Hi Coffecup- A good theory is that nobody as ever wanted to go thru the hassle or the expense of getting a legal document drafted. That might cost $500- $1000 just to do that and record it. Who wants to pay that, when everything is going fine?
Why would the neighbor agree to suddenly get their "own" water (drill their own well)?? That would cost the neighbor $8000- $10000, and there's no way they would agree to that. Unless the seller pays for it for them or something, or part of it.
Yes, I would consult an attorney. And, being a lender, its possible that the mortgage could be an issue. Feel free to call me if you'd like. (I used to live in Turners Falls for a short time....)
Thanks,

Ken L.

I recently worked with a buyer is this situation in Shelburne. First thing is if you need financing, finding somseone who will finance this purchase. Either way cash or financing, I would contact an attorney. You may be able to find more information through town record as well. It was a little extra work but my buyer moved in to the house they wanted.

Haven an attorney draft the language for the contingency. Worth trying but might be tough to get an agreement in place before you purchase the property. Why dont you simply have your buyers agent find out direct from the seller the reason for no agreement? Did your buyers agent check with the town to see if anything is on record? You might also have your buyers agent do a little digging about when the nighbors house was built - perhaps the land was subdivided at some point and they used the shared well system (which you may want to confirm is under code). A last ditch effort might be to contact the neighbor.

Good luck!