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How To Cancel Well Share Agreement

Is it Possible to Cancel a Shared Well Agreement?

Frequently clients ask how to cancel a shared well agreement. In order to understand how well share agreement can be terminated it’s best to understand how they are created.

A shared well agreement is a contract regarding the drilling, maintenance, and use of a water well between multiple users. 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.

A professionally drafted shared well agreement will explain the process of amending or cancelling an existing agreement. They will often say something like, “This agreement can only be modified in writing and with the approval of a majority of the parties.” Or, the contract might require unanimous consent by all of the 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 Clint@DunawayLG.com.

* 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 State of Arizona.

Buying a House with a Shared Well

When buying an Arizona home with a shared water well, there are certain considerations to keep in mind. Many homebuyers have questions and concerns about shared wells when they’ve never lived in a house that shares a water well. By definition, a shared well is a water well that services two or more homes for residential purposes.

If you are consider buying a home that has a shared well, there are a few important things to keep in mind:

Is there an existing shared well agreement? Is it up to date? Accurate?
What are the monthly operating costs?
Are there any built-in contingencies for remediation, repairs, maintenance, and quality testing?
Are there any restrictions placed on your system? For instance, does the shared well agreement prohibit the use of swimming pools? Or does it prohibit
Are there records of periodic inspections and repairs?

inspect the well prior to the purchase

A well inspection is not a legal requirement to purchase a home but

It is important to note, that Arizona home inspectors do not conduct inspections of water wells. They inspect every square inch of the home but not the well. Therefore, the well could have serious problems and you would never know!

It is imperative that a shared well is functionig properly, otherwise dozens of people may be without water!

Here are a couple of things you should find in your shared well agreement:

Specification of the cost involved to share your pump in regards to power, repairing, testing and inspecting.
Requirement for corrective courses of action if testing reveals a deficiency.
Prohibit the use of the well water by any party for any reasons other than for bona fide domestic usage.
No additional residences may connect and use of the water.

prepare early to avoid delays in closing

A proper shared well agreement requires the signatures from the owners of each property that will be receiving water from the well. Hammering out the details of the agreement can be an incredible hassle. Sometimes a homeowner will dig in their heels over a certain provision. The back and forth can cause the sale to be delayed if the parties do not plan accordingly.

the importance of maintaining proper shared well records

Shared well agreements and their records can often become more and more innacurate. New owners will began accessing the well without written record or the parcel size / shape is changed because it has been split.

If you are looking to draft a new shared well agreement or make amendments to an existing shared well agreement, then contact us at 480-702-1608 or message us HERE.

* The information provided is informational only, does not constitute legal advice, and will not create an attorney-client or attorney-prospective client relationship. Additionally, the Dunaway Law Group, PLC limits its practice to the State of Arizona.

Maintaining a Shared Well

Our earth is a water planet, but only a very small fraction of the world’s water is fresh and/or located where it is needed. Groundwater resources are important to Arizona but are being depleted because pumping exceeds the rate at which natural recharge replenishes the supply. Wise water management and the implementation of water conservation methods are necessary to conserve local water resources, to sustain growth, and preserve health and the Environment. For the domestic well owner, knowledge of the vulnerability of their well, the importance of water quality monitoring, and appropriate well maintenance is necessary to assure drinking water availability and sustainable supply into the future.

WELL MAINTENANCE

If you are among the hundreds of thousands of Arizonians who rely on a private well system for your water supply, then it is imperative you create a maintenance schedule and method for record keeping. Set a maintenance schedule to test your water in to inspect your well, water treatment, and septic systems.

In Arizona, domestic wells–private and/or shared–are not overseen or regulated by any state, county or local agency. The well owner or manager has the full responsibility for maintaining the ownership status of the well with the Arizona Department of Water Resources, the operating performance of the well, and for the checking the quality of the water that comes from that well.

CREATING A WELL MAINTENANCE SCHEDULE

Set a maintenance schedule to inspect and test your well water, septic system, and water treatment. Private water supply systems require routine maintenance. These simple steps will help protect your well water system:

Perform annual tests for a minimum of bacteria.

Test your water anytime there is a change in taste, odor or appearance or someone is ill or pregnant.

Keep hazardous chemicals, distinct, fertilizer, pesticides and motor oil, far away from your well.

Periodically check your bill headed for damages in the well cap.

Allow only grass to grow around your well. Other plants can have longer roots and can damage your well casing.

Take care when working and mowing around your well. Damage to the casing can jeopardize the sanitary protection of your well. Don’t pile snow, leaves or other materials around your well.

Always keep it up using the maintenance and water testing logs in a manual.

