The acronym above stands for Covenants, Conditions, and Restrictions and usually refers to the restrictions that control residential subdivisions where there is a set of rules that binds each owner to act or build in a certain way. People buying properties agree to those conditions because of the assurance that the neighborhood will remain consistent in value and appearance well into the future, protecting their investment and offering a constant quality of living. Typical covenants may restrict activities such as motorcycle riding, the number and type of livestock or pets, or disallow Airbnb rentals, the number of outbuildings, and what can or cannot be stored on the property. They can even dictate the size, design, and color of your house.
We hear complaints over the years concerning these types of restrictions. Owners sometimes were unaware at the time of purchase of the CC&Rs attached to their property and do not like that someone else can dictate what they can or cannot do on their own property. There are contingencies that can be added to a purchase contract to allow prospective buyers to review and approve any CC&Rs and, if there is one, a governing homeowners association.
Some people intentionally seek out areas to live where there are CC&Rs because they see them as offering safety and protection, while many see the same rules as an infringement on their rights. Golf course or lake communities are great examples of places where covenants dictate uniformity in structures and behavior. Most new subdivisions will have CC&Rs.
CC&Rs are recorded with the county and include the properties that are bound by them. CC&Rs are not enforced by the city, county, or law enforcement. The property owners who are also bound by the same CC&Rs are the ones who can enforce them and will most likely have to involve an attorney.
A recent experience shows how the CC&Rs worked in the property owners’ favor. In a small rural subdivision, a neighbor started moving old cars, campers, and trash onto a five-acre parcel. The CC&Rs were clear that this was not allowed, and the neighbors were able to have an attorney draft a letter to the offender encouraging them to abide by the CC&Rs or legal action would be taken. The offending party quickly removed the items. The neighboring parcels were able to preserve the aesthetics of the subdivision and protect their property values.
CC&Rs are not for everyone. If you do not want to have these types of restrictions on your property, be sure to carefully identify whether a property is bound by them before purchasing.