What are the benefits of having a written shared well agreement? Why not just have a verbal agreement? A well (pun intended) written well agreement provides well owners (“Grantors”) and the shared well users (“Grantees) assurances that their interests will be protected.
It will give the well owner enforcement against the other well users that they help pay for the maintenance, repair costs. And water and electricity.
grantors have an enforceable agreement for grantees to pay their fair share
Practical benefits to Grantors is that it increases the odds they will be reimbursed for the electricity, water consumption, and well repairs.
provides grantees a guaranteed source of water
Shared well agreements give assurances to people receiving water from the well. Without a written shared well agreement a well owner could deny access to anyone wishing to access the water.
amend or rewrite the well share agreement
Many of the existing well share agreements are old, inaccurate, and not reflect the desires of the current Grantor and Grantees. Most agreements have a provision that addresses the issues of amendments to an existing well agreement.
For example, it might read: “This agreement can only be modified in writing with a majority of the parties agreeing to the changes.” Or the agreement might require all parties to approve any modifications to the agreement.
Once the required number of parties to the existing agreement have approved the changes then they can be made. Or the parties may agree that now is the time to create an entirely new agreement. Negotiating a new agreement allows the parties to remove portions of the existing agreement, clarified, or entirely new provisions can be added.
Create a maintenance schedule. Proper maintenance of the well and its components will make it last longer and ultimately save the Parties money.
maintain well records
Details what documents should be kept.
If you would like us to draft or ament a shared well agreement then contact the Dunaway Law Group at 480-702-1608 or Clint@DunawayLG.com.