Borehole and Water Infrastructure Purchase Agreement

What a good one includes

• A detailed inventory specifying the physical assets being transferred, including pump models, casing depths, filtration units, and storage tanks.
• Legal documentation transferring all water abstraction licenses, environmental permits, and subterranean rights to the buyer.
• Certified laboratory reports confirming the current water quality and the historical yield output of the borehole.
• A clear payment schedule, including any escrow provisions held until final flow rate testing is completed post-transfer.
• Explicit warranties regarding the operational status of the mechanical equipment and the structural integrity of the borehole shaft.
• Defined access rights or permanent easements allowing the buyer to maintain and service the infrastructure if it sits on shared land.

Common mistakes to avoid

• Failing to verify that the water abstraction licenses are legally transferable under local environmental laws before closing the deal.
• Relying on outdated water quality or yield tests instead of requiring a fresh hydrogeological assessment right before the transfer.
• Neglecting to define who is responsible for subsurface failures or contamination that occurs immediately after the handover.
• Omitting explicit easement rights for maintenance access when the borehole is located on property retained by the seller.

Frequently asked questions