I'm attempting to purchase a home at the end of a private lane and was told that I need a "Private Road Maintenance Agreement" or I won't be able to get a loan. Where do I get one of these? If I write my own, what all needs to be in it? Any direction in this matter would be appreciated.
First, you don't write it. You need to obtain it from the seller, it's the seller's responsibility to offer the property for sale under the terms agreed to, with financing. Road agreements are required by lenders, it is customary and should have been known by the seller, especially any listing agent.
The agreement is made by and between all owners of properties adjacent to the roadway or used by them. That means everyone along the road must agree. If presented properly, it's time consuming but can be obtained. Anyone not agreeing could be sued, and they would probably lose.
It's also an oversight by the party who sold off parcels along the roadway, if one subdivided.
The agreement names each property by description and stipulates how and when road maintenance is to be made as well as how expenses will be shared and how payable including enforcement. The roadway needs to be described as to it width and directions by the centerline of the easement. It may require a survey to describe the road properly but often a general direction is acceptable.
If the seller fails to provide an acceptable agreement you could ask for your money back together with expenses.
A title company can probably give guidance, your lender may state standard requirements, but your seller needs to see an attorney or perhaps the title company can help.
All conventional lenders will have these requirements, it's standard, until the seller obtains an agreement his property will be rather unmarketable, limited to cash buyers and even they would be advised to obtain the agreement.
The issue is, if the road were washed out or destroyed by some event, who would pay for repairs? No lender will take a property that you can't get to! :)
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