Community well in potential purchase

[Mike Nichols]

We are looking at putting an offer in on a couple duplexes. We have a couple of concerns. First would be the wells for the duplexes are community wells that are not owned by the current owner of the duplexes. One well feeds a gas station/grocery store and a couple other building along with one of our potential units. There is a second well on the other side of the street that feeds other duplexes and couple SFHs. The well owner is looking to sell the wells right now.

What legal right do the duplexes have to the community well? 
If the well system fails what recourse does a home owner have if the owner does not fix it in a timely manner? 

We are considering putting in a well per house, this will be a significant outlay of money. Not sure what kind of agreement is in place that would make the home owner liable to pay for the community well even if we are not drawing on it anymore. Waiting for a reply back from the owner on this. 

The current agreement is each duplex pays $125 per quarter.

The other issue I have is the septic system looks like a forest. There are some nice looking trees on the property where the septic is supposed to be located. Each duplex has its own septic system with approximately 1000 gallons. We are thinking about requiring an inspection on the septic system.

Would those that have had to deal with septic issues make it a contingent to be able to walk away, or should we just assume the main field is bad and we will have to move to the reserve and take the price off the top?

We are located in Virginia for those that might have experience in these areas.

Thanks,
Mike

[Patti Robertson]

Wow this is an interesting scenario @Mike Nichols.  What market is this in?  I’ve never run into a community well in Hampton Roads.  Underground - and sometimes air - rights don’t always convey with the surface land.  You would need to pull title and read the deed.  Think of people buying the rights to under ground oil reserves and it will make sense.  It would be worth the $100 or so that a title company will charge to pull the deed and interpret it for you.