Many half-timbered houses are located on land that is accessible only by a common private road. Sharing a private street with your neighbours can also weigh on the best friendships. Smoldering anger over private road maintenance contracts can lead to noisy struggles at neighbourhood meetings and even legal action. In one extreme case in rural Colorado, tensions were so high that neighbors threatened neighbors with gunpower. Showdowns in Hatfield and McCoy are rare, real estate experts say, but to avoid bad feelings – let alone potential complaints – it`s important to understand private street laws and understand what you`re getting into when buying land accessible through a common private street. Here we help you navigate the many possible pitfalls of private road ownership, including road construction, maintenance contracts, property costs, private road laws and access. Sharing a private street with your neighbors can be a great way to keep everyone calm – if you`re doing your homework. 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. 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. “Ordinary evolution, unless you have a little scum, whoever does it will have provisions related to street maintenance,” says Richard E. Glaze, a real estate lawyer in Winston-Salem, North Carolina. “If there are no maintenance rules, you`re in trouble.” Fannie Mae`s traditional loans require that real estate on a private road have an “appropriate, legally enforceable agreement, or a road maintenance agreement.” “The mortgage must confirm that the property is equipped with safe pedestrian access and proper access to the vehicle from a public or private road. 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. Public housing companies that offer down payment allowances or subsidies generally follow the first mortgage guidelines. If you use a first FHA mortgage with DPA, FHA should predominate in road maintenance guidelines.