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LawTalk
LawTalk, Attorney
Category: Real Estate Law
Satisfied Customers: 27887
Experience:  I have 30 years legal experience. Additionally, in CA I held a Real Estate Broker's license.
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I need a shared well agreement form to fill out Where can

Resolved Question:

I need a shared well agreement form to fill out
Where can I get the form?
Submitted: 3 years ago.
Category: Real Estate Law
Expert:  LawTalk replied 3 years ago.

Good morning,

I'm sorry to ehar of your dilemma.

Here is a basic agreement that you may modify for you own use:


Shared Well Water Agreement

THIS AGREEMENT made this ____________day of __________, 20_____by

Round Butte Ranch, LLC, the owner of Tracts 3&4 of COS 6404 (commonly

known as River Valley Trails), Lake County, Montana.

All subsequent owners of Lots/Tracts 3&4 shall become parties to this agreement

as described below.

WHEREAS, the undersigned party deems it necessary to provide a well system to

service the Lots described herein, and an Agreement has been established relative

to supplying water from the well and the cost of supplying said water; and

WHEREAS, there is located a well approximately on the common boundary of

Lots/Tracts 3 & 4 for the purpose of supplying water to all properties connected to

said well. This Agreement will establish an easement of a 30’radius around said

well to install and maintain a pump and water distribution system for the benefit

of all current and subsequent owners.

WHEREAS, it is the intention and purpose of the undersigned that the well and

future water distribution system shall be used and operated to provide an adequate

supply of water for each of the properties connected thereto, for the normal

household use and consumption of the occupants of said properties, and to assure

the continuous and satisfactory operation and maintenance of the well and future

water distribution system for the benefit of the present and future owners, their

heirs, successors and assigns of the properties connected thereto; and

WHEREAS, the said well complies with state regulations and is deemed to be of

adequate capacity to supply a single family dwelling on each of the parcels

described herein with water from the well for all domestic uses of a single family

residing therein, and

WHEREAS, the United States of America, Rural Housing Services, will not

finance or guarantee mortgage loans covering the separate properties and

improvements thereon unless proper assurances is given by the parties as

demonstrated by execution of this Agreement, that the water distribution system

will have a continuous and satisfactory operation in accordance with the terms of

this Agreement; and

WHEREAS, this Agreement is established for the purposes of reducing to writing

their respective rights and obligations pertaining to said well and any future water

distribution system.

NOW THEREFORE, in consideration of the promises and covenants

herein contained, it is agreed that the well situated approximately on the boundary

of Lots/Tracts 3&4 shall be used by the parties to this Agreement, as well as by

all future owners and occupants of said Lots/Tracts, upon the following terms and

conditions:

1. That until this Agreement is terminated, as hereinafter provided, the parties

and subsequent heirs, successors and assigns, for the exclusive benefit of the

respective Lots/Tracts of real estate, and for the exclusive use of the household

residing thereon, are hereby granted the right in common with the subsequent

owners, to draw water for domestic use.

2. The party first requiring use of the well shall pay for installation of the pump

and their water distribution system including power installation. Subsequent

users of the well shall reimburse the first party for one half of the commonly used

assets after receiving proper documentation of said costs, and pay for all

improvements required for the subsequent users to make use of the well.

3. That the subsequent owner or residents of the dwellings located on the subject

Lots/Tracts as of the date of the Agreement shall:

a. Pay or cause to be paid promptly, a proportionate share of all expenses

for the operation and maintenance of the well and water distribution

system. The respective shares shall be determined by dividing the

amount of each expense by the number of users, it being understood

that the supplying party and the supplied parties shall pay an equal

portion of such necessary repair or replacement. Shared expenses

include the cost of electricity for pumping, repairs and maintenance on

said well and water distribution system.

4. That the cost of any removal or replacement of pre-existing site improvements

on an individual Lot/Tract/Tract necessary for system operation, maintenance,

replacement, improvements, inspection or testing, damaged as a result of repair of

the well or water distribution system maintenance will be borne by the owner of

the affected Lot/Tract/Tract, except cost to remove and replace common boundary

fencing or walls damaged as a result of repair shall be shared equally between or

among parties so damaged.

5. That each of the using parties herby agrees that they will promptly repair,

maintain and replace all water pipes or mains serving their respective dwellings at

their own expense.

6. That the consent of all parties to pay a proportionate share of costs shall be

obtained prior to embarking upon expenditures for system maintenance,

replacement, improvements, except in emergency situations. An arbitrator shall

be chosen by the parties; shall be consulted in the event the parties cannot agree

regarding the said expenditures; and the arbitrator’s decision shall be definitive.

7. That the supplied party shall pay to the supplying party his proportionate share

for the cost of energy for the operation of the pumping equipment. This cost shall

be determined by a separate meter upon each dwelling and for each Lot/Tract.

Each party shall install a valve on each dwelling service line as it leaves the well.

8. That it is the agreement of the parties hereto that the payment for energy cost

shall be made not later then the 10th day in advance of each succeeding month, or

quarterly in advance as the supplying party determines during the term of this

Agreement. In the event that any such payment remains unpaid for a period of 20

days, the supplying party may terminate the supply of water to the supplied party

until all arrearages in payment are received by the supplying party.

