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 the well share Bank account
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 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, plc
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.
An Assessor Parcel Number (APN) is a unique number assigned to each parcel of land by a county tax assessor. The APN is based on formatting codes depending on the home’s location. The local government uses APNs to identify and keep track of land ownership for property tax purposes.
To find your Arizona property’s APN, go to the local county assessor’s website and search by your address. There you can see information regarding your APN, lot size, home type, property tax history, and sale price history.
Synonyms include Assessor’s Parcel Number (APN), Assessor’s Identification Number (AIN), County Assessor’s Parcel I.D., Property Identification Number (PIN), Property Account Number, Tax Account Number.
can i register a shared well in my name, even if the well is not on my property?
No. A water well can only be registered in the name of the Arizona property owner in which the well is located.
does a well share agreement need to be recorded with the aDWR?
No. Not only is it not a requirement to record your well share agreement with the Arizona Department of Water Resources they do not oversee shared well agreements at all!
A well share agreement does not have to be recorded anywhere, however, it is good practice to record the agreement with the county recorder in which the well is located. For example, if the shared well is located in Maricopa County then the well share agreement should be recorded with the Maricopa County Recorder’s Office.
Additionally, it is wise to record the well share agreement with the Arizona Department of Water Resources. The benefit to recording the agreement with them is that it is placed into the well’s file and then it can be retrieved at some future date.
are well share agreements mandatory?
No, well share agreements are not required. In fact, shared wells are completely unregulated by any State entity. So, while it is unwise to share a water well without a written agreement it is not a required by the government.
must i record my well share agreement with the county recorder’s office?
No, well share agreements in Arizona are completely unregulated and so there is not a requirement that they must be recorded with the county recorder and or recorded with the Arizona Department of Water Resources. However, recording the agreement with both organizations is a wise decision.
In Arizona, the Arizona Department of Water Resource’s assigns a well registration number to each water well. These well registration numbers each begin with the number 55. To find your well’s 55 number go to the Arizona Department of Water Resource’s Website and search using a few different methods.
In order to find your well’s 55 number, you need to know one of the following pieces of information: Well Registry Number or the Well Owner’s Name, or the location of the Well: Township/Range, Cadastral, Basin, or Subbasin.
without a well share agreement can i be denied water?
Yes. The Grantees, the recipients of the well water, can be denied access to the water without a proper well share agreement. Some people may say, I do not need a formal well share agreement because I’m friendly with my neighbor and we have a verbal agreement. But what if your friendly neighbor moves? Will you still have a legal right to the water? No. The new owners do not have any obligation to share well water with you.
If you need help from an experienced shared well attorney, then contact the Dunaway Law Group 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 states of Arizona and New York.
What are your rights to water that comes from a shared well that is not located on your property? For most people, the answer is in their written well share agreement.
The first question to be considered is—which state regulating body grants me the right to access and use groundwater? The Groundwater Management Act “GWMA” of 1980 established that groundwater, is common property of the citizens of Arizona and the management of it was under the Arizona Department of Water Resources, (ADWR). All groundwater withdraws in Arizona must come from a water well that was permitted by ADWR.
Owning the land or having an easement right does not give you the right to extract groundwater. The right to extract groundwater in Arizona only comes from having a permitted well.
Therefore, a well share agreement to share the water from a legal source should always refer to the well by its ADWR registration number.
On Whose Land Does is the Well Located?
The second question to be considered is: whose land is the well located on? If the well is located on land that is titled in the name of one of the members of the well share group, then that person owns the well. Drilling and constructing a water well creates a permanent change to real property and that improvement cannot be separated from the land, therefore, well becomes a part of the real property. Groundwater is not real property. Percolating water beneath the earth in Arizona is called groundwater and in it is considered “public” property managed by the ADWR.
If the well is located on your neighbor’s lot, and they hold title to the land in their name, the well should be registered with the ADWR in their name. The ADWR recognizes that shared wells can, and should be, registered in the name of the person or party that is responsible for its management. The ADWR has created Form 55-73 , for the purpose of registering shared wells in the name of a managing or operating group. Registration of a well with the ADWR does not establish ownership of the well. A.R.S. § 45-593(c), requires that the owner of the land keep the ADWR up-to-date as to who owns the land and where the well is located. For this purpose, the ADWR created Form 55-71(a), request to change well information.
well is owned by those named on the deed
When a shared well site is situated on a parcel of land that is deeded and recorded in the appropriate Arizona county, the well is owned by the names listed on that deed. The wording of many well share agreements may grant several owners an undivided interest in into a small piece of land, and thus an undivided real property interest in the well. When this wording is used on the deed and in the shared well agreement, the assessors map should show a smart parcel of land with its own Assessor’s Parcel Number (APN). In this case, the well should be registered in the name of all parties listed on the deed.
If your well share agreement is worded in the same manner as the deed, you own an undivided piece of this land which means that you are also subject to a portion of the yearly property taxes or improvement assessments on this parcel.
