic use. |
| Parties Involved | The agreement is made between a "supplying party," who owns the well, and a "supplied party," who receives water from the well. |
| Cost Sharing | Both parties share the costs associated with maintenance and operation of the well, including an annual fee and energy costs. |
| Water Quality | The water from the well must pass a quality analysis by the state health authority to ensure it is safe for human consumption. |
| Emergency Access | In emergencies, parties can access each other's parcels to address issues related to the water system without prior consent. |
| Governing Law | The agreement is governed by the laws of the state where the properties are located, which may vary by state. |
Steps to Filling Out Shared Well Agreement
Filling out the Shared Well Agreement form is a straightforward process that requires careful attention to detail. This agreement outlines the rights and responsibilities of both parties regarding the use of a shared well system. After completing the form, both parties will need to sign it and may also require notarization to ensure its validity.
- Begin by entering the date at the top of the form where indicated: "this ____ day of __________."
- Fill in the name of the supplying party, including their street address, city, county, state, and zip code.
- Next, enter the name of the supplied party, along with their complete address in the same format.
- For Parcel 1, provide the street address, city, county, state, and zip code of the property owned by the supplying party.
- Include a legal description of Parcel 1 in the designated space.
- For Parcel 2, repeat the process by entering the street address, city, county, state, and zip code of the property owned by the supplied party.
- Provide a legal description of Parcel 2 in the specified area.
- Fill in the annual fee amount for the use of the well and water distribution system, as well as the payment amount for the current year.
- Indicate the due date for the monthly energy cost payment and the number of days before termination for unpaid bills.
- Describe any easements necessary for the construction and maintenance of the well and water distribution system.
- Ensure that all parties sign the agreement at the bottom, indicating their consent to the terms outlined.
- Consider having the agreement notarized, as this may be required for legal validity in your state.
More About Shared Well Agreement
What is a Shared Well Agreement?
A Shared Well Agreement is a legal document that outlines the terms and conditions under which two or more parties can share a well and its water distribution system. It specifies the rights and responsibilities of each party, including how costs for maintenance and water usage will be shared. This agreement is essential for ensuring that all parties have access to a reliable water source while also protecting their interests.
Who are the parties involved in the agreement?
The agreement typically involves two parties: the "supplying party," who owns the well and water distribution system, and the "supplied party," who receives water from the well. Each party must provide their legal names and addresses within the agreement to clarify their roles and responsibilities.
What are the main obligations of the supplied party?
The supplied party is responsible for paying an annual fee for the use of the well and for covering a proportionate share of the operational and maintenance costs associated with the water distribution system. Payments are typically due on or before January 15 each year. Additionally, the supplied party must maintain their own water pipes and promptly address any issues that arise.
How are costs for maintenance and repairs shared?
Costs for maintenance and repairs are generally shared equally between the supplying party and the supplied party. Each party will pay half of the total expenses incurred for necessary repairs or replacements. This includes costs related to electricity for pumping water, as well as any repairs needed for the water distribution system.
What happens if the well becomes contaminated?
If the well becomes contaminated or is no longer able to supply adequate water, the rights and obligations outlined in the agreement will terminate. In such cases, the parties may need to seek an alternative water source. The agreement allows for a reasonable time frame to make the necessary connections to a new water source if one becomes available.
How can the agreement be terminated?
The agreement can be terminated by any party wishing to withdraw from the arrangement. This requires executing and filing a written statement of termination at the appropriate county office. Once terminated, the party will no longer have the right to use the well and must disconnect their water supply from the system. Any costs associated with disconnection will be the responsibility of the terminating party.
Common mistakes
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Incomplete Information: One common mistake is leaving out crucial details. Ensure all fields are filled in completely, including names, addresses, and property descriptions. Missing information can lead to misunderstandings or legal issues later on.
