REO problem with shared well - HELP! - Posted by Kathryn

Posted by george on September 21, 2005 at 23:08:27:

Go to your county clerk’s office and ask them about the local statues on riparian rights. They should set you straight before you have to invest in an attorney.

Check the wording on the addendum. Is this just disclosure telling you the situation, or is there stipulation that you will get a clean well on the day of closing? And be prepared to have testing done on that day before you sign.


REO problem with shared well - HELP! - Posted by Kathryn

Posted by Kathryn on September 21, 2005 at 20:53:30:

I just sent a bid in on a REO. I got a call back that I have to sign an addendum because the previous owner that lost her house told the REO agent that she was going to poison the shared well on the property. Apparently the woman owned this house and some houses surrounding the property. She kept telling the investors who were checking on the house that she owns the well still and they can’t use it. The REO agent said that there is no city water hookup and another problem - that there is a chance that no new well can be dug on the property (according to the previous owner. The agent also said they are hiring a lawyer to handle. Is this true about you just can’t build a well anywhere near another well? This is in Florida so I am not sure about digging anywhere in this state and I do believe the woman can poison the well. She said she was in her 70’s and one tough cookie. The house is ugly but I am looking at a potential of over 50k after rehab, so I want to get this but will have to pass if I can’t have any water hookup. Any help will be appreciated.

Re: REO problem with shared well - HELP! - Posted by Pat

Posted by Pat on September 22, 2005 at 20:35:07:

In addition to the other suggestions, research the deed to see if there are any deeded water rights attatched to the property.
One thing to consider…when you go to resell the property the buyers’ lenders may balk at the idea of financing a property wihtout it’s own water source. In my area, only a few lenders will do this; the rest want drilled wells on the property. The key to successfully doing this business is simplicity. Problems like this tend to muddy the waters and cut into profits.