The safety and purity of drinking water and the efficient operation of your well system depends on a properly organized maintenance schedule. Protect your investment in quality water supply through regular inspection, testing and repair. Similar to maintenance and repair on your car.

Gather a comprehensive history on your well and water quality. If you don’t already have a well log or well record, it’s not too late to start.

Inspect the water well several times a year. Check the condition of the well covering, casing and well cap to make sure all are in good repair, leaving no cracks or another open points for potential debris and pollutants.

Have the well system, including the pump, storage tank, pipes and valves, and water flow inspected every five years by a licensed well contractor. However, if you have no inspection record and cannot determine the age of the well, have it inspected immediately by a licensed well contractor. A properly maintained well usually has a serviceable life of more than 20 years.

SCHEDULE WATER TESTING

As a private well owner, you are responsible for the upkeep of your well and the quality of water it produces. While a loan provider or real estate company may require a water quality test, there are no federal or state laws that require a well owner to have their well tested. This means that while public water systems must meet certain water quality standards in order to provide safe, notable drinking water for their customers, well owners are solely responsible for testing their water, in order to protect the health of anyone who drinks it.

When should you have your water tested? Have you water tested when you purchase a property, annually, and when necessary.

To keep your well water clean and well operating at peak performance, regular water testing is a must. Private well owners are solely responsible for the quality of their drinking water. So, it is up to you, how and when to test your water.

Do not construct or locate anything above or near the well that may pollute the well water. A.R.S. 45-596(f)(2) requires that septic tanks are located more than 100 feet from water wells.

INSPECT AND PROTECT THE WELLHEAD

The most visible portion of your drinking water system is the wellhead, the structure built over the well to protect its various parts. The wellhead is your first line of defense to prevent pollutants from entering your drinking water system. The wellhead protects the well casing, which is the lining of the well, and the well cap, which provides a tight-fitting seal at the top of the well. Inspect your wellhead regularly to make sure these elements are in good condition. By protecting your wellhead, you will help ensure the quality of your water supply.

Schedule Septic System Maintenance

Set a maintenance schedule to inspect and test your septic system. Keep records of maintenance, test results, and repairs to help your contractor with future repairs. To avoid well contamination, septic tanks should be pumped every three to five years based on use and family size. Inspect septic tank each year for capacity and leaks. Repair the tank or drain field system as needed to prevent leaks of bacteria and nutrients into groundwater. Faulty septic system poses a serious threat to the quality of your drinking water and can require expensive repairs.

At a minimum, well water should be tested every year for bacteria, the most common water quality problem.

RECORD KEEPING: MAINTAINING YOUR OWN WELL RECORDS

What well water records should be kept? Keep records of maintenance, test results, and repairs to help your contractor with future repairs.

What Well Records Should be Kept? Copies of the well share agreements, electricity usage, bank account balances.

How & Where Should the Well Records be Kept? Ideally, the records will be kept online, where they can easily be updated and accessed by all parties to the well share agreement. In addition to keeping copies of all the well record forms submitted to the Arizona Department of Water Resources, well owners should keep a summary of their well construction and maintenance activities.

To assist in this task a well maintenance record form can be found by clicking HERE. This form lists and groups the types of information necessary for the efficient up-keep and repair. When a water pump is exchanged then it is to be reported to the ADWR. See ADWR Online Pump Completion Report (azwater.gov)

If you have questions about maintaining well records then contact the Dunaway Law Group at 480-702-1608 or Clint@DunawayLG.com.

Well Share Bank Account

Traditionally, the parties to a well share agreement have a joint checking account used specifically for paying the well electricity and repairs. Usually, each property owner pays a flat amount to cover the cost of the electricity and to set aside money for repairs.

A well share bank account can help the parties save a little each month to cover the cost of expensive repairs.

1. Pay the Electricity Costs for the Well

Electric pumps are typically used to bring water to the surface. Traditionally, there is a single electricity meter attached to the pump. This means that it is easy to know the monthly electricity bill, however, it does not tell you how much electricity was used by a particular homeowner. This is why most most well share agreements require each homeowner to pay a flat amount of 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 leak, or even drilling a well deeper.

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– Ask the bank to send a statement to each homeowner. This way, every homeowner can verify that the electricity bill is being paid and how much money has accumulated in the account.

Failure to Properly Identify the Terms of Use and Maintenance Liabilities Can Lead to Future Misunderstanding and Disputes

contact the dunaway law group, plc

For assistance with your water well contact us by phone at 480-702-1608 or message us at Clint@DunawayLG.com.

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 State of Arizona.