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MichaelO4 (Montana)
Posts: 40
Posted:
OK, here's a tricky one...

When our 21-unit condominium complex was developed in 2004-2006, the developer drilled a water well ON HIS PERSONAL PROPERTY that adjoins the
complex property (he owns a rental house on that lot). The well serves our common area sprinkler system. This approach avoided connecting to the
costly city water system for irrigation purposes. Our complex pays the former developer (he's since turned the complex over to the owners)for the
water during the summer months (we're in Montana).

So far, so good. BUT, what happens if he sells that lot with the water well (and submersible pump), and the new owner decides not to maintain the current
arrangement, or decides to up the price we pay for the water? We would be forced to either pay the new rate or drill a new well on complex property, again,
very costly (we're talking a Special Assessment here).

Note: This situation and potential future liability was not disclosed to any of the original or subsequent buyers at closing by the developer, the real estate agents, the sellers, or the title companies, etc., and no one thought to ask...who would?

Question #1: Did anyone have an obligation to disclose this situation to the buyers?

Question #2: If yes, what might be their financial obligations to the complex owners if we must drill a new well?

Or are we just screwed?

Thanks
GlenL (Ohio)
Posts: 5,491
Posted:
Michael didn't you post this same question a month or so ago? You really should get a legal opinion from a qualified source not the interweb to hang your hat on, especially concerning liability. In my non legal opinion there was no obligation to disclose nor would there be any recourse. That opinion and five dollars will buy you a small coffee somewhere.

As to sinking your own well does the COA have water rights? I hear they are fiercely contested and protected.

Studies show that 5 out of 4 people have problems with fractions
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By GlenL on 08/22/2013 11:24 AM

Michael didn't you post this same question a month or so ago?

It appears he did. Here is the link:

Subject: Irrigation System

Michael,

I didn't respond in that thread, so I'll do so now.

1) If the owner of the well is not legally obligated to supply water, then you might want an attorney to draw up an agreement so there is a legal requirement.

If the owner doesn't want to sign such an agreement and/or decides to increase the cost for the water or simply stop supplying it, the members will either have to drill their own well or pay to hook up to the city water supply.

2) What financial obligations might the developer still have with property that has been completed is a legal question and, as Glen suggested, is best answered by an attorney as they would have full access to any documentation and be knowledgeable of the applicable laws.

One thing to point out, the cost of a legal battle to have the developer cover all or some of the expense of drilling a new well or hooking up to the city supply might prove to be more than the benefits obtained.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Michael

As Tim said:

If the owner doesn't want to sign such an agreement and/or decides to increase the cost for the water or simply stop supplying it, the members will either have to drill their own well or pay to hook up to the city water supply.

I say pursue this now if for no other reason then to have an answer/plan if the owner shuts the irrigation water off tomorrow.

AllisonD (Florida)
Posts: 449
Posted:
If you are paying the owner some sum of money for the use of the land/pump/water, this may be an attractive feature he can use to sell his house, sort of like a rental cottage on the property. Dont assume a future owner would shut you down. But I agree with the rest, you should memorialize your agreement legally.
GlenL (Ohio)
Posts: 5,491
Posted:
Of course bringing it up might have unexpected consequences. Sometimes it's better to let sleeping dogs lie.

Studies show that 5 out of 4 people have problems with fractions
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Glen is right

I realize my advice might could have been misinterpreted. Let the sleeping dog lay but gather information (your own well, city water) for irrigation so if the dog awakes and growls, you have the necessary info.

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