If you are looking to purchase a home, it is important to understand the details of the property you are interested in. One aspect that some buyers may overlook is the Private Road Maintenance Agreement (PRMA). This is a contract between the homeowners who live on a shared private road that outlines the responsibilities and costs of maintaining that road.

In many cases, the PRMA is a requirement for obtaining a mortgage, particularly for homes bought through Freddie Mac, one of the largest providers of mortgage financing in the United States. Freddie Mac has very specific guidelines when it comes to PRMAs.

One point that Freddie Mac stresses is that the PRMA must be recorded with the county in which the property is located. This ensures that the agreement is legally valid and can be enforced if necessary. The PRMA should also include a list of property owners who are party to the agreement, as well as their respective obligations and responsibilities for maintaining the road.

Some of the responsibilities that may be outlined in a PRMA include snow removal, pothole repair, and regular maintenance such as grading and repaving. Costs for these services may be split evenly among all property owners on the private road, or may be divided based on the length of each owner`s property along the road.

It is important to review the PRMA carefully before purchasing a home on a shared private road, as it can have a significant impact on ongoing expenses. You may also want to consider consulting with an attorney to ensure that the agreement is legally sound and that you fully understand your obligations.

In summary, the Private Road Maintenance Agreement is an important consideration for anyone looking to buy a home, particularly if the property is on a shared private road. Understanding the terms of the agreement, including responsibilities and costs, is crucial for making an informed decision. With the guidelines set forth by Freddie Mac, you can be confident that the PRMA is legally valid and enforceable.