Simple Private Road Maintenance Agreement Template

This Private Road Maintenance Agreement is effective on this [Document.CreatedDate], amongst and by the undersigned [FirstParticipatingOwner.FirstName][FirstParticipatingOwner.LastName]​ and [SecondParticipatingOwner.FirstName][SecondParticipatingOwner.LastName]​.

Recitals

1. (Name of the road)is a privately owned road located in (Area) as shown in Exhibit A presented with this Agreement.

2. All the undersigned owners are the users or owners of this private road.

Agreement

Now, Therefore for valuable and good consideration, the parties of this Agreement accept the following:

Election of a Road Commission Agent

All Participating Owners agree to elect a Road Commission Agent that will serve a period as decided by the owners. This person will be responsible for monitoring the road’s condition throughout the year and initiating any maintenance work when required.

Road Improvements and Road Maintenance

Necessary road improvements and maintenance would be undertaken to manage safe access and movement of vehicles owned by Participating Owners and other emergency vehicles. A majority of the Participating Owners are required to propose road improvement contracts with a value of more than $ (agreed amount).

Before finalizing the expenditures related to road maintenance, all Participating Owners should get informed about the estimated costs by the Road Commission Agent.

If a Participating Owner performs road maintenance without the knowledge of other owners, they shall be solely responsible for all charges incurred.

Cost Sharing Plan

The plan covering all the emergency funds, road maintenance costs, and other related expenses should be shared among all Participating Owners on a pro-rata basis.

Further, the division of all costs among the Participating Owners shall be calculated using the following (formula).

The Road Commission Agent should share an updated cost plan whenever there are amendments in cost allocation.

Payments

All Participating Owners should make payments related to the maintenance and emergency amendments of the private road to the Road Commission Agent.

Further, the Road Commission Agent shall send a notice covering all the payments due to every owner. The Participating Owners shall then pay the due amount within two weeks.

Annual Report, Budget, and Bank Account

The Road Commission Agent is responsible for establishing and maintaining a bank account to hold all the road maintenance funds. Any check issued from this particular account should be signed and approved by one chosen Participant Owner and the Road Commission Agent.

The Road Commission Agent shall prepare and present an annual report to all Participating Owners related to the complete accounting of the funds.

The Road Commission Agent shall also prepare a budget plan on the (date and month) prior to the end of the year. All the Participant Owners can then amend or approve the final plan through voting conducted 30 days before the end of the fiscal year.

Any Emergency Repairs

If the private road requires certain emergency repairs determined by the Road Commission Agent, they shall arrange the resources for the work required. However, the cost shouldn’t exceed the amount already available in the emergency fund account.

The Road Commission Agent shall then communicate the emergency repair requirement to the Participating Owners and would notify them about any amount due to replenish the contingency fund.

Effective Term of the Agreement

The term shall run and encumber the land as long as this road remains private.

Disputes

In case of disputes regarding the maintenance and repair of the road, all the parties may engage in arbitration to resolve it. Then the decision made by the arbitrator shall be binding and must be followed by all the Participating Owners.

An arbitrator must be selected through voting, where each owner should have the right to one vote. All the arbitration-related costs shall be divided among the Participating Owners.

The Invalidity of a Provision

Should an Agreement’s provision be considered invalid, the remaining provision shall not be affected, and every term and condition shall be valid as mentioned by the law.

Other Agreements

This Agreement replaces all old, similar agreements regarding the same private road.

All the Participating Owners and their agents agree not to hold the Town or its employees responsible for any maintenance, repair, and management of this private road. The Agreement shall not impose any liability on the Town in case of maintenance and repair project errors.

The parties have therefore executed this Private Road Maintenance Agreement on the effective date mentioned above.