On Feb 26, 8:51�am, wrote:
On Feb 26, 7:58�am, "tom" wrote:





JohnnieMarr wrote:
I share a well with my neighbor. �For both of us, the well and pump
were supplied by the developer who old us the land on which we built
last year. �Both houses use the well and pump, but only one house
supplies the electricity--and that's our house! �We agreed that we
would pay for the electricity along with the rest of our electricity,
but our neighbor should pay us half the cost of the electricity
required to run the pump.

that last sentence contains the answer.

how is this agreement spelled out, in legal terms? on your closing statement, on deed,
gentlemen's handshake, what?

I would suggest you sit down with neighbor and spell out a simple paper where he
agrees to pay you a monthly stipend which includes a future fee for not only the
electric use (that can not be more than $15 per month) plus some amount for
depreciating the hardware, plumbing, tanks, lines, supplies for parts and repairs for
existing equipment.

there is no need to create tension due to this situation, so my quick solution would
be to create a paper which you both sign and have 2 witnesses for signatures,

Unfortunately, the stage is already set for tension to be created.
For example, he says they agreed to split the cost of the electricity,
but apparently no mention was ever made of splitting anything else.
So, now trying to get the neighbor to pay more could very easily
create tension, even if he goes about it very nicely and is 100%
right.

I agree with the advice to check the closing documents. � This
arrangement should have been spelled out in the deeds or a seperate
agreement at closing. � Who's land is the well and pump eqpt actually
on? � Did you use an attorney at closing? � Was he aware of this
situation and what did he say?

If there are no terms specified anywhere, then I'd figure out what the
estimated life of the well and eqpt is. �I'd figure in a yearly
depreciation and have the neighbor pay you half. � �As for the
electric, you can estimate that too, by knowing the operating draw of
the pump and how long it runs on average. � There are devices like the
kill a watt gizmo that will tell you how much electric a device uses
by the day, week, etc. �Of course, you still don't know for sure,
because one house could use 3X the water of the other. �For example,
suppose the neighbor installs a lawn irrigation system?

Then, you need to keep track of the payments over time that the
neighbor is making towards his half of the depreciation. � If it turns
out replacement is needed, for example if the pump were to fail, then
at that time you would credit the amount paid for depreciation of that
particular item against the neighbors share of the replacement cost.
The agreement should spell out that any excess is to be split between
the parties. �It should also spell out that for any routine repair, as
opposed to replacement, the cost will be split.

In general, as you are beginning to find out, this is usually a bad
situation that leads to trouble. � For the cost of the well and eqpt,
it's just not worth it. � It's better to have paid any extra $5K up
front and not have to deal with this, because sooner or later, it
could very easily cost you more than that in legal fees and
headaches. �An obvious point where that headache will come into play
is when you go to sell your home? � It's not too likely that the next
buyer will overlook this as you did.

�ie. we



have agreed that our neighbor pays $20 per month which includes all electric and parts
existing or any repairs now and in the next 24 months - this agreement will stay in
force until Feb 2010 at which time it will be renegotiated based on then prevailing
utility rates and consideration to equipment age and any repairs that may need to be
performed in the next 12 months as of Feb 2010

should your neighbor not agree to these terms, make every attempt to come to a
mutually agreeable solution without appearing to be taking advantage of the status now- Hide quoted text -

- Show quoted text -- Hide quoted text -

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you could put a water meter on his feed. set a rate and read 3 times a
year. enough to cover electric and killers like pump replacements

i would be concerned at home resale time. YOU will have trouble
selling your home with this entalgment with your neighbor

did other homes do the same thing?