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Contents

The Shared Well Agreement form is an essential document for property owners who wish to collaboratively utilize a single well for their water supply. This agreement outlines the responsibilities and rights of both the supplying party, who owns the well, and the supplied party, who benefits from its use. It details the legal descriptions of the properties involved, ensuring clarity about the parcels that will share the water resource. The form emphasizes the importance of maintaining a reliable water distribution system, specifying that both parties will contribute to the costs associated with operating and maintaining the well. It also addresses the necessary provisions for emergency situations, the allocation of expenses, and the conditions under which the agreement can be terminated. Furthermore, it provides guidelines for future owners, ensuring that the terms remain binding and beneficial for all involved. With a focus on equitable use and mutual cooperation, the Shared Well Agreement serves as a crucial framework for managing shared water resources effectively.

How to Use Shared Well Agreement

Once you have the Shared Well Agreement form ready, you can begin filling it out. This process involves providing specific information about the parties involved and the properties connected to the well. Follow these steps to complete the form accurately.

  1. Write the date at the top of the form where it says "this ____ day of __________."
  2. Fill in the name of the supplying party and their address in the designated spaces.
  3. Enter the name of the supplied party and their address in the corresponding areas.
  4. Provide the address of Parcel 1, which is the property owned by the supplying party, along with its legal description.
  5. Next, fill in the address of Parcel 2, owned by the supplied party, and include its legal description.
  6. In the section regarding the annual fee, write the amount to be paid each year and the amount for the current year, if applicable.
  7. Specify the day of the month by which the energy cost payment must be made.
  8. Indicate the number of days after which the supplying party can terminate water supply for unpaid bills.
  9. Describe any easements necessary for the well and water distribution system in the provided area.
  10. Sign and date the form at the bottom, ensuring all parties involved have done the same.

After completing the form, it’s important to ensure all parties have a copy. They should also consider having the document notarized for added validity. This will help in maintaining clear communication and understanding among everyone involved in the agreement.

Key takeaways

When filling out and using the Shared Well Agreement form, it is essential to keep several key points in mind. Here are ten important takeaways:

  1. Identify the Parties: Clearly state the names and addresses of both the supplying party and the supplied party. This ensures that all involved parties are correctly recognized in the agreement.
  2. Legal Descriptions: Provide detailed legal descriptions of both Parcel 1 and Parcel 2. Accurate descriptions prevent future disputes regarding property boundaries and rights.
  3. Water Usage Rights: Understand that the agreement grants common rights to draw water from the well for domestic use. However, this excludes filling swimming pools, which should be clearly stated.
  4. Annual Fees: The supplied party must pay an annual fee for water usage. Ensure that this fee is specified and that payment deadlines are clear to avoid misunderstandings.
  5. Shared Expenses: Be aware that both parties are responsible for half of the costs related to the operation and maintenance of the well and water distribution system.
  6. Emergency Access: Each party has the right to access the other’s property in case of an emergency. Define what constitutes an emergency, such as a failure to deliver water.
  7. Easements: Grant easements as necessary for the construction and maintenance of the well and water system. Be explicit about the locations and extent of these easements.
  8. Contamination Clause: Include provisions for what happens if the well becomes contaminated or inadequate. This ensures clarity on the termination of rights and obligations in such cases.
  9. Termination Process: Outline the process for terminating the agreement. This includes filing a written statement of termination at the appropriate county office.
  10. Dispute Resolution: Agree to resolve disputes through binding arbitration. This can expedite conflict resolution and avoid lengthy court proceedings.

By paying attention to these key elements, parties can create a clear and effective Shared Well Agreement that protects their rights and responsibilities.

Common mistakes

Filling out the Shared Well Agreement form can be a straightforward process, but many people make mistakes that can lead to complications down the line. One common error is failing to provide complete and accurate addresses for both the supplying and supplied parties. This information is crucial, as it establishes the identities and locations of the parties involved. Missing or incorrect addresses can create confusion and may even render the agreement unenforceable.

Another frequent mistake is neglecting to include the legal descriptions of the properties involved. These descriptions are essential for defining the parcels of land that will be serviced by the well. Without them, it can be difficult to determine which properties are covered by the agreement, potentially leading to disputes in the future.

People often overlook the importance of specifying the annual fee for the use of the well and water distribution system. Leaving this section blank or failing to agree on a specific amount can lead to misunderstandings about payment obligations. It’s vital to clearly state the fee and the payment schedule to avoid any financial disputes later.

In addition, many individuals fail to discuss and agree upon the shared expenses for maintenance and operation of the water system. Not addressing how these costs will be divided can result in one party feeling burdened by unexpected expenses. Clear communication and agreement on these costs are key to maintaining a good relationship between the parties.

Another mistake is not obtaining consent from all parties before incurring costs for system maintenance or improvements. This can lead to disagreements about who is responsible for what expenses. Emergency situations may require immediate action, but for regular maintenance, it’s best to have a clear agreement in place.

