The acronym “CC&Rs” stands for “covenants, conditions and restrictions” (CC&Rs) The term refers to any legally enforceable document, contract, or agreement that restricts the use and enjoyment of real property. In addition to restricting the uses that can be made of property, CC&Rs may impose obligations on owners.
They may be considered an agreement between property owners, for example, owners of adjacent properties. Or, they may create a form of contract between a property owner and a homeowners association, condominium association or cooperative in which a property is situated.
Covenants, conditions and restrictions are frequently a factor in property ownership because the property is situated in a homeowners association, condominium association or cooperative. They encourage property owners to:
- Maintain or even enhance their property’s value;
- Use their property in ways that do not damage, destroy, injure, annoy, or offend adjacent property and property owners.
Conditions, covenants and restrictions are especially helpful for condominium properties, where the unit of each individual owner is in very close proximity to another’s. The CC&Rs also establish the rights and responsibilities of property owners in relation to their condo or homeowner’s association. For example, the CC&Rs establish the board of directors of the association or cooperative and specify how it should operate.
They may also impose obligations on the associations or cooperatives to perform certain tasks or provide services that are often the responsibility of municipalities, such as snow removal, sidewalk, parking lot and road maintenance and operation of amenities such as swimming pools, gyms and tennis courts. Of course, the association or cooperative is also responsible for funding these tasks at the expense of the owners of the residences.
What Are Some Common Types of CC&Rs?
Covenants, conditions and restrictions may cover a variety of different concerns in connection with the use and alteration of property. Some of the more common topics addressed in CC&Rs include:
- Payment of Fees and Fines: Owners of housing units within an association are always required to pay fees to support management of the community and maintenance of structures, as well as common areas and amenities, if there are any. The CC&Rs specify the penalties for non-payment of fees. The CC&Rs may also specify fines that can be levied if a homeowner fails to comply with the CC&Rs, e.g. by failing to maintain their property in some respect;
- Maintenance, General Appearances and Fences: This is probably the most universal type of restriction on homeowners. Homeowners are generally required to maintain their property so that it appears well-kept and preserves property values. It must be maintained so as to conform to a prescribed architectural standard appearance. For example, the material, location, height and style of fencing may be prescribed. Colors of shutters, trim and siding may be prescribed;
- Views: Property owners may be prohibited from constructing buildings, walls and fences and from planting trees that obstruct the views of neighbors;
- Noise and Pets: Noise and pets can often be the basis of a nuisance lawsuit. Housing associations restrict noise levels and sometimes the types of pets that are allowed on the premises;
- Business and Personal Conduct: Due to local zoning laws, noise level and parking concerns, residents typically cannot conduct home business operations. Also, any personal conduct that is offensive or annoying to other residents of the community is prohibited by CC&Rs.
In addition, property owners may be restricted in what they can do with construction and building projects on their properties, e.g. swimming pools in small townhouse backyards may be prohibited.
What If I Have a Dispute about CC&Rs?
Covenants, conditions, and restrictions are basically contracts between property owners or between a property owner and a homeowner association. Thus, if a person has a dispute over restrictions in the CC&Rs that apply to their property, they would want to start by reviewing the covenant documents.
A homeowner should assume that they are similar to a contract in that a court can be expected to enforce them. If the CC&Rs impose an obligation on a homeowner, the homeowner is probably safe in assuming that they need to respect the obligation.
Of course, CC&Rs impose obligations on associations and cooperatives too and if the board of directors or management is not living up to its obligations with respect to the owners, the owners may have a legitimate complaint against the association or cooperative.
If the owner of a residence in an association or cooperative has not paid the fees and/or fines required by the CCRs, they can expect the association or cooperative to engage in debt collection processes, up to and including filing a lawsuit in a court of law. Associations and cooperatives are subject to all federal and state laws that regulate debt collection practices.
Homeowner associations, condominium associations and cooperatives have boards of directors. They are responsible for managing the association or cooperative or for hiring professional management to do it. Generally, in the case of most disputes, an owner would want to start with the board of directors and try to work with the board to resolve any disputes.
Many states have enacted laws that govern homeowner associations, condominium associations and cooperatives. These state laws may require a board of directors to give the owners in a community notice of its meetings, conduct its business openly at its meetings and maintain minutes of its activities.
For example, in Maryland, the Maryland Homeowners Association Act governs the creation of homeowners associations in the state. The Act defines the authority that HOAs have and regulates how they can operate and how they can be managed.
In the state of New York, a number of laws may be relevant to a dispute. The first is the New York Condominium Act. As in Maryland, this law regulates the creation, authority, operation, and management of condominium associations. Most of the condominiums in the state of New York are unincorporated associations created pursuant to the New York Condominium Act.
Most of the homeowner associations in the state of New York are formed as non-profit corporations, so they are subject to the New York Not-For-Profit Corporation Law. The New York Business Corporation Law, which regulates the creation and operation of corporations in the state, would also apply to homeowner associations.
Cooperative associations also comply with New York’s Business Corporation Law. Finally, the New York Cooperative Corporations Law regulates cooperative corporations that are formed under that statute. The cooperative corporations are also required to comply with some provisions of the Business Corporation Law.
So, as can be seen from these examples, a variety of state laws may apply to a homeowner or condominium association or cooperative and their activities. In addition, there may be local agencies or entities established by a city or county government that can be involved in a dispute between a property owner and a board of directors of an association or cooperative or between owners of units
A city or county may have a dispute resolution process and a local agency, office or commission to which a homeowner can appeal. In some cases, a homeowner may be required by a local ordinance or code to complain to a local agency, office or commission regarding a dispute. This may even be a required first step in resolving a dispute.
If a person feels that any of the contract provisions violate their rights as a homeowner or resident, they may wish to contact a lawyer for advice. Or, an owner may feel that their governing association or cooperative is not dealing fairly with owners. The governing board may be discriminating against owners on the basis of their membership in a protected class. In this case, both state and even federal laws prohibiting discrimination in housing might apply.
Or, an owner may recognize that their community is failing to make its common areas and amenities accessible to owners and guests with disabilities. And in this case, again, state or federal law may be involved.
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Should I Contact a Lawyer for CC&R Issues?
CC&Rs often dictate what a property owner can or cannot do with their property in the community. Some disputes may well be the kind of thing that a homeowner could handle on their own. But a variety of local, state and even federal laws could be involved as well, and an owner may need to consult an experienced real estate lawyer for expert guidance as to how to proceed.
Or, there may be special local procedures that need to be followed before a person can file a lawsuit in court.
If you have any questions or complaints about a covenant, condition, or restriction on your property, or, if you have a dispute with your association or cooperative, you should contact an experienced real estate lawyer for advice. Your attorney can help determine the legality of any agreements formed between you and other parties, e.g. your association or cooperative. Your attorney can advise you about the best way to proceed to resolve a problem or dispute that involved CC&Rs.
