Many times in the past buyers have called about properties that they wanted to view and potentially buy. Only to find out that a financing option was not available due to the access being from a private road. We have told the sellers the solution is to get everyone on the road to sign a joint maintenance agreement. This would state who would take care of the plowing, and general up keep of the common road…and who pays for that. This document would need to be recorded and run with the property deed. The problem is not everyone is willing to do that. If you got your work done for free by one neighbor with a plow, why put yourself on the hook for this cost? The answer is if you don’t there can be a real problem getting a loan on the home you want to sell. New Hampshire has come up with a solution if adopted.
Realtors Call for Action success:
House passes private road maintenance agreement legislation
After three-and-a-half years of debate, the NH House of Representatives finally passed legislation clearing the path for both the Veterans Administration and Fannie Mae to take a mortgage on a private road in New Hampshire even if there is no written agreement between the property owners.
Six hundred Realtors responded to NHAR’s Call for Action alert on Senate Bill 39. After a brief debate, the House voted on a voice vote to pass the legislation. The Senate had already passed the bill earlier this year.
The House version of SB 39 makes it clear that the intent is to codify existing common law practice in the enforcement of easements. The bill states that in the absence of an agreement governing maintenance of a private road, when more than one residential owner enjoys a common benefit from a private road, each residential owner shall contribute equitably to the reasonable cost of maintaining the private road. The legislation applies only to residential properties while making it clear that none of the new language applies to Class V and Class VI roads.
Both the VA and Fannie Mae require written agreements among all property owners unless there is a state law governing the maintenance of private roads. SB 39 is designed to provide that minimum requirement.
The Senate will still need to agree to the House version of the legislation before SB 39 can be sent to the Governor for his signature.
Let us hope the Governor signs the bill.