Homeowner’s Associations (HOAs) often get a rough reputation for their strict rules and the sometimes ridiculous leadership that a board can have. However, almost every planned community has one, so working with them and knowing what to expect is a crucial skill.
The HOA will often have something called a CC&R, which can range from simple to complex and strict. Before buying a home or joining a planned community, it is important to understand what CC&Rs are and how the ones in a particular area work.
What is a CC&R?
Forbes discusses covenants, conditions and restrictions, the aspects that make up CC&R codes in the Homeowner’s Association (HOA) of a person’s neighborhood. These exist to tell homeowners what they can or cannot do with their home and property. They are generally easy to follow and sensible, including things like the times you must move your trashcan from the street or the colors you can paint your home.
Some, on the other hand, are not so reasonable. On top of that, the HOA may impose strict and harsh penalties on anyone who does not follow these CC&Rs. Those who do not follow the CC&Rs can face fines, due to willingly entering a contract with the HOA by purchasing the home.
Penalties for violating CC&Rs
Those who do not fix the issues will face increasing fines, and those who do not pay fines will have their access to amenities restricted. In extreme cases, the HOA can take a resident to court. If they win, they could potentially put a lien on the homeowner’s house and foreclose on it.
Thus, it is important to know all CC&Rs before buying a home. Keep an eye out for unrealistic CC&R requirements or bizarre rulings, as well as requirements with vague wording that the HOA could potentially intentionally misinterpret. This can help keep prospective homeowners protected.