What you need to know about CC&R's
Written by Amber Lane | Photo by Andrew Richard Hara
CC&R’s = Covenants, Conditions, & Restrictions
A covenant is a rule governing the use of real property. A covenant can also be referred to as an agreement (formalized in a deed) concerning the use of the land, where the Buyer of the land promises to abide by certain restrictions associated with the use of the land.
What’s the motivation behind CC&R’s?
- Homeowners want to retain or increase their property’s value.
- Homeowners want to use and enjoy their property without annoyance, distraction, or offensive use by neighbors that fall short of actually violating any law.
Covenants Vs. Laws
Zoning ordinances are limited in what they can control; they cannot control how a neighbor maintains his property. There is little one can do about a neglected yard, hoarding, abandoned vehicles, or overall poor appearance of a neighboring property. These indiscretions can cost a neighboring property thousands of dollars in appraised value, and can also discourage potential home buyers. The fact of the matter is, properties with enforced CC&R’s retain or increase in value compared to properties with poorly enforced or no CC&R’s at all.
Examples of CC&R’s
Unusual restrictions: Some neighborhoods restrict the color you can paint your house, for example. CC&Rs can place restrictions of almost any kind of nature, as along as the group writing them agree to it and it doesn't violate any laws.
Building restrictions and space limitations: These types of restrictions are more common and describe how close to the property lines a structure may be built. It may also include the minimum and maximum areas a dwelling may occupy.
Prohibition for non-residential uses: This typically restricts commercial or industrial enterprises. There is a fine line between using a home office to conduct business and generating more traffic in your neighborhood due to clients coming to your house.
Pet restrictions: Yes, some CC&Rs prohibit raising animals like chickens or rabbits in your yard. Some do not allow livestock. If some livestock is allowed, the number of animals you may keep on your property could be limited.
Fence height limitations: Although most city codes provide for setbacks and restrictions on fence constructions, you may also find limitations stated in the CC&Rs.
Maintenance of yards: Some CC&Rs limit the types of shrubs and trees used to landscape.
The Bottom Line
While CC&R's do create limitations on what you can and can't do with your property, it also ensures that you don't end up next to a home owner who neglects his yard or hoards vehicles. I have a Client who bought a beautiful piece of property on the mountain side with no CC&R's and built their forever home. A few years later, someone bought the property just below theirs and put up a big shiny quonset hut with about 30+ abandoned vehicles. While they still have a coastline view, they didn't anticipate they would also have a view of a junk yard.
Consider the pro's and con's for yourself and decide what works best for you.