What are CC&R’s and How Do They Affect My Land?

Posted by admin on October 4, 2012

When you are buying property in a new subdivision, common interest development, planned unit development or co-op, your developer will likely have control over how each of the properties within the development are used. This control is established through covenants, conditions and restrictions (CC&Rs), which are limitations on your property ownership rights.

Some examples of CC&Rs are as follows:

-          Houses may only be painted a specified color

-          No dogs over a certain weight

-          Lots must be free of debris and unsightly material

-          No building of fences, walls or permanent structures

-          No parking on the streets

Neighborhoods that enforce CC&Rs retain their property values much better than neighborhoods with either no standards or covenants that are only loosely enforced. Neighborhoods that enforce standards typically are better cared for, safer, maintain better relationships with local governments and retain or increase investments made on properties.

If any of the CC&Rs, which are included in your title, are violated, penalties may involve fines, forced compliance or a lawsuit by the association. Your neighbors may also be agitated as they are all in compliance with the rules and may feel disrespected by your lack of compliance as a member of the neighborhood.

Before buying property, make sure that you read over and understand the effects the CC&Rs have on your property ownership. CC&Rs typically aren’t presented until the day of closing when you have already fallen in love with a property and are ready to call it home, a strategic move used by the title companies. Be careful not to simply brush the CC&Rs off and continue in the process of buying property until you fully understand your obligations. You are subject to the CC&Rs whether you have reviewed them or not.

Living in a neighborhood community based on conformity is a great option for some people, but it’s not for everyone. If you don’t want to be governed strictly by an association and want to do as you please with your property, consider buying a piece of land and building your own home. Head over to AllAcres.com to browse our listings of available property and discover the ideal land for a future residential project. Call AllAcres at (855) 227-3741 or contact us online. We would be more than happy to answer any questions or concerns about buying property for development.