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Incorrect Legal Descriptions: Providing inaccurate or vague legal descriptions of the properties involved can create confusion. It's essential to use precise language and details as required in the agreement to avoid disputes about property boundaries or rights.
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Ignoring Payment Terms: Failing to clearly outline payment amounts and deadlines is another frequent error. Be specific about annual fees and any other costs associated with the well and water distribution system. This helps prevent disagreements regarding financial responsibilities.
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Not Considering Future Changes: Many people overlook the need to address future scenarios, such as changes in ownership or the availability of alternative water sources. Including clauses that account for these possibilities can save time and trouble down the line.
Documents used along the form
The Shared Well Agreement is a critical document for parties sharing a water supply. However, several other forms and documents are often utilized in conjunction with this agreement to ensure clarity and compliance among the involved parties. Below is a list of these related documents, each serving a specific purpose in the context of shared water rights and responsibilities.
- Water Quality Testing Report: This document provides evidence that the water from the well meets safety standards for human consumption. It typically includes the results of tests conducted by a certified laboratory, ensuring that all parties are aware of the water's quality.
- Easement Agreement: This document outlines the rights of parties to access each other’s property for maintenance and repair of the well and water distribution system. It specifies the boundaries and conditions under which easements can be used, helping to prevent disputes over property access.
- Maintenance Agreement: This agreement details the responsibilities of each party regarding the upkeep of the well and water distribution system. It may outline who is responsible for specific repairs and how costs will be shared, ensuring that all parties are on the same page regarding maintenance duties.
- Termination Notice: This document is used when a party wishes to withdraw from the Shared Well Agreement. It formally notifies the other parties of the intention to terminate participation, specifying the effective date and any obligations that remain after withdrawal.
- Cost Sharing Agreement: This document provides a detailed breakdown of how costs related to the well and water system will be divided among the parties. It ensures transparency and fairness in financial responsibilities, addressing expenses such as maintenance, repairs, and utility costs.
- Dispute Resolution Agreement: This document outlines the process for resolving conflicts that may arise between the parties regarding the Shared Well Agreement. It may specify mediation or arbitration procedures, promoting a collaborative approach to conflict resolution.
These documents play a vital role in the effective management of shared water resources. By clearly defining roles, responsibilities, and processes, they help to minimize potential conflicts and ensure a sustainable water supply for all parties involved.
Similar forms
The Shared Well Agreement form is similar to a Joint Use Agreement. Both documents outline the rights and responsibilities of parties sharing a resource. In a Joint Use Agreement, parties agree on how to use a shared facility or service, such as a road or a recreational area. This agreement typically details maintenance responsibilities, cost-sharing, and dispute resolution, just like the Shared Well Agreement does for water access and management.
Another document akin to the Shared Well Agreement is a Water Supply Agreement. This type of contract specifies the terms under which one party supplies water to another. It includes details about the quantity of water, quality standards, and payment terms. Similar to the Shared Well Agreement, it seeks to clarify obligations and ensure both parties understand their rights regarding water access.
A Partnership Agreement also shares similarities with the Shared Well Agreement. In both cases, parties come together to achieve a common goal—whether it’s sharing water resources or running a business. Each document outlines the contributions, responsibilities, and profit-sharing arrangements of the involved parties, ensuring transparency and accountability.
The Easement Agreement is another relevant document. This agreement grants one party the right to use a portion of another party's property for a specific purpose. In the context of the Shared Well Agreement, easements allow access for maintenance of the well and water distribution system. Both documents emphasize the importance of defined rights and responsibilities regarding property use.
Additionally, a Maintenance Agreement is similar in its focus on upkeep responsibilities. This document outlines how shared facilities, like a well, will be maintained and who is responsible for costs. Just as the Shared Well Agreement specifies maintenance obligations for the water system, a Maintenance Agreement ensures that all parties are aware of their duties to keep shared resources in good condition.
