Homeowner’s Associations and CC&R’s: Navigating Real Estate Compromises
Homeownership often involves compromises. You may dream of 20 acres off a dirt road, but reality often points to a quarter-acre in a platted subdivision. Compounding matters, the home in the platted subdivision may come with the added complexity of a homeowner’s association (HOA) and the intricate world of Covenants, Conditions, and Restrictions (CC&R’s).
Understanding Homeowner’s Associations
Homeowner’s Associations are typically non-profit corporations mandated by a State or Local Entity. They are entrusted with the governance and enforcement of intricate local land-use rules.
But what’s the catch with homeowner’s associations? On the upside, they uphold the value of governed homes by mandating minimum standards of care. However, the downside is that these standards can be applied harshly, inconsistently, or carelessly by Board volunteers attracted to power for power’s sake.
One critical document that often causes HOA heartburn is the Covenants, Conditions, and Restrictions (CC&R’s). Usually drafted by a developer’s attorney, these CC&R’s frequently represent the viewpoint of the developer alone. They can be poorly written and often come with multiple amendments, complicating the interpretation of individual clauses.
Buyers are already overwhelmed during the real estate transaction. How is a buyer supposed to find the time to read the Covenants, Conditions, and Restrictions they will be required to abide by, let alone understand multiple amendments to the document?
Timely Contract Solutions for Home Buyers and Sellers
The purchase or sale of real estate is complicated, and with so much at stake, it’s better to be safe than sorry!
Timely Contract Solutions:
- For Buyers: Use TC Review to understand the CC&R’s that govern the property you intend to buy. Get answers to your questions. Identify solutions. Be prepared with legal options if adverse or unforeseen land-use requirements are found.
- For Sellers: Use TC Review to understand your legal position and identify choices you have under the signed contract. FSBO’s may need protection from off-the-shelf contracts that don’t fit the circumstances of their sale. Be prepared with legal options if adverse or unforeseen circumstances arise.
Use Timely Contract solutions to avoid common problems of the real estate transaction … and to sleep better at night!
This posting is not legal advice. Legal advice is based on specific facts. This information is necessarily general in nature.