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.
purpose of the well share checking account
A well share checking account can help the parties save a little each month to cover the cost of expensive repairs.
1. Pay the Electricity Costs
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 a 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 bank account should not be used for any other purpose than maintaining the 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.
contact the dunaway law group, pllc
For assistance with your water well contact us by phone at 480-702-1608 or message us by email: 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.