Private roads are everywhere in Maine.
Whether it’s used to access a rustic camp or a well-heeled home, how a private road is maintained and by whom are important considerations in a prospective home purchase.
And in a competitive housing market where due diligence may be eased in exchange for a more attractive home bid, not understanding how a primary access road is maintained could potentially present some unpleasant discoveries after the purchase.
As a member (and current president) of a road owner’s association, there are a few things I wish I had known before I purchased my home. For this reason, as president of our association, I happily and openly provide information to realtors of prospective buyers when asked.
Transparency is a benefit to both purchasers and our association, particularly if it’s a purchaser’s first experience living on a private road.
Here are a few things to consider.
Is access and maintenance of the road overseen by an association or by an informal group of homeowners on an ad-hoc basis?
If by an association, find out how the association is structured. If it is a legal entity of some kind, it provides more consistency and clarity on responsibilities of association members. Decisions made by an informal group could potentially prove more challenging and perhaps less transparent.
If it is overseen by an association/legal entity, request a copy of the Declaration of Covenants or governing documents.
Make sure you understand the rules/regulations ahead of the purchase. Get a copy of the Declaration of Covenants or whatever governing documents are in place to make sure you understand the do’s and don’ts for the property.
While the primary purpose of a road owner’s association is for the upkeep of a private road, it may contain other provisions you may not have considered.
For example, a Declaration of Covenants may provide that the property is restricted to residential use. So, you may not be able to operate a business on your property.
Find out as much as you can about fees and/or assessments.
Know how many households share in the financial responsibilities and what the fees or assessments are spent on. Also know how fees and assessments are established and who establishes them.
Know the power of the officers and if they can establish fees and assessments without a vote of the association. Also know what the fees and assessments have been historically.
Finally, make sure you know if there are any outstanding fees for which you will be responsible once you have purchased the property.
In our case, the association had been involved in a legal dispute with neighbors prior to us purchasing our home. Upon purchase, we discovered we were expected to chip in a portion of legal expenses incurred before our purchase.
So, check to see if there are any outstanding fees and/or assessments for which the seller is or may be responsible.
Is the road/association insured?
Make sure the association is insured for liability arising from the usage of the road. Carrying a liability insurance policy makes sense for the benefit and protection of the association and officers.
It may not be possible to obtain this level of detail in advance of a purchase. But a prospective buyer should at least make inquiries through their realtor to obtain as much information as possible about maintenance of the road before a purchase.
Finding your dream home or camp is great, but if accessing it proves to be an ongoing headache, it could put a big damper on that rural adventure.
Jan Begert is a freelance writer who lives in a log home on a few acres in midcoast Maine with her wife, son and golden retriever, Finn.
