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Maine Alliance for Road Associations

Legislation to require real estate disclosure stating who maintains private road

  • 15 Mar 2017 1:19 PM
    Message # 4668749
    Anonymous member (Administrator)

    Here is a SECOND bill in the legislature this year (2017) which I thought MARA members should be interested in. In the current statutes, Title 33 MRSA 173 is the law that requires sellers of real estate to disclose certain information to the buyer, including information about the water supply system, insulation, heating system, etc.

    L.D. 871 would ADD to that list a requirement that would apply only if the property is accessed over a “private way” (which is why it should be of interest to Road Associations.) Here is the text of the bill - remember that the first part is not a complete sentence because it is adding to an existing list of things that must be disclosed in a real estate sale:

    LD 871

    An Act To Require Disclosures Relating to the Sale of Residential Real Property Accessible Only by a Private Way

    Be it enacted by the People of the State of Maine as follows:

    Sec. 3. 33 MRSA §173, sub-§6 is enacted to read:

    6. Property accessible by private way. For residential real property accessible only by a private way, the name of the person who owns the private way and the name of the person who is responsible for the maintenance and repair of the private way. If any of the information required to be disclosed under this subsection is unknown to the seller, the seller shall disclose that fact. For the purposes of this subsection, "private way" has the same meaning as in Title 29-A, section 101, subsection 58.

    SUMMARY

    This bill provides that, for residential real property accessible only by a private way, the seller must disclose, if known, the name of the person who owns the private way and the name of the person who is responsible for the maintenance and repair of the private way.

    So, MARA members, what do you think of this bill?  Should it pass?  I will post my comments below.

  • 15 Mar 2017 1:44 PM
    Reply # 4668805 on 4668749
    Anonymous member (Administrator)

    HERE ARE MY THOUGHTS on L.D. 871:

    This bill will help keep people from buying a lot without knowing who will be keeping the road in repair. We have found that people who have lived all their lives on a public road are often unaware of what a road association is, or that they will be expected to share in the cost of keeping the road in repair and clear of snow, in addition to paying their municipal taxes. It certainly seems fair to let people know what to expect in this regard before they make the decision to buy the property.

    This notification will make it easier for road associations, as well. I don’t know how many times I’ve gotten a call or an email saying,”What’s this bill for?” or, “You mean to say the Town doesn’t plow the road? What am I paying taxes for?” Many of the deeds to properties within our Road Association already notify the buyer that by acceptance of the deed they will be required to become a member of the Road Association; however, they are not told what the association does, how to contact the association, or that “membership” means they will be required to pay dues. So when I get one of these calls, I have to explain to the “irate customer” that without members’ dues payments, the road would not remain passable for their use.

    The flip side of this problem is that even with this bill as worded, a seller can sell a lot without notifying the Association that there is a new person who needs to be billed. The result is that properties can slip through the cracks, with some lots not paying their fair share. As acting secretary of a Road Association with 40+ members, I can tell you it's a real headache each year having to check and re-check ownership of lots, trying to figure out which ones have been sold without our knowledge, who should get the bill, and what address to send the bill to.

    I would suggest tightening up the language of the bill to require that if there is a road association, the buyer be given their contact information and a statement of the anticipated road association dues payment if any. I would also suggest the seller be required to give the road association notice of the sale, including contact information of the buyer.


  • 22 Mar 2017 5:21 AM
    Reply # 4682108 on 4668749
    Deleted user

    I think this bill is a wonderful idea but agree that it should also include that if a road association exists that information must be disclosed as well as contact information for the road association. When we bought our property in 1984, our lawyer told us there was an issue with ownership of the road as the development company no longer existed so it appeared to our lawyer that the ownership of the road went to abutting landowners. In regards to notifying the road association of the sale, that would be nice but I still check all properties each year before sending out dues notices. Our city has an online database and since our dues are based on the city's valuation, I always check that amount as the value may have changed because of renovations, new garage/deck etc. Also, I only use the address that the city has on its tax bill as that is what current law requires (I think).

    If I see a for sale sign on a property I will contact the agent and let them know about the road association and if the owner is current or not with dues payment. 

  • 23 Mar 2017 1:45 PM
    Reply # 4685705 on 4668749
    Anonymous member (Administrator)

    Patti - You say, " I only use the address that the city has on its tax bill as that is what current law requires..."  You are correct - that is what is required under 23 MRSA 3101.  But what do you do if the address you use comes back as undeliverable year after year?  Apparently the tax bills are getting through, as the properties have not been taken by the Town for unpaid taxes.  Has anyone else had this problem?  Any suggestions?

  • 24 Mar 2017 5:47 AM
    Reply # 4687223 on 4668749
    Deleted user

    Roberta, I have had a few instances where the address or owner were incorrect. A couple of times the "Address Fixer" on my Dymo Label writer corrected it (for example, the city had AS rather than AZ for Arizona, before I got the Dymo and corrected the address this envelope was returned to me).  I have gone in to speak directly with the city assistant tax assessor about some issues and I have gone to the county Registry of Deeds when I knew a property had been sold but couldn't find it in their on-line data base. When I spoke with the assistant tax assessor she even asked that if I found errors would I please let her know. I have also used Google to search for the mailing address of a new owner and I was able to get it. Hope this helps.

  • 25 Mar 2017 5:05 PM
    Reply # 4690147 on 4668749
    Deleted user

    Some additional thoughts on LD 871:

    Like others who have commented I am in favor of the bill (LD 871) and agree that the scope of the bill should be expanded to include notifying the prospective buyer of the existence of a statutory road association that has jurisdiction for the repair and maintenance of the private way (road). The notification described in the second sentence of the bill is insufficient in cases where a statutory road association exists for the private way (road). Failure to acknowledge the existence of a road association undermines the importance and value of these organizations.

    Using our private way and road association as an example, a notice of ownership of the private way by the seller would be helpful and applicable only for lots along half the length of our road (where the private way is owned by road association ”A”), the remaining length of the private way is owned piecemeal by individuals along the road. Here the seller would be notifying the buyer that they own that portion of the road that abuts their property. However, the new statutory road association “B” has jurisdiction over the entire length of the road and mandates financial obligations, according to the association bylaws, for all properties with a deeded ROW. There is no provision in the bill to notify the prospective buyer of road association “B”.

    The bill would also require notifying the buyer of the name of the person responsible for maintenance and repair of the road. I believe that buyer should be given the name of the applicable road association responsible for maintenance and repair of the road and not just the name of an individual, because the responsible individual (road commissioner) may change.

    Other thoughts:

    I have found it helpful to check ownership and owner contact information at least once a year. I also watch for “for sale” signs. One property on the road had never paid the road association assessment and a lien had been filed with the registry of deeds. When the property was put up for sale a new lien was added to cover the current fiscal year (copies were sent to the owner/seller and the realtor) and with the sale of the property we were able to recover all that was owed.

    The road association has copies of all the property transfers (deeds) for all lots on the road, going back to before the developer purchased the entire property, as well as subdivision plans filed with the registry of deeds and up-to-date tax maps. This information helps the association understand the physical limits of its jurisdiction and helps prevent arguments.    

  • 26 Mar 2017 9:44 AM
    Reply # 4690767 on 4668749
    Anonymous member (Administrator)

    Patti, Richard - Great suggestions.  Thanks!

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