Overview
Misconceptions
Here are five common misconceptions about the Shared Well Agreement form:
- Misconception 1: The agreement is only for new constructions.
- Misconception 2: All parties must share costs equally.
- Misconception 3: The supplying party has complete control over the well.
- Misconception 4: The agreement can be terminated easily.
- Misconception 5: The agreement does not cover maintenance responsibilities.
This is not true. The Shared Well Agreement can apply to existing properties as long as they are connected to the well system.
While the agreement outlines shared expenses, costs are typically divided based on usage or specific agreements made between parties.
Both parties have rights and responsibilities outlined in the agreement, ensuring that decisions regarding the well are made collaboratively.
Termination requires a written statement filed with the appropriate county office, making it a formal and structured process.
The agreement clearly states that both parties are responsible for maintaining the water distribution system, ensuring proper upkeep.
What to Know About This Form
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. This agreement specifies the rights and responsibilities of each party regarding the use, maintenance, and costs associated with the well, ensuring that all parties have access to water for domestic use.
Who are the parties involved in a Shared Well Agreement?
The parties involved in a Shared Well Agreement typically include the "supplying party," who owns the property where the well is located, and the "supplied party," who receives water from that well. Each party must provide their respective property addresses and agree to the terms of the agreement.
What are the main responsibilities outlined in the agreement?
The agreement details several key responsibilities. Each party must pay an annual fee for the use of the well and share the costs for maintenance and operation. Additionally, they must promptly repair and maintain the water pipes serving their properties. Consent from all parties is required for any expenditures related to system maintenance, unless it’s an emergency.
What happens if one party does not pay their share of costs?
If a party fails to pay their share of costs for energy or maintenance, the supplying party has the right to terminate water supply until the overdue payments are received. This ensures that all parties remain accountable for their financial obligations under the agreement.
Can the agreement be terminated?
Yes, the agreement can be terminated. However, this requires a written statement of termination to be filed with the appropriate county office. Once a party terminates their participation, they will no longer have the right to use the well and must disconnect from the water system. The costs of disconnection are the responsibility of the terminating party.
What happens if the well becomes contaminated?
If the well becomes contaminated or no longer provides adequate water, the rights and obligations of the parties under the agreement will cease. In such cases, the parties may seek an alternative water source, and a reasonable time will be allowed to make necessary connections to that new source.
How are disputes resolved under the agreement?
Disputes arising from the Shared Well Agreement are to be resolved through binding arbitration. Each party selects an arbitrator, and those arbitrators choose a third. The arbitration process is governed by the rules of the American Arbitration Association, ensuring a fair resolution to any conflicts that may arise.
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How to Use Shared Well Agreement
Completing the Shared Well Agreement form is an important step for both the supplying party and the supplied party. This document outlines the rights and responsibilities related to the shared water well and distribution system. Follow the steps below to fill out the form accurately.
- Begin by entering the date at the top of the form. Write the day in the blank space provided and the month in the next blank space.
- In the first section, fill in the name of the supplying party and their address. Make sure to include the street address, city, county, state, and zip code.
- Next, write the name of the supplied party and their address in the same format as above.
- Locate the section that describes Parcel 1, the property owned by the supplying party. Fill in the address and provide a legal description of the property in the designated space.
- Now, move to the section for Parcel 2, owned by the supplied party. Fill in the address and provide the legal description for this property as well.
- In the following sections, read through the terms and conditions carefully. Fill in any blanks as needed, such as the annual fee amount and the due dates for payments.
- When you reach the easement section, describe any easements that may be necessary for the well and water distribution system.
- Review the responsibilities outlined in the agreement, including maintenance and repair obligations. Make sure you understand these before proceeding.
- In the final section, both parties should sign and date the form. Ensure that the signatures are witnessed, as required by your state’s notary public laws.
After completing the form, it is advisable to keep copies for both parties. This will ensure that everyone is aware of their rights and obligations regarding the shared well and water distribution system.