Over the past 50 years we are seeing more properties that are part of an association which have a governing document called Covenants, Conditions and Restrictions  (CC&Rs). CC&Rs are rules and limitations that govern a community whether they are in a multi-family building or freestanding home. Typically they are established by the developer,  or association (aka HOA) to  protect, preserve and/or enhance property values within the community.   They might for example, prohibit owners from parking their recreational vehicles on the  street or failing to maintain their yard.

CC&Rs are an official  governing document and every homeowner agrees to these  terms (whether they realize it or not) when buying in to the community.  Even so, it remains a widely misunderstood topic.  In light of this,  we’ve put together a list of 8 facts to consider:

1) When CC&Rs are filed with the county recorder, they become legal documents, meaning anyone can see a copy.

2)  It does not matter whether you read or understand it, once it is  recorded, a CC&R becomes a contract that binds all owners. The law  only guarantees that it is available to you – it’s your responsibility  to read and understand it.

3) CC&Rs are often distributed in  unrecorded or “draft” format. The official CC&Rs will have a  recording number from the county recorder on each page. Make sure you  have read and understand the final recorded document.

4) CC&Rs trump local laws. For example the local town could allow fences that are up to 8 ft. tall. But if your CC&Rs only allow 5 ft fences then you have to abide by that.

5) It  does not matter how “unreasonable” an owner finds the CC&Rs.  They will be presumed enforceable by a court unless they are in direct  contradiction with the law.

6) Once the CC&Rs are file with the local government they are difficult to change. In some cases they can be change by a majority approval of the board, in other cases the homeowners must vote on the changes. The CC&Rs usually describe the process to amend or modify the language. Such amendments are approved in an open meeting and must to be  recorded.

7) Read the CC&Rs before you put an offer on a house in an association. Most home buyers will gloss over the CC&Rs. This is a big mistake as there may be restrictions that they are not aware of. A good example is whether a camper or boat be parked in the driveway. Some association do not allow it. If a new homebuyer is unsure of the CC&Rs , then they should sit down with there realtor and review it together.

8)  Modern CC&Rs either have no expiration date or automatically renew.  In older associations the developer attorneys would draft CC&Rs with expiration  dates. Do not let your CC&Rs expire if they still have a set date –  renew the document and then amend any expiration date out.