Road maintenance agreements

[jp1]

I currently own property on a private road here in Tennessee and the homeowners are trying to put together a road maintenance agreement for the upkeep of the stretch of road (1.5 miles). The road is currently gravel and has been for over 40 years. There are about 7-8 actual homes along the road and several more of us (like me) that only own undeveloped property.

I am currently not real keen on the idea of signing a formal agreement, just because I do not wish to be bound to desires of what potentially the other owners want. I have and will continue contribute to routine maintenance of the roadbed. No road maintenance is currently written into my deed.

Any lawyers or loan officers on the board have thoughts or suggestions on road maintenance agreements or have any experience with them? Is this something I should sign or not?

 

[Thunder Good-Oil]

I'm neither of those but I'm curious... is the cost split equally or based on frontage?

Personally I'd sign nothing except maybe an understanfing that resources will be pooled every x number of years to do maintenance with an automatic annual deferral of the work if the majority voted to do do.

There's always somebody that will take advantage of it if a set amount of money is put into a fund every year. How is the work bid out? Does everybody sit in on the bidding process or is a designated individual arranging it?

Is there a company that can be hired to take care of the road on a long term basis? If so then the cost can be determined on the front end and that company can be responsible for collecting the money from every body. Otherwise what do you do if somebody can't or won't put in their share?

 

[Orangesmokey]

I know nothing at all about this but I would say there would have to be a way to work it out where it's like a HOA. Everyone has a vote and majority carries.

Also I wouldn't think they could make you sign anything that you don't agree with unless there is already some kind of HOA agreement in place.

I'm interested in seeing the responses you get to this.

 

[AirVol]

If you ever sell, some lenders require a RMA. On the plus side, it will help the value of the property. Best way to determine who pays what is, the owner at the end of the road pays more because he uses the full length of the private lane. Get what I'm saying? Best advice I could give you is contact a local real estate attorney on your rights of ingress and egress.

 

[jp1]

I'm neither of those but I'm curious... is the cost split equally or based on frontage?

Personally I'd sign nothing except maybe an understanfing that resources will be pooled every x number of years to do maintenance with an automatic annual deferral of the work if the majority voted to do do.

There's always somebody that will take advantage of it if a set amount of money is put into a fund every year. How is the work bid out? Does everybody sit in on the bidding process or is a designated individual arranging it?

Is there a company that can be hired to take care of the road on a long term basis? If so then the cost can be determined on the front end and that company can be responsible for collecting the money from every body. Otherwise what do you do if somebody can't or won't put in their share?

The cost is to be figured on a formula based on distance of property down the road to be maintained. Basically they know about how much it will take to maintain the road on a yearly basis and the formula takes that into account.

I will be the first to say that I agree the formula is as fair as its gonna get. Basically any large expenditures out of the fund requires a majority vote before it passes.

My hesitation with signing the agreement is I cannot predict what the future will hold. For example, what if a majority decides to asphalt the entire length of the road at a substantial cost and I dont want to pay? What if they want to put an expensive elaborate gate at the entrance? If I dont sign the agreement I wouldn't be legally bound to do so.

The flipside of the argument, if/when I decide to build a house on the property I may need a RMA to secure the loan. Some lenders require this because the state of TN doesnt have a law in place requiring road maintenance that I am aware of.

I can see the good and bad in signing the agreement ( you guys are right its basically like a HOA fee but it could be limitless). Im just torn on the right thing to do.

 

[jp1]

If you ever sell, some lenders require a RMA. On the plus side, it will help the value of the property. Best way to determine who pays what is, the owner at the end of the road pays more because he uses the full length of the private lane. Get what I'm saying? Best advice I could give you is contact a local real estate attorney on your rights of ingress and egress.

You are dead on here as far as my research into the matter. Im in the process of contacting a real state attorney to get their legal advice.

 

[Thunder Good-Oil]

Would the county be willing to take it over if it's paved?

 

[jp1]

Would the county be willing to take it over if it's paved?

They might be willing to take it over regardless. It meets all the requirements that my county requires. I would be all for turning it over to the county, however the other homeowners are not interested because the like the privacy that it provides. They can legally tell people to leave the property because it is posted, but there really isnt anything stopping someone from driving down the road.

 

[Thunder Good-Oil]

What would happen if a sinkhole formed about halfway down? Would the owners beyond it just be SOL?

 

[ainge10heisman]

All of that is pretty dang stupid.

 

[jp1]

What would happen if a sinkhole formed about halfway down? Would the owners beyond it just be SOL?

No all of the owners would be responsible for repair of the sinkhole, regardless of location. The yearly allocation, which is pro-rated, is for maintenance of the entire stretch of roadway.

 

[Thunder Good-Oil]

No all of the owners would be responsible for repair of the sinkhole, regardless of location. The yearly allocation, which is pro-rated, is for maintenance of the entire stretch of roadway.

I meant if it was to happen before you have an RMA.

 

[Coug]

I currently own property on a private road here in Tennessee and the homeowners are trying to put together a road maintenance agreement for the upkeep of the stretch of road (1.5 miles). The road is currently gravel and has been for over 40 years. There are about 7-8 actual homes along the road and several more of us (like me) that only own undeveloped property.

I am currently not real keen on the idea of signing a formal agreement, just because I do not wish to be bound to desires of what potentially the other owners want. I have and will continue contribute to routine maintenance of the roadbed. No road maintenance is currently written into my deed.

Any lawyers or loan officers on the board have thoughts or suggestions on road maintenance agreements or have any experience with them? Is this something I should sign or not?

Ever thought of getting bids on asphalting the road just to see how much it'd cost?