How to sell your house: A complete guide for sellers
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You need to understand what covenants, conditions and restrictions are. Here’s what to know.
Covenants, conditions and restrictions (commonly referred to as CCRs) are the written rules and restrictions pertaining to the use of property.
Covenants, conditions and restrictions are normally determined by a developer, homeowners association or condominium board. Once established, they are filed with a county recorder’s office and are legally enforceable.
Most times, a CCR is signed at the time of purchase, and your signature acts as a promise that you will abide by the rules governing the property. Covenants are initially put in place to protect the well-being of a neighborhood and, by extension, the value of the surrounding properties in that neighborhood. Experience has shown that properly drafted and adequately enforced, CCRs help retain property value.
CCRs are primarily used in planned developments, including subdivisions and condominiums. Unless the CCRs were put in place solely by the developer, most covenants are agreed on by a board.
There are two advantages to living under CCRs that have been designed by a board. First, you can go directly to that board for clarification should any questions arise. And, you have the option of running for a position on that board if you dislike the current CCRs.
If you don’t like the CCRs in your area, you can move, but you may come across these issues selling a condo or HOA home.
Because CCRs contain restrictions on the use of your personal property as well as any common areas in your neighborhood association, it is particularly important to read the fine print prior to signing. Here are some examples of common rules outlined in covenants, conditions and restrictions:
Are you looking to buy a home or condo within a particular association? Find out what your new house payment will be?