Private Road Maintenance Agreement in a Condo complex

[Pete Humphrey]

I am being driven crazy by a processor for a direct lender I work for. She called me regarding a condition on an appraisal I did for a condominium for sale. It seems that underwriting is demanding that there be a private road maintenance agreement recorded with the county, which according to this processor, there is not. She called me to question whether or not the road is actually private. My original indication was based on the plat map (which only shows the main blvd outside the complex and no streets shown within this very large twin-style condo complex with several streets of different names). But just to make sure I called the city and yes indeedy, it is not a public street. I relayed this info to the processor who told me that the loan officer is very upset that I checked the private street box (oh boo-hoo!) Just for my own info I researched the CA civil code and I found this in Appendix E - California Civil Code Section 845

§845 Private Easement Maintenance by Owner of Easement or Land Easement Attached to - Apportionment of Cost - Actions

(a) The owner of any easement in the nature of a private right-of-way, or of any land to which any such easement is attached, shall maintain it in repair.

(b) If the easement is owned by more than one person, or is attached to parcels of land under different ownership, the cost of maintaining it in repair shall be shared by each owner of the easement or the owners of the parcels of land, as the case may be, pursuant to the terms of any agreement entered into by the parties for that purpose. If any owner who is a party to the agreement refuses to perform or fails after demand in writing to pay the owner's proportion of the cost, an action for specific performance or contribution may be brought against that owner in a court of competent jurisdiction by the other owners, either jointly or severally.

(c) In the absence of an agreement, the cost shall be shared proportionately to the use made of the easement by each owner.

I emailed this to her this weekend just to make her Monday morning more special.

This is the first time I've even gotten this as a condition. In fact, as I told her, I don't think this is MY condition - it's for her and her loan officer to research. My job is just to say whether or not it is private or public - period. I told her I would be happy to make an addendum commenting that the roads were well maintained. The street photo even shows that they look fine.

Anyone ever been down this road and have any input?

 

[DMZwerg]

But just to make sure I called the city and yes indeedy, it is not a public street. I relayed this info to the processor who told me that the loan officer is very upset that I checked the private street box (oh boo-hoo!) Just for my own info I researched the CA civil code and I found this in Appendix E - California Civil Code Section 845

So, it is a private road, you have verified it is a private road, you checked the box for private road, and have checked into whether or not there is a maintenance contract.

I really don't see the problem from your standpoint. The loan officer & lender may have a problem, but I wouldn't think it is yours.


I run into private roads fairly often. In one case a condo had a number of private roads running through the complex, had a service contract with the local municipality and the municipality renegged on it. As I recall there are as many as a couple hundred units in the complex among various duplex sideXside, quad, and 8-plex townhouse condos so the typical standard in the area of "3 residences maximum for a private road" should apply (and does most everywhere else in the county) doesn't due to the condo/PUD status of the development. Private roads and condos can get quite interesting

 

[Couch Potato]

So you are saying the condominium complex has no provision to maintain the roads of the condominium? Or are you saying the road to get to the condominium is a private road outside of the condominium?

 

[Mike Kennedy]

Condo Prospectus on file with "the city" Building/Zoning Department?

 

[Lee Lansford]

Back to the OP:

If the HOA is responsible for maintenance of the interior roads in the project, how might this be any different from any other item in the budget?

Assuming that at least some of the market data analyzed in the SCA is from the subject's project, the market's reaction to this status has been analyzed.

The above stated, what further are you being asked to do?

 

[Couch Potato]

I don't fully understand whether the private road is to the condominium, or the condominium unit, but the either way the processor is asking for something they do not need given the property is in California where the law provides a default maintenance agreement for all private roads. It could be a big deal here in North Carolina, but not in California.

 

[Mike Boyd]

I would tell them to check the by-laws of the HOA. In CA we are not so old that there are any unregulated condo developments. That is the underwriter's job. If they want you to provide page and paragraph# it will be a new assignment and fee.

Hey.....they are not giving US any breaks, why should we give THEM any?

 

[Howard Klahr]

My original indication was based on the plat map (which only shows the main blvd outside the complex and no streets shown within this very large twin-style condo complex with several streets of different names). But just to make sure I called the city and yes indeedy, it is not a public street.

Based on what you have described, the road is public not private. The question on the form relates to the road external to the project not the internal road within the complex.

As Couch Potato and Lee have already pointed out the roads internal to the development are maintained by the association by default. Read the declaration of condo.

 

[Lloyd Bonafide]

Based on what you have described, the road is public not private. The question on the form relates to the road external to the project not the internal road within the complex.

It's a gray area, but Howard is basically correct, (IMO). When the form asks for "off-site improvements", that can be construed as off of the entire condominium site, so some appraisers will check "public street" in your situation. But personally, if the subject's private street is a different street name than the public street, I would check "private street" also.

 

[PropertyEconomics]

If the condo documents do not address the street maintenance ... Id be suspect what else they dont address.

I think someone hasnt looked hard enough at the existing documents. Id bet money its there.