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A Shared Well

Agreement

When buying a property with a shared well, a legal agreement is essential, in order to

protect your access to the water supply and to spell out the costs and responsibilities

involved in maintaining the system. For more information on this topic, refer to the

wellcare

information sheet, “Sharing a Well.”

Below is a sample Shared Well Agreement, based on the U.S. Department of Housing

and Urban Development (HUD) model, from the U.S. Department of Agriculture Rural

Development website. All situations are different and individuals should seek

independent legal advice before entering into a contract. This form is intended to be a

starting point, and should be reviewed and modified by an attorney prior to being

finalized. Each state has different legal rules that must be considered.

SHARED WELL WATER AGREEMENT

(Based on HUD Model)

This Agreement, made and entered into this ________________ day of __________

by and between _____________________________, party of the first part, hereinafter

referred to as the "supplying party", and ___________________________, party of the

second part, an approved United States of America, Rural Housing Services, mortgagor,

and hereinafter referred to as the "supplied party":

WITNESSETH:

THAT WHEREAS, the supplying party is now the owner of property known as

________________________________________ (Parcel 1)

, located in the County of

________________, State of ________________, which property is more fully described as

follows, to wit:

and

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WHEREAS, the supplied party is the owner of___________________________

(Parcel 2)

, located in the County of ________________, State of ________________, which

property is more fully described as follows, to wit:

and

WHEREAS, the undersigned parties deem it necessary to provide a well system to

service the parcels described herein, and an Agreement has been reached relative to

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

WHEREAS, there is located a well upon ___________________________ (Parcel

, together with water distribution facilities, hereinafter referred to as "water

distribution system", for the purpose of supplying water to all properties connected to

the said water distribution system; and

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

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

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

consumption of the occupants of said properties, and to assure the continuous and

satisfactory operation and maintenance of the well and 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 is deemed by the parties hereto 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 assurance 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, the water from the well has undergone a water quality analysis from

the State of ________________ health authority and has been determined by the

authority to supply safe and potable water; and

WHEREAS, the parties hereto desire to enter this Agreement for the purpose of

reducing to writing their respective rights and obligations pertaining to said well and

water distribution system.

NOW THEREFORE, in consideration of the promises and covenants herein

contained, it is agreed that the well and water distribution system situated on

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___________________________ (Parcel 1) shall be used by the parties to this Agreement,

as well as by all future owners and occupants of said parcels, upon the following terms

and conditions:

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

parties hereto, their heirs, successors and assigns, for the exclusive benefit of the

respective parcels of real estate, and for the exclusive use of the household

residing thereon, are hereby granted the right in common with the other parties

to this Agreement, to draw water from the well located on

________________________________________ for quotidian domestic use excluding

the right to draw water to fill swimming pools of any type.

2. That the owners or residents of the dwellings located on ______________

(Parcel 2)

, as of the date of this Agreement shall:

a. Pay or cause to be paid to the supplying party, an annual fee for

this use of the well and water distribution system;

b. 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 that may become necessary. Each respective share

shall be determined by dividing the amount of each expense by two

, it

being understood that the supplying party and the supplied party shall

pay an amount equal to one half

of the total 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.

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

improvements on an individual parcel 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 parcel, except that costs 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.

4. That each of the parties hereby agrees that they will promptly repair,

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

5. 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 or improvement, 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.

6. 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 parcel.

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7. That it is the agreement of the parties hereto that the payment for

energy cost shall be made not later than the _________day of each succeeding

month 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.

8. 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.

9. That each of the parties to this Agreement does hereby grant to the

other, his heirs, successors and assigns, such easements over, across and

through the respective parcels 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 this Agreement. These easements are described below, to

wit: (Describe easements, if any and cite Warranty Deed)

___________________________________________________________________________

_______________________

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

the use of said easements.

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

situation and shall have access to the pertinent parcel 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.

12. That only those parcels of real estate hereinabove described and the

dwellings located thereon shall be permitted to receive water from said well

and pumping equipment; and each of the parties hereto does hereby covenant

and agree that he/she will not allow or permit other persons, other than

household guests, to take, draw, use or receive water from the well, nor permit

other persons to connect to the pipes or mains serving his/her respective parcel.

13. 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

parcels, 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.

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14. That upon the availability of such other source of water, it is

contemplated that a reasonable time shall be allowed to effectuate the

necessary connections to the new source.

15. 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 at the

Office of the Register of Deeds of the County of ________________, State of

________________. 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. The terminated parties shall

disconnect their respective lateral connection from 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.

16. 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.

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

than four single family dwelling units or four parcels, notwithstanding the

ability of the parties to make other amendments to this Agreement.

