Exception: Fannie explains: « If the property is located in a state that has legal provisions that define the responsibilities of landowners for the maintenance and repair of a private road, no separate agreement or agreement is required. There are time bombs in the process of buying a home that can explode in the last hour without preparation. Such a dreaded last-second request sounds like, « Please send us the private road maintenance contract for this road. » Too often, there is no maintenance contract. Then begins the fear with the idea of putting 40 owners on the street to sign an agreement in the next 24 hours. The courtist is then in danger. If you are a real estate agent or mortgage lender, you have experienced this. In the event of repair problems, an individual or group of landowners can solve the problem. But what happens if the road breaks down or if, over time, it is neglected? Mortgage lenders and credit agencies want to make sure the roads stay passable. « The Mortgagee must confirm that the accommodation is equipped with pedestrian access and appropriate access from a public or private street. Roads must be either dedicated to the use and maintenance of the public or kept as private roads protected by permanently registered facilities. Private roads, including common entrances, must be protected by registered facilities, property shares or property and maintenance by an HOA. Common access routes do not require a common maintenance contract. Unless a house is on a subdivision, most owners on private roads decide not to register a road maintenance contract.
The reasons are different. But at least most of the time, one or more owners take care of the road. Even if someone stays the road, no deal can cause problems for buyers. Lenders often require a registered private road maintenance contract. Basically, this is what happens most of the time on private roads. First, the agent is looking for a private road contract that is already in effect. If there is no agreement, the agent and the seller start talking to the neighbors. Not all owners sign. The problem is that everyone between the public road and the house has to approve the road contract. Often it falls apart there. But there`s a solution! Even if it is not a good thing that all owners sign a contract.
Therefore, if not all owners sign, the buyer could sign a private road maintenance contract. In principle, the buyer agrees to keep the road private from the state road to the land. As a general rule, the final lawyer prepares the agreement, the buyer signs, and it is registered at the closing. If you go down that road, you will discuss the agreement with your lawyer. As a buyer, it is important to understand the legal requirements. The example above is not so scary, but what if you find a home in a small community, on a rural road or on a gravel/dirt road? Often there is no link and there is no agreement for road maintenance.