Download Shared Well Agreement Template

1. Incomplete Information: Many individuals fail to fill out all required fields, such as names, addresses, or specific details about the properties involved. This can lead to delays or complications in the agreement.

2. Incorrect Legal Descriptions: Providing an inaccurate legal description of the properties can create confusion. It's crucial to ensure that the legal descriptions are precise and match the official records.

3. Missing Signatures: All parties must sign the agreement for it to be valid. Forgetting to include a signature can render the document unenforceable.

4. Ignoring Payment Details: Some people overlook the specifics regarding payment amounts or deadlines. Clearly stating these details is essential to avoid misunderstandings later.

5. Neglecting Emergency Procedures: Failing to outline emergency procedures can lead to confusion during urgent situations. It's important to specify what constitutes an emergency and how parties should respond.

6. Overlooking Easements: Not describing necessary easements can cause future disputes. Clearly defining the easements required for maintenance and operation of the well system is vital.

7. Failure to Review Terms: Some individuals sign the agreement without fully understanding the terms. It’s advisable to read through all conditions carefully to ensure that everyone is on the same page.

Here are some key takeaways about filling out and using the Shared Well Agreement form:

• Identify the Parties: Clearly state the names and addresses of both the supplying party and the supplied party. Accurate information is essential for legal clarity.
• Property Descriptions: Provide detailed legal descriptions of both parcels involved. This helps avoid any confusion regarding the properties connected to the well.
• Water Usage Rights: Understand that both parties have the right to draw water from the well for domestic use only. Other uses, such as filling swimming pools, are not permitted.
• Cost Sharing: Be aware that both parties must share the costs associated with the well's operation and maintenance. This includes an annual fee and any necessary repairs.
• Emergency Access: Each party has the right to access the well in case of an emergency. Define what constitutes an emergency clearly in the agreement.
• Termination Procedures: Know the process for terminating the agreement, including the need to file a written statement at the appropriate county office. This ensures that all parties are aware of their rights and obligations.

What is a Shared Well Agreement?

A Shared Well Agreement is a legal document that outlines the rights and responsibilities of two or more parties who share a well for water supply. This agreement is crucial for ensuring that all parties understand how the well will be used, maintained, and financed. It typically includes details about the well's location, the parties involved, and the terms for sharing water and associated costs. By formalizing these arrangements, the agreement helps prevent disputes and promotes a harmonious relationship among neighbors who rely on the same water source.

Who are the parties involved in a Shared Well Agreement?

The parties involved in a Shared Well Agreement are typically referred to as the "supplying party" and the "supplied party." The supplying party owns the property where the well is located, while the supplied party owns the property that will receive water from the well. Each party's rights and obligations regarding the use of the well and the water distribution system are clearly defined in the agreement. This structure ensures that both parties have a clear understanding of their roles and responsibilities.

What are the costs associated with the Shared Well Agreement?

Costs associated with a Shared Well Agreement can include an annual fee for the use of the well and water distribution system, as well as a proportionate share of ongoing expenses for operation and maintenance. Each party typically pays half of these costs, which may cover electricity for pumping, repairs, and other necessary maintenance. It's important to note that any costs related to the removal or replacement of site improvements on individual parcels, required for system operation, will generally be borne by the owner of the affected parcel. Clarity regarding these financial obligations helps ensure that all parties are on the same page.

What happens if the well becomes contaminated?

If the well becomes contaminated and is no longer suitable for domestic consumption, or if it cannot meet the water needs of the parties involved, the Shared Well Agreement stipulates that the rights and obligations of the parties will cease. In such cases, the agreement allows for the possibility of connecting to an alternative water source. This provision is crucial for ensuring that the parties have a plan in place for maintaining access to safe and adequate water, even if the original well fails to provide it.

How can a party terminate their participation in the Shared Well Agreement?

A party wishing to terminate their participation in the Shared Well Agreement must execute and file a written statement of termination at the appropriate county office where deeds are recorded. Once this process is completed, the terminated party will no longer have the right to use the well and must disconnect their lateral connection from the water system. The costs associated with this disconnection will be the responsibility of the owner of the parcel that is terminating participation. This structured approach to termination ensures that all parties are treated fairly and that the water supply system remains functional for those who continue to participate.

When entering into a Shared Well Agreement, several other documents may be necessary to ensure clarity and legal compliance. These documents help define the rights and responsibilities of all parties involved. Here’s a list of commonly used forms and documents that often accompany the Shared Well Agreement.

• Property Deed: This document proves ownership of the properties involved in the agreement. It includes legal descriptions and is essential for verifying the parties’ rights to the land.
• Water Quality Test Results: A report from a certified laboratory showing that the well water meets safety standards for human consumption. This is crucial for ensuring the health and safety of all users.
• Easement Agreement: This document outlines the rights to access and use portions of the property for the well and water distribution system. It details the specific areas where easements apply.
• Maintenance Agreement: An agreement that specifies how maintenance and repairs will be handled for the well and water system. It can clarify who is responsible for what costs and actions.
• Financial Agreement: This document outlines how costs related to the well and water system will be shared among the parties. It can specify payment schedules and methods.
• Trailer Bill of Sale: A crucial document that finalizes the sale of a trailer and provides proof of ownership transfer. To learn more about this essential form, visit azformsonline.com/trailer-bill-of-sale/.
• Termination Agreement: A document that details the process for any party wishing to exit the Shared Well Agreement. It outlines the steps for disconnection and any remaining obligations.
• Insurance Policy: A document showing that the parties have adequate insurance coverage for potential liabilities related to the well and water system. This protects all parties from unforeseen issues.
• Disclosure Statement: This document provides any necessary disclosures about the well's condition, previous issues, or limitations. Transparency helps prevent disputes later on.
• Arbitration Agreement: This outlines the process for resolving disputes that may arise from the Shared Well Agreement. It specifies how arbitration will be conducted and can help avoid lengthy litigation.

Having these documents in place can significantly enhance the effectiveness of a Shared Well Agreement. They provide a comprehensive framework that protects the interests of all parties involved and ensures smooth operations of the shared water system.