Private Wells Important
 in Real Estate Transactions

 Most of the rural residential properties in Oregon are still served by private wells. There are few things more important, when it comes to living in the country, than having a good dependable source of water. Yet many property owners, and most purchasers, do not pay nearly enough attention to the well when transferring property.

For the seller, the well is going to be a sure source of headaches unless dealt with effectively. Oregon law requires the seller to have the well tested for nitrates and total coliform bacteria. The testing is required upon acceptance of an offer. Because the test is required "upon acceptance," if the deal later fails and another offer is accepted, the test will have to be done again. The results must be submitted to the State Health Division. The Health Division can require additional tests.

The state-required nitrate and coliform test can cause unprepared buyers real problems. There is no requirement in the law that the results of the test be provided to the buyer. Nor does the seller's failure to comply with the statute invalidate the sale. A buyer will, therefore, want to make certain that their approval of the required test is a contingency of the sale. In this way, the buyer can be assured the test is actually done and that they are aware of, and can approve of, the result.

Another statutory requirement of concern to both buyers and sellers is the statute requiring the recording of well identification numbers and notices in property deed records. The well identification number, obtained from the Water Resources Department, must be recorded in deed records and on the well itself. The statutory notice recorded with the identification number informs landowners of their rights and obligations regarding the use of ground water. Like the identification number, the notice is available from the Water Resources Department.

Obtaining a well identification number and making the required recordings is a duty of the landowner at the time of transfer. There is, however, no penalty for the seller who does not follow the law. Buyers, therefore, often make compliance with the law a contingency of the sale. In this way, the law will be met and the identification and notice recording will not be an issue  when the buyer goes to sell the property.

Statutory requirements aside, domestic wells need to be carefully investigated during any real estate transaction. Given the importance buyers are likely to place on the well, wise sellers will take steps to make certain the well can withstand careful scrutiny before placing the property on the market. This would include getting the statutory requirements out of the way right up front. It would also mean getting the well service people out to test the system to make certain it can deliver adequate water and is otherwise in good working order.

Regardless of the seller's efforts or assurances, a smart buyer will always make investigation and approval of the well and water supply a contingency of the sale. This kind of investigation, including a well flow test, needs to be done by a professional. Buyers will want someone with expertise and local area knowledge checking out the well and the entire system. Getting the necessary information about the well is the first step. The contract for sale will still need to spell out exactly the responsibilities, including any necessary repairs, between buyer and seller.

The sale or purchase of residential real property served by a well is not something to be undertaken lightly. It is important, whether buying or selling, that you know both your rights and your duties. One way to make sure you know your rights and duties is to work with a professional REALTOR® who is trained to help clients navigate the intricacies of buying and selling real property in Oregon. Unlike other real estate licensees, REALTORS® subscribe to a strict Code of Ethics which requires both client loyalty and honesty to all parities. If you are uncertain about your rights or obligations when it comes to buying or selling real property, don't be afraid to seek the professional help you need and give us a call.

2001 Oregon Association of REALTORS®

Clarence & Jeanette Strobel, Principal Brokers CRS/GRI
of
Windermere American West Properties
320 S. Hwy 395
Hermiston, Oregon 97838

Fax (541) 564-0222
Office (541) 564-2020

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