Rural Estates Newsletter Spring 2021 - Flipbook - Page 14
5 – Private water supplies – problems
and solutions
Solicitors stifle an inner groan when they learn that the rural cottage or
estate they are instructed to sell is fed by a private pipe from the mains
(a private distribution network (PDN)) or a private water supply (PWS).
Either are likely to make problems in a sale, unless the difficulties can
be addressed early.
Katy Grylls
Snowdrop Cottage
A landowner, Mr Crocus, wishes to sell Snowdrop Cottage which is served by an old
private waterpipe. From the mains supply on Thorn Road the water pipe crosses an arable
field (once owned by Mr Crocus), connects to Snowdrop Cottage and goes on to serve
three other nearby cottages previously owned by him. Mr Crocus’ long-suffering land
agent reads the water meter at the mains, is invoiced by the utility company for the water
consumed and claims reimbursement from the cottages. It all takes forever and everyone
grumbles that the water “tastes funny”.
Snowdrop Cottage is the last property owned by Mr Crocus in the area and he wishes to
be rid of the responsibility of invoicing the cottages. Unfortunately, his solicitors seem to
have ignored the private pipe in all previous sales so there are likely to be difficulties with
the sale. A potential buyer will be concerned about the lack of express legal easement
for the pipe over the field between the cottage and the road. If the pipe leaks, who is
responsible for repair? Does Snowdrop Cottage even have a right of entry to repair?
Who is responsible for any damage to the farmer’s crops? A buyer may be reluctant
to take on the task of the management of the PDN, including the burden of billing the
other cottages. A buyer may also worry that the PDN constitutes a ‘Regulation 8 Supply’
(under the Private Water Supplies Regulations 2016) such that the local authority will be
concerned to include it within its risk assessment and monitoring programme.
What to do? First, establish the facts. This may mean a review of the title, an inspection
of the property and a basic services plan to show the PDN route. These will inform the
drafting of cross rights in the transfer (if required). Defective title indemnity insurance
may be an option in relation to the lack of legal easement, but it is not a solution to all
the questions above. It may be worth approaching the farmer to see if he will grant a new
easement for the pipe across the field. Another option to explore might be to require
the buyer to disconnect and find an alternative water source, perhaps by connecting
directly to the mains with a new pipe or even by installing a borehole. These obligations
can be supported in the sale contract. If these are not possible, can the utility company
be persuaded to adopt the PDN? An alternative would be to sell Snowdrop Cottage with
the problem unresolved and an obligation on the buyer to administer the water supply in
the sale contract. This approach might make the sale suitable for an auction (where buyer
due diligence is often limited).
14
Rural Estates Newsletter
Spring 2021
