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  #1  
Old 03-14-2008, 07:27 AM
Frederick's Avatar
Frederick Frederick is offline
 
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Location: South Jersey
State: New Jersey
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Default New Word on Private Road Maintenance Agreement

The answer to an often asked question:

https://www.efanniemae.com/sf/guides.../2008/0801.pdf

As per Announcement 08-01 January 31, 2008

"If the property is located on a community-owned or privately-owned and maintained street, Fannie Mae will now require one of the following:
1. An adequate, legally enforceable agreement or covenant for maintenance of the street. The agreement or covenant should include the following provisions and be recorded in the land records of the appropriate jurisdiction:
o Responsibility for payment of repairs, including each party’s representative share;
o Default remedies in the event a party to the agreement or covenant fails to comply with his or her obligations; and
o The effective term of the agreement or covenant, which in most cases should be perpetual and binding on any future owners.
If the property is located within a state that has statutory provisions that define the responsibilities of property owners for the maintenance and repair of a private street, no separate agreement or covenant is required.
2. If the property is not located in a state that imposes statutory requirements for maintenance, and either there is no agreement or covenant for maintenance of the street, or an agreement or covenant exists but does not meet the requirements listed above, the lender must indemnify Fannie Mae for any losses or expenses it may incur due to the physical condition of the street or in order to establish and/or retain access thereto .
The property must continue to meet all other requirements, including any requirements related to adequate vehicular access, as outlined in the Selling Guide."

Last edited by Frederick : 03-14-2008 at 07:30 AM.
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Old 03-14-2008, 08:20 AM
Ted Martin Ted Martin is offline
 
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Default

It's about time.

I've been hammered for years when I bring this subject up in an appraisal, I now have written support.
  #3  
Old 03-14-2008, 08:49 AM
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Marcia Langley Marcia Langley is offline
 
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Yes, that clarity was a long time comming.

I guess when Fannie actually has to take posession, there is more concern about the details.
  #4  
Old 03-14-2008, 09:08 AM
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CANative CANative is offline
 
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California is "a state that has statutory provisions that define the responsibilities of property owners for the maintenance and repair of a private street." It's in the Civil Code. The remedy for stubborn property owners is litigation.
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  #5  
Old 08-12-2008, 11:10 AM
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Midwest Guy Midwest Guy is offline
 
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This was the help I was looking for!!!
Quote:
Originally Posted by Frederick View Post
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0801.pdf[/url]

As per Announcement 08-01 January 31, 2008

If the property is located within a state that has statutory provisions that define the responsibilities of property owners for the maintenance and repair of a private street, no separate agreement or covenant is required.
Guide."
  #6  
Old 08-12-2008, 02:11 PM
Mary Tiernan Mary Tiernan is offline
 
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Location: Michigan
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Default

Ok, in my area property owners often have handshake agreements, and I clearly explain such in the report.

It is not my responsibility to get the homeowner to get an agreement now, is it? Are these underwriters' instructions or appraiser's instructions?
  #7  
Old 08-12-2008, 07:05 PM
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Couch Potato Couch Potato is offline
 
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State: North Carolina
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For quite some time the selling guide has contained the following:
Quote:
If the property is not situated on a publicly dedicated and maintained street, then it must be situated on a street that is community owned and maintained or privately owned and maintained. There must be adequate vehicular access and there must be an adequate and legally enforceable agreement for vehicular access and maintenance.
It is nice that they describe what is meant by adequate agreement, but it is nothing more than what common sense would dictate.
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  #8  
Old 08-12-2008, 07:46 PM
BRCJR BRCJR is offline
 
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State: Virginia
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Quote:
Originally Posted by Mary Tiernan View Post
Ok, in my area property owners often have handshake agreements, and I clearly explain such in the report.

It is not my responsibility to get the homeowner to get an agreement now, is it? Are these underwriters' instructions or appraiser's instructions?

Take a pic of the property owners shaking hands and pointing toward the private road (tell them to smile!)
lol-lol-lol
  #9  
Old 08-13-2008, 06:23 AM
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Carnivore Carnivore is offline
 
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State: North Carolina
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Quote:
Originally Posted by Couch Potato View Post
For quite some time the selling guide has contained the following: It is nice that they describe what is meant by adequate agreement, but it is nothing more than what common sense would dictate.
As far as we are concerned common sense does rule. We state in limitations and certifications of most lender centric assignments that we are not responsible for matters of a legal nature. Thats pretty clear to me.
  #10  
Old 08-13-2008, 08:21 AM
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Scott R Marshall Scott R Marshall is offline
 
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Location: Rio Rancho, NM
State: New Mexico
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Default

I may be wrong for doing this, but I always give my client a heads-up when I find out there is a private road that they may very well need documentation showing this agreement. While at the appointment, I ask if the homeowner has a copy of the agreement but they very rarely do. As far as I'm concerned, I've done my due diligence.
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