Once water is pumped to the surface from a registered well, and placed in the storage tank, it becomes the personal property of the owners of the land. So, if you own a percentage of the land via the deed, then you also own a percentage of the water stored on it.
easement rights & ownership rights
Some well share agreements are structured such that the participants receive only an easement right to access the land where the well is located. There is a major difference between owning an undivided interest in a piece of real estate, partial ownership, versus having just a vested interest in someone else’s real property granted by an easement. An easement is a vested interest in someone else’s real property and not an undivided fraction of title to the land into the well.
An easement will typically state that it was granted for a specific purpose. If your well share agreement is an easement right of entry you should verify that you have a right to do more than merely access someone’s land. The wording of that easement may, by exclusion, not grant you are right to receive and share the water, located on that property. An easement is a vested interest only in someone else’s real property for a specific purpose and groundwater is not a part of real property.
arizona water well agreements- pre-1980
Many well water agreements in place today were written prior to 1980, when groundwater was more loosely considered to be a part of the real property. These older versions often refer strictly to the land and not to the water or the registered well. Well share agreements that refer strictly to a piece of real estate, and do not state the registration number of a well, may not be granting you a legally defensible right to the groundwater. A registered water well is the only legal right to the public groundwater resource and it is granted only to the permitted owner of the land. This is a very compelling reason why all well share agreements should refer to the water well being shared by the registration number.
Well share agreements should define a legal right to groundwater from a registered well. A well share agreement is a legal contract between two or more persons and it can be enforced by the courts. Not complying with the well share agreement can constitute a breach of contract.
If you are considering the purchase of a home with a shared well then read on post of what to expect when living in a home with a shared well. Also, review what a website that will help you schedule and record maintenance records and other important information.
If you would like to amend an existing water well agreement or would like to create a water well agreement then contact the Dunaway Law Group, PLLC at 480-702-1608 or [email protected]
* 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 states of Arizona and New York.
The benefits of an accurate and professionally written shared well agreement are endless. A well written (pun intended), well share agreement decreases the odds of disputes and give you peace of mind. It provides certain assurances that their interests will be protected.
Over the years I have spoken to literally hundreds of Arizonians with some type of dispute regarding a shared well. A common variable in this situation is a poorly written shared well agreement or none at all.
Every situation is different, every property is different, every well is different, and this is why we create custom agreements for each client. In addition to providing advice on the general issues we also provide advice on more nuanced issues. For instance;
What about swimming pools? Will they be allowed?
Must each property owner install an individual water flow meter to track their usage?
Will a joint bank account be established to pay the well utilities and save for major repairs?
Should vacant land-owners still pay for costs and repairs even when not drawing water from the well?
What about someone who no longer wants to draw water from the well? Must they continue paying for repairs?
benefits to the well owner- “grantor”
A well share agreement gives the well owner an enforceable rights against the Grantees that they pay their portion of the maintenance, repairs, water and electricity. Grantors have an enforceable contract that requires the Grantees to pay their equal share of well maintenance, repairs, water and electricity.
benefits to the recipients- “grantees”
Shared well agreements provide Grantees–those receiving the water–with a legal right to draw water from the well. Without a written shared well agreement, a well owner could deny access to a Grantee. The Agreement is the only assurance Grantees have with a legal right provided in the agreement.
A Grantee might think, “I do not need a formal or accurate shared well share agreement because I’m friendly with my neighbors and we all get along.” But what if those friendly neighbors move? Will you still have a legal right to the water? Remember, without a shared well agreement, the well owner has no legal obligation to share the well water with you.
process of drafting a well share agreement
Verify Well and Parcel Information
The first step in creating an excellent well share agreement is to verify the accuracy of all the relevant information. I’m amazed at how many errors we find when amending or re-drafting an Agreement. If the information in an Agreement is incorrect, then it can create real headaches for everyone involved.
Verify the Assessor’s Parcel Number(APN)
An Assessor’s Parcel Number, abbreviated as APN, is a unique descriptor used by each county to identify assessed real property. The APN includes information about the ownership, characteristics, and valuation of each piece of land that is reordered and tracked by parcel number.
While a property can only have one APN at a time, APNs change on a fairly regular basis as parcels are merged, split, or subdivided. We make sure that the correct APNs are used.
Verify the Legal Descriptions.
Occasionally we find errors in the legal descriptions used to have create a former/current shared well agreement. We verify that the legal descriptions are correct.
The Agreement is Reviewed and Recorded
Once the Agreement has been approved and signed by all Parties, it is recorded with the county. Recording the Agreement reduces the odds of someone later challenging the veracity or accuracy of the Agreement. We then take a copy of the recorded agreement and provide it to the ADWR to save in the Well’s permanent file.
If you need help from an experienced shared well attorney, then contact the Dunaway Law Group 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, limits its practice to the State of Arizona.
We are frequently asked how to cancel a shared well agreement. In order to understand how to cancel a well share agreement, 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 [email protected]
* 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.
