FHA/community Well?

[KYLECODY]

Have a rural property where there is a community well servicing 15 properties. I've yet to find any documentation on it. The owners state its community water which doesn't mean much to me in regards to the appraisal.

Its my understanding if this is considered public than the County or municipality has to be responsible for maintenance and upkeep? If this is the case it should be on some sort of agreement.

If the well is privately held and maintained then this is a no go for FHA as they won't lend on a well with more than 4 properties.

Any other tell tales on when it is considered public or private?

 

[CindyR]

seems to me I did something like this out around Litchfield park last year. i'll have to think long and hard to remember the details but it worked for the VA refinance. you might check the ADEQ website and see if the community water service is listed there.

 

[Sid Holderly]

We have a subdivision like that. You may have to go back to the original plat to find the shared well statements. One of the lots is dedicated to the common well. The MLS lists them as having a Homeowers association, but they do not, it is the well maintenance agreement that one of the home owners manges and bills the rest when there is a repair and collects a little each year to run the electricity. It is not listed anywhere on the deed or legal description of each lot. Occasionally an agent will have it properly listed as having a shared well. They generally do not have a copy of or link to the well agreement. This well supplies most of the homes along a mile of rural road.

 

[Mr Rex]

We have some of that around here. The one that comes to mind originally had community wells but after the subdivision started to challenge the water quantity available and the quality started to suffer, they tapped into the county water system for their supply, but the subdivisions HOA is responsible for the maintenance of the piping etc inside the subdivision so its still a private water system. I'd check to see if there is a HOA formed and if the water system is discussed there. Kinda like road maintenance agreements, sometimes you have to do some searching. I'd also ask for any title work the lender has to see if its addressed before I spent too much time doing title search type work.

 

[Mike Garrett RAA]

Call the HOC and get an answer. Sounds like a community water system to me.

 

[RSW]

Call the HOC and get an answer. Sounds like a community water system to me.

I think there is a difference in a community water system and a well that provides water for 15 homes.

 

[Mike Garrett RAA]

A shared well agreement, at least in my market, is between usually less than 4 residences. More than that and the state steps in with some requirements usually indicating a community water system.

 

[Terrel L. Shields]

A shared well agreement, at least in my market, is between usually less than 4 residences. More than that and the state steps in with some requirements usually indicating a community water system.

Ditto here,