Selling A House With A Shared Well (Guide)
Thinking of selling your house, but you're worried because it relies on a shared well?
Relax! You can still find a happy buyer!
While it requires a little extra planning compared to houses with city water, selling your well-maintained (and money-saving!) home is absolutely possible.
In this guide, I'll go over everything you need to know about selling a house with a shared well.
#1 Review The Shared Well Agreement
The very first thing you need to do when selling a house with a shared well is find the actual legal agreement about that well.
This is called a shared well agreement.
This document is probably buried in a pile of paperwork from when you originally bought the place, so you’ll have to do some digging to find it.
Once you've got your hands on it, you'll want to set aside some time to really go through it.
This agreement spells out the rights and responsibilities of everyone involved with using that shared well.
It will likely have details about which specific properties the well serves, who is responsible for maintenance and repairs, and any rules or guidelines about how the well can be used.
If you don't have the shared well agreement, consult a lawyer specializing in real estate to draft one for all involved parties.
#2 Do A Well Inspection And Water Test
Before you list your house, it’s a good idea to get a professional to inspect the well.
The inspector will check out the actual well itself - the casing, the depth, the water flow rate, and all those nitty-gritty details.
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They'll also assess the pump system and any other equipment to make sure everything is functioning properly and there aren't any glaring issues that need to be addressed immediately.
They'll also recommend any maintenance that might be needed.
On top of that, get a recent water test done by a qualified lab.
This test will show if the water is safe to drink and meets all the regulations for drinking water.
This inspection is important because it provides valuable information you can share with potential buyers, reassuring them about the water supply.
If there are any problems, you should either fix them or be upfront about what needs to be done.
#3 Prepare The Disclosure
In most states, you're legally required to disclose to buyers that the property uses a shared well.
So you'll need to put together a nice, comprehensive disclosure document.
Some states may have a form especially for this. For example in Arizona, you have to use the Domestic Water Well/Water Use Addendum.
Include details about the well agreement, the inspection results, the water quality test findings - basically, anything relevant about the condition and capacity of the well.
Also, mention any known issues with the well, such as past repairs or disputes.
Consulting with a real estate attorney to ensure you've checked all the right disclosure boxes isn't a bad idea either.
This disclosure ensures buyers are fully informed before making their decision.
But the reality is, some buyers may be totally put off by the idea of a shared well, and that's okay - better for them to know upfront so you don't waste each other's time.
#4 Sell The House
Now that you've prepared everything, you can officially list it, put up that "For Sale" sign, and start marketing it to prospective buyers.
During the negotiations, be prepared to answer questions about the shared well.
Focus on the positives – potentially lower water bills since you're not relying on city water, and a sense of community with the other property owners who share the resource.
Also Read: can an HOA prevent me from selling my house
Maybe you have lovely neighbors you share the well with, and that can be a selling point!
#5 Well Transfer
Once you find a buyer and close the deal, there's one more step – transferring well rights.
This usually means updating the shared well agreement to include the new owner’s information. Work with your lawyer to ensure everything is done correctly and legally.
The goal is to make the transition seamless, so the new owner understands their responsibilities and fits smoothly into the existing agreement.
This is crucial to ensure the new owner is ready to take on their role in the shared well arrangement.
#6 Inform Other Property Owners
Last but not least, don't forget to give the other owners who share the well a heads up about the sale and the upcoming transfer of ownership.
It's just good manners to keep everyone in the loop!
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Shoot them the new owner's contact info and any other updates to the well agreement.
Wrapping Up
So there you have it - those are the key steps to successfully selling a house with a shared well!
It's not the most straightforward process, but if do your due diligence on inspections and disclosures, and prioritize open communication, you can absolutely make it happen.