Pennsylvania’s Private Road Act: What It Means for Homeowners and Mortgages
Most people buying or selling a home assume that every property comes with a driveway or legal access to a public road. But in Pennsylvania, that’s not always the case. Some properties are “landlocked,” meaning they don’t have a guaranteed way to reach a public street.
To deal with that problem, Pennsylvania has a very old law called the Private Road Act of 1836. Under this law, if your land is completely cut off from a public road, you can go to the county court and ask for a “private road” to be opened across your neighbor’s land. The court appoints a board to review the request, and if it’s approved, the neighbor must allow the road – but they are entitled to compensation for the loss of property.
Why does this matter for homeowners?
- If you own land without recorded access, you may need to rely on this law just to get to your property.
- If your property borders someone who is landlocked, you could be required to give up part of your land for their access. Even though you would be paid for it, it could still affect your property’s value and use.
- Disputes over road access often turn into expensive, time-consuming court cases.
Why does this matter for mortgages and lenders?
- Banks usually won’t issue a mortgage unless the property has legal access to a road. A property that depends only on the Private Road Act is often considered too risky.
- Title insurance companies also want to see clear, recorded access. If they don’t, they may refuse to insure the property or add exceptions that reduce protection.
- Without reliable access, it can be harder to sell or refinance the property later.
Important 2021 Update:
Pennsylvania’s Act 75 of 2021 tackled a major paperwork obstacle for buyers and renters on private roads. Before the change, lending institutions routinely refused to finance homes on private roads unless there was a formal maintenance agreement in place between all users. Act 75 made that unnecessary.
Now, if there’s no written agreement, homeowners are automatically required by law to share in the upkeep of the road, based on how much they use it. Plus, the law gives property owners the right to sue if someone doesn’t pay their fair share – no HOA needed.
That means fewer finance-related roadblocks at closing. It also gives access to legal recourse if cooperation between neighbors breaks down, while still allowing flexibility when neighbors prefer to draft their own agreement.
Bottom Line: for FHA, VA, USDA, and PHFA loans alike, Act 75 fixed the same roadblock: it gives lenders a legally enforceable fallback maintenance arrangement. That makes homes on private roads much easier to finance and protects buyers from deals falling apart at the last minute.
