- Effective January 1, 2017, all inactive taps (regardless of status) are subject to standard water rates. (Prior to this date, inactive taps were subject to annual fees.)
- Inactive taps with clear title may be sold to the District for $1,500 (“buy-backs”).
- Inactive taps are subject to revocation due to nonpayment of fees and charges, after providing sufficient notice to the owner and a public hearing by the Board of Directors.
Transfer of Inactive Taps
PROVIDE DOCUMENTATION TO THE DISTRICT SO THAT YOUR TRANSFER MAY BE UPDATED FOR BILLING WITHIN 10 DAYS OF YOUR TRANSACTION.
The District does not act as a broker or advisory for selling taps; instead, you should consult an attorney, realtor, or title professional. If you are interested in buying or selling an Inactive Tap, please read below and make certain you understand the policies and procedures that will be APPLICABLE TO THE SITUATION before contacting the District. The Tap Type, by definition (Active, Inactive, Assigned, Unassigned, Connected, Unconnected) will determine what fees may or may not apply, as well as the District’s Policies.
The District does not have a standard form for transfers of inactive taps, because they often get transferred under different circumstances and the District shall not act as a Recorder. The District is not obligated to act upon a transfer document if it is incomplete or is otherwise questionable. A transfer should include the following:
- Describe the tap number and type of tap in the document (e.g., Lookout Mountain Water District Inactive Tap #12345)
- The document used must be legitimate and intentional; provide typical details such as effective date, type of tap, and how it is related to the land (i.e., Assigned or Unassigned); be duly executed by the authorized owner as seller in addition to buyer; include payment information; and should be notarized. Both buyer and seller should acknowledge such things as:
- The parties are aware that the use of the tap is subject to the District’s policies.
- The parties who will be responsible for any outstanding charges and fees related to the tap and its ability to be placed in service/activated/connected.
- Status of tap (e.g., it is sold free and clear of encumbrances, warranties or guarantees are being offered, etc.).
- The buyer will provide billing and contact information so that the District can update the billing account.
- The document will be recorded with Jefferson County Clerk and Recorder.
- A copy of this recorded document will be supplied to the District within 10 days so that the District can update the account.
LEGAL GUIDANCE SHOULD BE OBTAINED FROM YOUR ATTORNEY. DISTRICT POLICIES, RULES AND REGULATIONS ARE AVAILABLE ON THIS WEBSITE UNDER PUBLICATIONS AND RECORDS.
How is a Tap Valued?
It depends… Since the District has never sold taps, only the market determines the value of a LMWD tap. For a buyer, a tap may have very low value or very high value depending on its ability to be used at a particular location, alternatives available for that location, and the additional costs that may apply to the tap at that location. A tap may be valued higher or lower by the seller depending upon what conditions a tap was originally acquired and how long the tap has been held.
Estimated range: $1,000 to $40,000
Public Forum for Inactive Tap Buyers and Sellers
If you are interested in purchasing or selling a tap and would like to be added to this list, please send an email with the email address you'd like to be posted below.
|Interested Buyer||Interested Seller|
|1+ tap: firstname.lastname@example.org
1 tap: email@example.com
|1 tap: firstname.lastname@example.org
1 tap: email@example.com
2 taps: firstname.lastname@example.org
Disclaimer: The District does not explicitly support or approve of transactions that may result from this post. The District and its agents cannot act as a broker for tap transfers, reassignments, purchases, or sales of taps.