The Lease Agreement can also be compared to the Shared Well Agreement. While a Lease Agreement typically involves renting property, it often includes clauses about shared utilities and maintenance. Both agreements require clear communication about costs and responsibilities, ensuring that all parties understand their obligations to each other regarding shared resources.
A Cooperative Agreement is another document that resembles the Shared Well Agreement. Both agreements are formed to achieve mutual benefits and outline how resources will be shared. In a Cooperative Agreement, parties may collaborate on various projects, similar to how they collaborate on water usage in the Shared Well Agreement. Both documents emphasize cooperation and shared responsibility.
The Service Agreement is yet another similar document. This agreement defines the terms under which services are provided, including costs and responsibilities. In the case of the Shared Well Agreement, the service involves providing water. Both agreements focus on the expectations of service delivery and the obligations of each party to ensure smooth operations.
Moreover, a Homeowners Association (HOA) Agreement shares characteristics with the Shared Well Agreement. An HOA Agreement outlines the rules and responsibilities of property owners within a community, including shared amenities like wells. Both documents aim to maintain order and ensure that all parties adhere to agreed-upon standards for resource use and maintenance.
Finally, a Utility Service Agreement is similar in that it governs the provision of essential services. Like the Shared Well Agreement, it details the terms of service, payment obligations, and maintenance responsibilities. Both agreements are crucial for ensuring that all parties receive the necessary resources while understanding their respective duties in managing those resources.
Dos and Don'ts
When filling out the Shared Well Agreement form, it is essential to follow certain guidelines to ensure accuracy and clarity. Here are six important dos and don'ts:
- Do ensure all names and addresses are correctly filled out for both the supplying and supplied parties.
- Do include the legal description of the properties involved to avoid any ambiguity.
- Do clearly state the annual fee and payment deadlines to prevent misunderstandings.
- Do specify the proportionate share of maintenance costs for transparency.
- Don't leave any sections blank; incomplete information can lead to disputes later.
- Don't ignore the requirement for notarization; this step is crucial for the agreement's validity.
Misconceptions
Here are some common misconceptions about the Shared Well Agreement form:
- It's only for large properties. Many believe that a Shared Well Agreement is only necessary for large estates. In reality, even smaller properties can benefit from this agreement, especially if they share a water source.
- It’s a one-time agreement. Some think that once the agreement is signed, it’s set in stone forever. However, these agreements can be modified or terminated under specific conditions, allowing for flexibility as needs change.
- All costs are shared equally. Many assume that all expenses related to the well are split down the middle. In fact, costs can vary based on usage and specific agreements between the parties involved.
- Water quality is guaranteed. Some people believe that signing the agreement ensures the water quality will always be safe. While the agreement states that the water has been tested, ongoing maintenance and testing are essential to ensure continued safety.
- Only the supplying party is responsible for maintenance. There’s a misconception that the supplying party alone handles all maintenance tasks. In truth, both parties are responsible for their respective shares of maintenance and repair costs.
- Guests can use the water freely. Many think that household guests can use the well water without restrictions. However, the agreement specifies that only residents of the properties are allowed to draw water, limiting access to guests.
Key takeaways
When filling out and using the Shared Well Agreement form, keep the following key takeaways in mind:
- Identify the Parties: Clearly list the supplying party and the supplied party with accurate names and addresses. This ensures that all parties are correctly represented in the agreement.
- Define the Properties: Provide detailed legal descriptions for both Parcel 1 and Parcel 2. This information is essential for establishing ownership and rights to the well and water distribution system.
- Understand Financial Obligations: Each party must be aware of their financial responsibilities, including annual fees and shared maintenance costs. Timely payments are crucial to avoid interruptions in water supply.
- Emergency Protocols: The agreement outlines procedures for handling emergencies, such as system failures. Knowing these protocols can prevent misunderstandings and ensure quick resolutions.
- Termination Conditions: Familiarize yourself with the conditions under which the agreement can be terminated. Understanding these terms will help parties navigate future changes in water supply needs or property ownership.