Fannie Mae`s traditional loans require that real estate on a private road have an „appropriate, legally enforceable agreement, or a road maintenance agreement.“ Mr Fannie also stressed that the recorded document should contain the following: decision-making power is an important subject that needs to be covered. It forms the basis of the number of homeowners who need permission before certain types of improvements and repairs to common access can be made. Do the parties need unanimous agreement, majority agreement or another authorization number to justify the adoption of the project? What is an emergency that allows an owner to unilaterally repair the access road and ask other homeowners for contributions? Can a majority of homeowners justify a change in the access road from gravel to asphalt? In previous blogs, we have looked at the difference between a private street and a relief, the new New Hampshire law, which requires private maintenance of residential streets in certain situations, and what should include private road maintenance contracts. While an agreement is an important step, the creation of an association can significantly simplify the management and application of private road maintenance contracts. In fact, the FHA does not need a road maintenance contract. The HUD 4000.1 manual states that „private roads, including common entrances, must be protected by registered facilities, permanent ownership shares or owned and maintained by an association of owners (HOA). The release of entries does not require a common maintenance contract. Sharing a private street with your neighbours can be a great way to keep everyone calm – if you`re doing your homework. Chapter 12 of VA Lenders Handbook states that private roads must be protected by lasting relief, maintained by an HOA maintenance contract or a joint maintenance contract, and that roads must have an all-weather surface. Insurers must check these points in the NOV, i.e. in the verification of an AV assessment. The insurer must check whether there is a provision for further maintenance. 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.
These are the questions that road maintenance contracts seek to answer.