9. If agreed by both parties the requirement of a separate meter, dates and

methods of payment can be modified as agreed between the users for

convenience. However any one party can at any pint in time require resumption of

meter and payment methods as described above.

10. Each party agrees to repair any major leaks or ruptures on their Lot/Tract, or

connecting easements, in a timely fashion. Should another have to do this for

them during an extended absence, the affected party agrees to compensate the

repairer in the next month’s bill.

11. That it is the agreement of the parties that they shall permit a third party to

cure a default of payment or other obligation and shall permit water distribution

service to be reinstated upon such curative action.

12. That each of the parties to this Agreement does hereby grant to the other, their

heirs, successors and assigns, such easements over, across and through the

respective Lots/Tracts as shall be reasonably necessary for the construction of the

well, maintenance of water pipes, pumping equipment, mains, electrical wiring

and conduit consistent with the purposes of the Agreement. These easements are

described below, to wit:

A radius of 30’ around the existing well on the common boundary

of Lots/Tracts 3&4.

13. That no party may install landscaping or improvements that will impair the

use of said easements.

14. That each party shall have the right to act to correct an emergency situation

and shall have access to the pertinent Lot/Tract in the absence of the other. An

emergency situation shall be defined as the failure of any shared portion of the

system to deliver water upon demand.

15. Each of the parties agrees not to do anything that might contaminate or over

strain the water distribution system. Each of the parties agrees to use only as

much water as is needed by one average home and average yard and gardens on

their Lot/Tract, and not to waste, abuse, sell or give significant amounts of water

away to other neighbors.

16. That in the event the referenced well shall become contaminated and shall no

longer supply water suitable for domestic consumption, or shall no longer supply

water adequate for the needs of all relevant parties, or in the event that another

source of water shall become available to the respective Lots/Tracts, then the

rights and obligations of the parties created by this Agreement shall cease and

terminate in accordance with the terms and conditions hereinafter described.

17. That upon the availability of such other source of water, it is stipulated that a

reasonable time shall be allowed to effectuate the necessary connections to the

new source.

18. That the respective rights and obligations of the parties shall continue until

the parties who wish to terminate their participation in the Well Agreement have

executed and filed a written statement of termination a the office of the Lake

County Clerk & Recorder, State of Montana. Upon termination of participation in

this Agreement, the owner and occupant of each residence which is terminated

from the Agreement shall have no further right to the use of the well or the

easements. The terminated parties shall disconnect their respective lateral

connection form said well system and shall have no further obligation to pay or

collect for maintenance and related expenses incurred thereafter. The costs of

disconnection from the well and water system shall be borne by the owner of the

pertinent parcel.

19. That the undersigned parties shall permit periodic well water sampling and

testing by a responsible authority at the request of an undersigned party,

mortgagee or the United States of America, Rural Housing Services.

20. That the said well and this Agreement, if amended, shall serve no more then

three single family dwelling units or 3 Lots/Tracts, notwithstanding the ability of

the parties to make other amendments to this Agreement.

21. If any terms of this agreement, now or at this time in the future are not in

compliance with USA Rural Housing Services because of regulation changes or

otherwise, then it will be amended to comply and all parties agree to cooperate to

carry out the terms as may be required, and is reasonably practicable.

22. That the parties may modify this Agreement in writing with a signed and

recorded document. However, this Agreement may not be amended during the

term of a Federally-insured (direct) or guaranteed mortgage on any property

served, except as provided herein, for the purpose of adding to the prescribed

number of parties.

23. That the term of this Agreement shall be perpetual; except as herein limited.

24. That the benefits and burdens of this Agreement shall constitute a covenant

running with the parcels of land herein described and shall be binding upon the

heirs, successors in title and assigns of the parties hereto.

IN WITNESS WHEREOF, the parties have hereunto set their hands and

seal the day and year first above written.

By:___________________________

Date__________________________

By___________________________

Date__________________________

Page 6-River Valley Trails

Shared Well Agreement

STATE OF ______________)

County of_____________)

On this________day of April, 2011, before me, the undersigned, a

Notary Public in and for the State of Montana, personally appeared

Rodney Haynes, and known to me to be the person whose name is

subscribed to the within instrument of behalf of Round Butte Ranch, LLC,

and acknowledged to me that he executed the same.

In witness whereof, I have hereunto set my hand and affixed my

notarial seal on the day and year first-above written.

_____________________________________________

Notary Public for the State of _________________

Printed Name___________________________

Residing at_____________________________

My Commission expires __________________


I wish you the best in 2011.

Because I help people here, like you, for a living---this is not a hobby for me, and I sincerely XXXXX XXXXX abiding by the honor system as regards XXXXX XXXXX I wish you and your family the best in your respective futures.


Would you be so kind as to Accept my Answer so that I may be compensated for assisting you? Bonuses for greatly informative and helpful answers are very much appreciated. Thanks Again,

Doug



LawTalk, Attorney
Category: Real Estate Law
Satisfied Customers: 27887
Experience: I have 30 years legal experience. Additionally, in CA I held a Real Estate Broker's license.
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