Explaining Private Road Maintenance Agreements
To understand private road maintenance agreements and similar legal documents, you need to understand what private roads are. Most roads are owned by the government, but a private road is owned by an individual or private organizations, such as homeowners associations.
If you want to live on a private road, you usually have to negotiate and sign a private road maintenance agreement. DoNotPay will help you understand its ins and outs!
What Is a Private Road Maintenance Agreement?
A private road maintenance agreement is a contract that outlines who is responsible for maintaining a private road and how the road will be maintained. Homeowners associations usually ensure that the agreed-upon responsibilities in the contract are carried out.
In practice, a private road maintenance agreement is drawn up and signed before the development of the road starts. In some instances, individual property owners can write the contract and sign it when or after they purchase a property on the road.
Under the agreement, parcel owners or associations responsible for maintaining the road see that:
- All signatories contribute to the cost of maintenance and repairs
- Any changes or improvements are approved by property owners
- Other cars and school buses are allowed to use the road
Who Needs a Private Road Maintenance Agreement?
The question that most buyers of property on a private road ask themselves is whether they need a road maintenance agreement to obtain a mortgage. The answer to that question depends on several factors.
Lending companies may:
- Require a private road maintenance agreement from individuals
- Issue a loan without needing the maintenance agreement from buyers
- Set their requirements on a case-by-case basis
Take a look at some of the most common mortgage lenders and what their requirements for a private road maintenance agreement are:
|Mortgage Financing Source||Requires a Private Road Maintenance Agreement|
|USDA||Determined on a case-by-case basis|
|FHA||No, but the road easement is required|
If you want to be on the safe side and avoid having to switch your mortgage contractor last minute, research the requirements before you start negotiating.
What Is a Road Easement?
An easement is a legal right to use a shared private road and perform construction on it. For example, a municipality cannot regulate an easement on a private road unless the homeowners association allows it.
Usually, a private road maintenance agreement grants vehicle and pedestrian access to the road. This means that the property owners, their occupants, guests, agents, and emergency vehicles can use the private road.
If you intend to buy property on a private road, you should ask whether:
- There is a road maintenance agreement in place
- The residents abide by the agreement and what liabilities there are if they don’t
- All residents bear the cost of road maintenance
- There is a reserve account for the expenses of repairs and maintenance
What Can You Find in a Private Road Maintenance Agreement Form?
All private road maintenance agreement forms resemble one another. You should understand the main clauses in these contract templates, including:
- The Recitals—The first section in a private road maintenance agreement identifies the signatories and the private road
- Vehicle and Pedestrian Access Easement—This section states who has access to the road
- Road Manager—The property owners choose one person who is going to review the road and check whether any repairs are needed
- Road Maintenance—Under the agreement, the signatories determine when and how the road will be maintained and who is going to be responsible for it. When repairs are necessary, property owners are notified about it by the road manager, and the price is established
- Cost Sharing—All property owners agree to share the cost of road maintenance, snow plowing, and improvements
- Checking Account—The road manager should open a checking account in a local bank that will serve to accumulate the funds that property owners distribute. The road manager also gives an annual report to all property owners that sums up how much money was received and how much the road maintenance projects incurred
- Disputes—The agreement states who is going to be responsible for resolving any disputes
- Signatories—All property owners have to sign the agreement to make it enforceable
How Can DoNotPay Help You With Private Road Maintenance Agreements?
More often than not, legal documents are a nuisance for people. For this reason, many people decide to hire lawyers to help them review the clauses and negotiate the terms they benefit from. You don’t have to do that.
DoNotPay designed a feature that helps you get any legally binding document you may need! All you need to do is:
- Create a DoNotPay account using any web browser
- Type the name of the contract you need in the search bar
- Provide the necessary information
In under a few minutes, DoNotPay generates your contract—no muss, no fuss! You can print and sign it to make it enforceable.
Some of the most popular contracts DoNotPay can draw up are:
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