Some people also forget to specify the terms regarding energy costs associated with operating the well. It’s essential to outline how these costs will be calculated and when payments are due. A lack of clarity in this area can lead to financial disputes and even service interruptions if payments are not made on time.

Additionally, individuals sometimes neglect to describe any easements necessary for the maintenance of the well and water distribution system. This oversight can hinder access to essential areas for repairs or inspections. Clearly defining these easements in the agreement is critical for ensuring that all parties can fulfill their obligations.

Another common error is allowing landscaping or improvements that impair the use of the easements. Parties may not realize that certain changes to their property can restrict access to the well or water system. It’s important to adhere to the stipulations in the agreement to avoid future complications.

Finally, some individuals may not fully understand the implications of terminating their participation in the agreement. It's crucial to follow the outlined procedure for termination, including filing the appropriate documents. Failing to do so can result in continued obligations and costs, even after one party has decided to withdraw from the agreement.

By being mindful of these common mistakes, parties can ensure a smoother process when filling out the Shared Well Agreement form. Taking the time to review and understand each section can prevent misunderstandings and foster a cooperative relationship between all parties involved.

Documents used along the form

A Shared Well Agreement is an important document that outlines the rights and responsibilities of parties sharing a well water system. Alongside this agreement, there are several other forms and documents that can be essential for ensuring clarity and compliance among all involved parties. Below is a list of these documents, each described briefly.

  • Property Deed: This document establishes ownership of the properties involved in the shared well agreement. It includes legal descriptions of the parcels and is crucial for confirming the rights of the supplying and supplied parties.
  • Water Quality Test Results: This report provides evidence that the water from the well is safe for human consumption. It is typically required by local health authorities and should be updated regularly to ensure compliance with health standards.
  • Transfer-on-Death Deed: This form allows property owners to designate beneficiaries to receive real estate upon their passing without probate, simplifying the transfer process. For more details, you can refer to Arizona PDFs.
  • Easement Agreement: This document grants the necessary rights for parties to access each other’s properties for the maintenance and operation of the well and water distribution system. It outlines the specific areas designated for such access.
  • Maintenance Agreement: This form details the responsibilities of each party regarding the upkeep of the well and associated systems. It specifies who is responsible for repairs and maintenance costs, ensuring shared accountability.
  • Termination Notice: This document is used when a party wishes to withdraw from the Shared Well Agreement. It must be filed with the appropriate county office to officially record the termination of rights and obligations.
  • Insurance Policy: This policy provides coverage for potential liabilities associated with the shared well system. It protects all parties against financial loss due to accidents or damages related to the water system.
  • Arbitration Agreement: This document outlines the process for resolving disputes that may arise from the Shared Well Agreement. It specifies the method of arbitration and the selection of arbitrators, promoting a fair resolution process.

These documents work together to create a comprehensive framework for managing shared water resources. Ensuring that all parties understand and maintain these records can prevent misunderstandings and foster a cooperative relationship among neighbors.

Frequently Asked Questions

What is a Shared Well Agreement?

A Shared Well Agreement is a legal document that outlines the rights and responsibilities of parties sharing a well and water distribution system. It ensures that all parties have access to water for domestic use while also detailing how costs for maintenance and operation will be shared. This agreement helps prevent disputes and clarifies expectations among the parties involved.

Who are the parties involved in a Shared Well Agreement?

The parties involved typically include a "supplying party," who owns the well and water distribution system, and one or more "supplied parties," who benefit from the water supplied by the well. Each party must be the owner of property that is connected to the water distribution system. Their respective rights and obligations are detailed in the agreement.

What are the key terms of the agreement?

The agreement contains several important terms, including:

  1. The right to draw water for domestic use.
  2. Annual fees for using the well and distribution system.
  3. Shared costs for maintenance and repairs.
  4. Emergency access provisions for urgent repairs.
  5. Termination conditions and procedures.

Each of these terms aims to ensure that all parties can effectively use the shared resource while maintaining fairness in responsibilities.

How are costs divided among the parties?

Costs associated with the operation and maintenance of the well and water distribution system are typically shared equally between the supplying party and the supplied parties. This includes expenses like electricity for pumping, repairs, and maintenance. Each party is responsible for paying their proportionate share promptly, and any emergency repairs may require immediate action.

What happens if the well becomes contaminated?

If the well becomes contaminated or no longer provides sufficient water, the rights and obligations under the agreement will cease. In such cases, parties may need to seek an alternative water source. The agreement anticipates that a reasonable time will be allowed for making necessary connections to the new water source.

Can the agreement be terminated?

Yes, the agreement can be terminated. A party wishing to withdraw must execute and file a written statement of termination with the appropriate county office. Upon termination, the party will no longer have the right to use the well and must disconnect their water supply. Costs associated with disconnection will be the responsibility of the party terminating their participation.

How are disputes resolved under the agreement?

Disputes arising from the agreement must be resolved through binding arbitration. Each party selects an arbitrator, and those arbitrators will choose a third. The arbitration process will follow the rules set by the American Arbitration Association. This method provides a structured way to resolve conflicts without resorting to litigation.