18. That the parties may amend this Agreement to assure equitable

distribution of shared costs and responsibilities; 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.

19. That the term of this Agreement shall be perpetual, except as herein

limited.

20. 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_______________________________

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County of )

)ss

State of )

Sworn and subscribed before me this _________day of ____________________.

__________________________________

Notary Public

My commission expires:___________________________.

FOOTNOTES

1. This Well Agreement is written for two parties, viz. a "supplying party" and a

"supplied party"; however, the language, where appropriate, may be adjusted to

encompass up to four parties, one of whom would be the supplying party. The same

format is to be used for legal descriptions for additional parcels. The parties may elect

to choose a trustee to receive payments and manage the maintenance and satisfactory

operation of the well and water distribution system.

2. The terms "Parcel 1" and "Parcel 2" are used herein for convenience; any

accurate description of the relevant land may be used in this Agreement.

3. In accordance with Footnote 1, if there are more than two parcels, the following

language may be substituted:

"That the owners or residents of the dwellings located on said parcels, as of the

date of this Agreement, shall..."

4. This Well Agreement need not necessarily require an annual fee. If the parties

agree not to charge an annual fee, then the language of "a" may be eliminated.

5. If there are more than two parcels, expenses should be divided by the number

of parties to the Agreement. The following language may be substituted:

"Each respective share shall be determined by dividing the amount of each

expense by _______, the number of parties to the Agreement."

6. The following language may be substituted if there are more than two parties:

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"That the undersigned supplied parties shall pay to the supplying party (or

Trustee) their respective proportionate shares for the cost of energy for the

operation of the pumping equipment..."

7. The use of all personal pronouns, possessive adjectives and referents

comprehends both genders, and intends not to exclude the female gender from its

purview.

8. The following language may be substituted if there are more than two parties

to the 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 owing

him a payment until all arrearages in his payments are received by the supplying

party."

9. The decision whether to select and employ an arbitrator shall be optional, and

according to the mutual preferences of the parties.

For more information on shared wells

For more information on buying a home with a shared well, mortgage lender

requirements for a shared well, and elements in a shared well agreement, see the WSC

wellcare

information sheet on “Sharing a Well,” available at

www.watersystemscouncil/wellcare/infosheets.cfm

Other general information about wells can be found in the following wellcare

information sheets:

 Determining the Depth of

a Well

 Determining the Yield of

a Well

 Ground Water

 Selecting a Well

Contractor

 Sizing a Pressure Tank

 Sizing a Well Pump

 Wells

 Your Well & Septic System

 Coping with Low Water

Levels

 Managing a Flooded Well

 Protecting Your Wellhead

 Protecting Your Well

 Well Maintenance

 Wells and Fire Protection

 Wells: What to do When

Power Fails

 What To Do if the Well

Runs Dry

 Boiling Your Drinking

Water

 Disinfecting Your Well

 Drinking Water Testing

 Drinking Water

Treatments

 Home Drinking Water

Treatment Devices

 Testing Water for

Gardening and Lawn

Irrigation

 Understanding Drinking

Water Test Results

 Buying a Home with a

Well

 Closing an Abandoned

Well

 Dillon’s Rule

 Ground Water

Withdrawals

 Real Estate Professionals:

Buying or Selling a

Home with a Well

 Sanitarians – Closing a

Well

 Sanitarians – Inspecting a

Well

 Sanitarians – Wells &

Septic Systems

 Shared Well Agreement

 Sharing a Well

 Water Conservation

 Who Owns the Water

The Shared Water Well Agreement contained in this document was retrieved from

www.rurdev.usda.gov/WI/programs/rhs/library/Shared-Well-Agreement.pdf

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For more information on your drinking water

The following websites provide up-to-date information on efforts to protect drinking

water supplies and steps you can take as a private well owner. In addition, you may

contact the wellcare

hotline at 1-888-395-1033.

U.S. Environmental Protection Agency www.epa.gov

For more information about wells and other wellcare

publications

wellcare

is a program of the Water Systems Council (WSC). WSC is a national nonprofit

organization dedicated to promoting the wider use of wells as modern and affordable

safe drinking water systems and to protecting ground water resources

nationwide. This publication is one in a series of wellcare

information

sheets. There were more than 60 available at the time this document was

published. They can be downloaded FREE from the WSC website at

www.watersystemscouncil.org. Well owners and others with questions

about wells or ground water can also contact the wellcare

hotline at 888-395-1033 or

visit www.wellcarehotline.org

This publication was developed in part under Assistance Agreement No. X-83256101-0 awarded by the

U.S. Environmental Protection Agency. It has not been formally reviewed by EPA. The views expressed

in this document are solely those of WSC. EPA does not endorse any products or commercial services

mentioned in this publication.

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