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. The USDA meets the requirements of the FTA. USDA Guaranteed loans require that private roads be protected by permanent registered relief or that the road be maintained by an HOA. This loan program does not require proof of a private road maintenance contract. Keep in mind that you must meet the USDA eligibility requirements to finance your home with this type of credit. The biggest problem arises when there is no private road agreement. Worse still, the idea of getting about 40 landowners to sign an agreement before closing. Fortunately, there are some possible solutions to this problem: decision-making power is an important issue 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? There are, of course, exceptions and circumventions to these requirements. For example, if there is a legal provision that defines the responsibilities of landowners for the maintenance of their private roads, Fannie Mae does not require a separate agreement.
This does not mean that all lenders will follow suit. And there`s certainly no harm in having an agreement that addresses maintenance issues the way you want to address them! There are time bombs in the process of buying a home that can explode in the last hour without preparation. Such a dreaded last-second request sounds like, « Please send us the private road maintenance contract for this road. » Too often, there is no maintenance contract. Then begins the fear with the idea of putting 40 owners on the street to sign an agreement in the next 24 hours. The courtist is then in danger. If you are a real estate agent or mortgage lender, you have experienced this. Fannie Mae`s traditional loans require that real estate on a private road have an « appropriate, legally enforceable agreement, or a road maintenance agreement. » Fannie also points out that the registered document should contain the following: to lend on a property located on a private road, mortgage companies and banks need a copy of the registered road maintenance contract.