Is it Possible to Cancel a Shared Well Agreement in Arizona?
We are frequently asked how to cancel an Arizona Well Share Agreement. In order to understand how to cancel a well share agreement, it’s best to understand how they are created.
How a Well Share Agreement Created: A shared well agreement is simply a contract between neighbors regarding the use of a water well. The agreement identifies Parties, properties, well location and water distribution system, maintenance liabilities, and easements.
Parties are identified by their full legal names. The properties, well, and easement locations subject to the agreement must be identified using valid legal descriptions and a diagram showing the locations of the well and distribution system attached as exhibits. Failure to properly the terms of use and maintenance liabilities can lead to future misunderstandings and disputes. Additionally, a shared well agreement should be both notarized and recorded with the county recorder’s office.
Shared well agreements are simply contracts entered into by people sharing water from the same well. Like most contracts, these well share agreements can be modified, amended, or terminated once corresponding rules are met.
Cancellation May Be Provided For in the Well Share Agreement Itself. Well share agreements drafted by our firm have a specific provision that explains how a person can surrender their ownership in the shared well.
Modification By Unanimous Consent. Some non-professionally drafted well share agreement do not discuss how a person can withdraw from the agreement. If it does not explain how to cancel an agreement then the only way it can be is by following the rules set forth in the agreement itself. Most agreements will say something to the effect, “This agreement can only be modified by unanimous consent of all the Parties.” In that case, a person can only withdraw from the agreement with the approval of all the other Parties.
shared well agreements “run with the land”
“Running with the land” refers to the rights and obligations in real estate that remain with the property regardless of who owns it. These rights and obligations are tied to the property and not to the owner and so they stay in place as the land is transferred from one owner to another and so a property owner cannot simply say, “I’m going to cancel the agreement”.
The importance of this means that an Arizona property owner who purchases a home with a shared well is obligated to abide by the well share agreement even if they did not sign it!
Lastly, remember that the Arizona Department of Water Resources does not regulate shared well agreements. Therefore, it will not become involved in interpreting or enforcing the agreements. So make sure that your shared well agreement is professionally written because if there are errors, if some topics are vague or ignored, it can create a lot of problems in the future.
The Dunaway Law Group drafts and amends shared well agreements. If you are looking to draft a new agreement or make modifications to an existing shared well agreement then contact us at 480-702-1608 or HERE.
These blog posts are not intended, nor shall they be deemed to render legal advice. Reading these blog post does not create an attorney-client relationship, nor shall it impose an obligation on the part of the law firm to respond to further inquiry. The Dunaway Law Group limits its practice to the great states of of Arizona and New York.