They don't care about title (now) but somehow feel emotional obligated or erroneously believe they are legally obligated to pay.This, of course, is just one speculative theory.

Lots of emotions as they declined in health there.  

Perhaps there was an older shallow well, and then the owner had a deeper well dug but never got around to hooking it up?  

If it's already in poor condition, then they don't have that to worry about.Personally, I'd dig a little deeper on this deal and probably would want a lower price to make it work.Good luck.

Know your numbers, get to know your seller, try not to let emotion affect your negotiation, and go in with confidence.

There's emotion invested into this property already.Now I'm sure that should you proceed to get these two properties and were to raise the capital needed, everything would run just fine.

@Nathan Churchill -- I second that emotion with the support found here!  

Just stick to your numbers and don't get emotionally attached to any property..And also driving around in the area you like helps.

First their is never any tolerance for emotions where business and money are involved.

Sounds like you did a great job of not getting emotionally invested and "making your money when you buy".