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Manufactured Home, Deeded Access To Well

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Blue1

Elite Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
California
Since this is a manufactured home, I am placing it here but the question pertains to the well which is not on the subject property but, the subject property has deeded access to the well. Anyone ever run into this situation? What are the pitfalls? Disclaimers? Don't even do it?

I would include a copy of the deeded access in the body of the report and then make extraordinary assumptions that the water is potable and that the access will not be taken away.
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
I would include a copy of the deeded access in the body of the report and then make extraordinary assumptions that the water is potable and that the access will not be taken away.

Yes and add an estimated cost to cure to put in their own well. It's also highly likely that underwriting will not accept this deal until the subject has it's own well. I've actually found an adjustment of about $2,000 - $2,500 here for that which is close to the cost to cure here for a 'normal' well. Some wells could cost a lot more so make it subject to a well driller's estimate also.

I have seen a couple of them where the neighbors did have a written agreement and payment for the water. Some UWs will accept this situation.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
I've hit numerous subdivisions with "community" wells that serve several homes. Generally, there is an agreement set forth in the deeds wherein access is granted for maintenance and usage to whatever site has the well. All I've ever done is disclose it and mention that the water system is a private system not governed by state regulations. If the property historically has had good water pressure, etc., then I don't adjust. Drilling a well on site may not be possible due to city/county/state regulations, so a cost to cure is not always possible. Further, on some sites, the wells can run 800 feet to good water. At $20 per foot in this market, that's $16,000 for a well.

Roger
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
This is a common occurrence in the Wickenburg area, because it can cost $15,000 to $25,000 to drill a well. Therefore, three parcel owners will draw up an agreement, record the agreement and drill a well with three pressure tanks to provide water for three homes. As long as everything is spelled out regarding maintenance, access, costs, etc, and that agreement is recorded, lenders are willing to loan on a property with a shared well. FHA has the statement in the National HOC Reference Guide that a shared well shall service no more than four living units or properties.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
It's also highly likely that underwriting will not accept this deal until the subject has it's own well.

can be the case here if no deed, but deeded or easements, our UWs are accepting not only wells off site, but springs. And our local Health Dept. requires a permit for shared wells of 4 or more people.
 

Caterina Platt

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
New Mexico
We have many cases of shared wells here also. Documentation of access, easement on the affected property for the well, and a well share agreement are typically good enough for the underwriters. Knock on wood, no problems yet.

If you disclose it, the underwriters should do their due diligence in ensuring all the above items are in order. If you are particularly concerned, I have made my appraisal subject to review and acceptance of the well share documents as provided by the title company. Mixed reviews on this method. Some are happy you made sure it was brought to their attention, some are just ticked cuz there's a condition to remove. :rolleyes:
 
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