A Brief Guide to Shared Driveway Agreements
A shared driveway agreement is written contract between two or more property owners that describes the use and maintenance of a driveway jointly used by the properties. Agreeing to a shared driveway is common when two properties are in close proximity to each other, such as with multiple family homes, townhouse communities, apartments neighborhoods, and housing estates. Such agreements provide clearer understanding of how the driveway will be maintained and used. Establishing rules and responsibilities around use of a shared driveway helps to avoid potential conflicts between property owners . Some of the areas that should be discussed between owners include how snow and ice will be removed, maintenance schedules, cost sharing and liability issues. They are often recorded with the Land Registry Offices so that they are binding on subsequent owners of the properties in question. Common disputes involve the integrity of the structure, use of the area by drivers, pedestrians and by people using the home including children playing and others visiting or working in the home.
What Should Be Included in a Shared Driveway Agreement?
The most important aspect to focus on when drafting a shared driveway agreement is to ensure that it is as specific as possible about everyone’s rights and obligations in regard to the driveway. The following elements are typically found in a shared driveway agreement: • Specific description of the shared area, including an accurate sketch or diagram of the driveways, common passageways, parking spaces, etc. (if the properties have several driveways or passageways) • Clearly stated rights of each party to access the drive and use the passageways • Stipulation that no permanent obstructions may be placed in the shared areas • Set expectations for operation, maintenance, and repair of the driveway and passageways, including snow and ice removal, and other maintenance services • Establishment of a fund for expenses related to the driveway, including maintenance and periodic repairs • Agreement on how costs will be allocated – for example, dividing the funds by percentage of property value • Specifics on liability and insurance coverage • A requirement to notify the other party of issues that affect the driveway and passageways, including notices regarding planned construction, parties who will use the shared areas, and/or assessment for any damage to the shared areas • Agreement on acceptable uses of the driveway and passageways • Restrictions on permanent constructions, such as hedges or fences • Plan for dispute resolution if issues arise, including setting up a procedure for site visits, joint inspections, mediation, etc.
How to Prepare an All-Encompassing Agreement Template
When creating a shared driveway agreement template, it’s important to keep in mind that an agreement of this nature must be comprehensive, all-inclusive, and enforceable. If you don’t include all the necessary elements, future disputes between owners or residents could arise. Furthermore, courts could find the agreement to be not enforceable if all elements are not present.
The following guide breaks down the process of drafting a complete agreement template:
- Title the Document. Your agreement template needs a title. The words "shared driveway agreement" should be prominent on your document.
- Identify the Parties Involved. The agreement should start by naming the parties. The names of the individuals or entities (e.g., homeowners association) involved in the agreement should be clearly listed so that it’s easy to identify who is included in the contract.
- Describe the Property. The real property should be precisely described in order to avoid confusion. This should include legal descriptions, such as block and lot numbers.
- State the Purpose. Explain the reason for the contract. This is where you would state the need for the shared driveway and grant permission for both parties to utilize the other’s driveway as needed.
- Identify Rights and Obligations. Each party should have rights and obligations established by the agreement. For example, parties should be held responsible for maintaining the driveway to their respective properties.
- Describe the Procedures. Procedures should be in place that detail how each party will access the shared driveway, what maintenance obligations exist, and who will be responsible for snow or debris removal.
- Include Miscellaneous Provisions. Other considerations can be included as necessary. For instance, how disputes will be resolved should be addressed. For instance, how will you resolve a dispute if one of the parties is parking on the other’s side of the driveway?
- Get Signatures and Notarize. Once the agreement is finalized, it should be signed by all parties and notarized.
- Register it (Optional). Some parties may find it necessary to have the document recorded at the county that holds the property records. This may be useful if the driveway is to be a permanent fixture of the property.
Legal Factors and Different State Statutes
Regardless of the state or local jurisdiction, property owners should ensure that their shared driveway agreements cover all bases. As such, they might want to consider several legal considerations:
1. Recording: Because a shared driveway agreement is a legal document that directly affects the use, access, and potential value of a property, it should be recorded with the county or city recorder’s office. Most local offices provide specific forms for filing written agreements.
