The term Covenants, Conditions and Restrictions sounds arcane and overly legal, but it’s easier to understand once you break it down. Think of it this way: Covenants are promises the association makes to you as an owner, Conditions are what you need to do to receive those benefits (mainly, pay your monthly assessments), and Restrictions are the limitations on how you can use your property.
What Are Governing Documents?
When you buy a property in a homeowner association, you’ll receive the community’s governing documents, which include the CC&Rs. These documents are the legal framework used to manage the association. Beyond the CC&Rs, governing docs typically include:
- Articles of Incorporation: establish the HOA as a legal entity
- By-laws: guide the administrative rules
- Rules and Regulations: adopted and enforced by the board
Why CC&Rs Matter
CC&Rs outline the obligations and restrictions for every owner in the community. Once you review these documents and purchase the property, you’re automatically subject to their terms. They “run with the land.”
That means you can’t decide to pay less than your full share of dues just because you don’t use the pool. The association’s obligation to operate and maintain that pool is also your obligation.
It’s also not easy to change the CC&Rs. Unless a supermajority of all owners (not just those voting), 67% or more, agree to changes, the restrictions stay in place.
The 4 Main Areas CC&Rs Cover
Once the CC&Rs define the community’s common areas, they typically address four key topics:
1. Property Use
Limitations on home businesses, short-term rentals, street parking, and garage use. This is critical to understand before closing escrow. If you plan to park on the street and use your garage for storage, but the CC&Rs prohibit both, this community may not be the right fit.
2. Aesthetics
Guidelines for exterior paint colors, fence heights, landscaping, and additions like sheds or pools. You might love chartreuse, but the association has consistency standards for a reason. Well-run associations with strong aesthetic guidelines and amenities like tennis courts, pools, and greenbelts tend to have higher property values than non-HOA communities.
3. Nuisance Rules
Restrictions on noise levels, trash can placement, and pet breeds or quantities. State law supersedes CC&Rs when it comes to prohibiting pets entirely, but associations can limit the number (typically no more than two) and size (typically no more than 50 pounds). If you like to raise great Danes, you may want to pass on an HOA.
4. Financial Obligations
Your legal duty to pay monthly or annual dues and the association’s power to enforce that. If you don’t pay, the board has the legal right to assess late fees, place a lien on your property, and in extreme cases, foreclose. The financial consequences of ignoring this obligation can be significant.
The Bottom Line
CC&Rs can run hundreds of pages and aren’t always easy to read, but taking the time to understand them before you buy is worth it. Knowing your obligations and restrictions upfront is the best way to make sure a community is actually a good fit for your lifestyle. Have more questions? Check out our FAQs.
