Shared well bank accounts are used to pay for water well electricity, well repairs, and well maintenance. Traditionally, each property owner pays a flat amount to cover the cost of the electricity and to set aside money for repairs.
Purpose of a Well Share Bank Account
A well share bank account can help the parties save a little each month to cover the cost of major well repairs and maintenance.
1. Pay the Electricity Costs for the Well
Electric pumps bring water from the well into a storage tank. Traditionally, there is a single electricity meter attached to the pump. As such, it is impossible to tell how much electricity was used to deliver water to a particular household. For this reason, most Parties to a shared well agreement pay an equal amount of money each month for the electricity.
2. Save for Major Repairs to the Water Well
The second major reason homeowners use a joint checking account is to set aside a little money each month for major repairs to the well. With this nest egg, no one is left scrambling to come up with the money.
Major repairs may include replacing a pump, fixing a water leak, or even deepening the well.
- Open the Bank Account Now– Even if the well share agreement is not finalized, it is not too early to open the shared bank account.
- Specific Purpose– The well share bank account should not be used for any other purpose than maintaining the water well.
- Equal Access to the Bank Statements– The bank can send monthly statements to each homeowner. This way, every can verify that the electricity bill is being paid and that the accumulated money stays in the account.
Contact the Dunaway Law Group
For assistance with your water well contact us by phone at 480-702-1608 or message us HERE.
These blog posts are not intended, nor shall they be deemed to be the rendering of legal advice. Reading these blog posts does not create an attorney-client relationship, nor shall it impose an obligation on the part of the attorney to respond to further inquiry. The Dunaway Law Group limits its practice to the states of Arizona and New York.