2 . Zoning: Zoning regulations might affect driveway access to a property. Property owners are advised to check with their local zoning offices. For instance, some jurisdictions prohibit residential properties from having a common driveway connecting to a nonresidential property.
3. States’ Real Estate Laws: Shared driveways are governed by each states’ real estate laws. Property owners should make sure that any agreement complies with those laws.
Property owners with questions or concerns are encouraged to seek legal counsel.
Advantages of a Properly Drafted Agreement
A well-structured shared driveway agreement can truly work wonders in preventing disputes, maintaining amicable neighbor relations, and upholding the value of all involved properties. From a practical standpoint, such an agreement provides a clear and legally binding reference that both parties can turn to and consult in the event of any future disputes or questions about the use of the common area. This eliminates any guesswork, which is the single most significant contributor to neighbor disputes. In addition, even though most neighbors would never think of taking a legal route, should similar disputes arise with a rogue neighbor, there will be a valid written response for the other party to point to.
From a neighborly perspective, the most significant advantage is the preservation of good relations. As previously mentioned, most disagreements with neighbors are explicable with just a bit of context. Most commonly, these disagreements arise based on differing perspectives on what constitutes reasonable or appropriate use of a shared common area. This is particularly true for shared driveway entrances where there may be a wide range of opportunities to travel across the area, each with its advantages and disadvantages for residents.
If both parties have a clear and legally enforceable policy that outlines how various situations should be handled, then most conflicts can be avoided. With a clear guide to follow, parties can avoid acting independently in a way that the other perceives as inconsiderate or inappropriate.
At the financial level, both properties can be preserved. Under the right circumstances, it is possible to negotiate access or parking rights and easements that favor one party over another. This can make one property significantly more valuable than the other. These added values are explained in greater detail below, but this also shows the need to have a shared-use drive agreement. Without one, a party with greater power in the situation could constrict the rights of the other simply based on leverage, creating liabilities for the underpowered party while giving them no recourse.
A shared driveway agreement also provides some insurance against future market changes. For instance, if the property values in the area were to drop substantially in the next few decades, leaving the properties worth less than their mortgages, one negotiating party would have the right to prevent the other from building a garage or any other such thing that would raise the original valuation, and by extension, their mortgage. A shared agreement would ensure an agreement that provides some assurance. Alternatively, if properties were to increase in value and one property was to have a garage or carport, the non-garage property would have an increased valuation but might be subject to limitations due to lack of access. A shared driveway agreement would require equal rights to both properties to add such structures.
Including a Template Builder or Legal Service
An increasingly popular way to get a shared driveway agreement is to use an online template builder. These services allow you to answer questions about your property and driveway, and then produces a legal document based on your answers. There are many template builders to choose from, some free, others for a fee. A template builder can be a great option if the work has already been done to determine what the agreement should say. For example, if the parties have already agreed to how use will be regulated (e.g. driving on the left side of the driveway), a template builder can quickly generate a generic form.
One drawback of a template builder is that you may need to answer multiple questions that feel repetitive or one-sided. The process is not the same as having a constructive conversation with another party. Often using a template builder will save you money, but it can still be costly. Even when the fees are low , the form may not be satisfactory when finished. This is a common problem with cheaper or free online agreements. You only get what you pay for. Another disadvantage is that the document may not be completed as carefully as an agreement drafted by a professional. Thinking through language with a lawyer can help you find legal issues that may not have immediate importance, but can cause problems down the road.
In addition to template builders, online contract and forms/"doc as service" platforms now offer legal services. You can pay a monthly or annually subscription fee for peace of mind that you can have your document reviewed or your questions answered. These services are often performed by non-attorney staff and are likely to be of variable quality. This type of service may be less substantive than an attorney engagement, but will supply a faster response time and less transactional friction than a law firm retained for a single matter.