Are you looking for the requirements of the FTA road maintenance contract? You`re in luck! This credit program does not require a private road maintenance contract. In case of ownership interest, protection by a permanently registered easement or when an HOA owns and maintains the road, the agreement is not necessary. Normally, every street would have one. Simply put, private roads are roads that are not maintained by the state. These roads are maintained by someone other than the government, for example. B by property owners or an association of owners (HOA). A common misunderstanding is that all private roads are unpaved roads, but this is far from fair. In fact, there are a number of very beautiful, large neighborhoods with private streets. For example, a large golf community might have private roads. Condo communities may also have private streets.
Veterans` administration is stricter on private roads than the FTA. The manual goes, chapter 12, says, “Private roads must be protected by a permanent easement and maintained by an association of owners or a common maintenance contract.” Exception: Fannie states: “If the property is located in a state that has legal provisions defining the responsibilities of property owners for the maintenance and repair of a private road, no separate agreement or arrangement is required.” There are time bombs in the home buying process that can explode in the last hour without preparation. Such a dreaded request at the last second looks like: “Please send us the private maintenance contract for this road.” Too often, there is no street maintenance contract. Then the fear starts with the idea of putting 40 property owners on the street to sign an agreement within the next 24 hours. The closure on time is then in danger. If you are a real estate agent or mortgage lender, you have experienced it. Fortunately, in California, there are at least a few basic safeguards related to road maintenance. California Civil Code Section 845 provides that if there is a private road for the benefit of multiple owners, the costs of maintaining the road are proportional to the use by the easement. The law also provides for a recourse for a contribution action that will allow paying owners to recover a proportional share from non-paying owners. This is a step in the right direction, as it allows for simple ways to collect maintenance costs, but it`s not enough to have homeowners protected for most types of problems….