Property Covenants, Deed Restrictions, and CCRs

Property Covenants - How Deed Restrictions are Enforced

When you are purchasing a house from a homeowner association, some of the initial documents that you will have to sign are the covenants and the bylaws. One may define covenant as an agreement to perform or refrain from any specified action. Typically, the term covenant refers to restrictions on some contracts like a contract to sell property. The conditions, covenants, and restrictions or CCR on a property are also known as deed restrictions. The CCRs are generally found in homes governed by a homeowners association or condo association. A covenant determines how you can and cannot utilize the property. Therefore, it is important to have a clear understanding of the covenants in place before purchasing a piece of property.

There are various types of covenants and the definition of covenant depends on its purpose. A property covenant that restricts is a restrictive covenant. Such property covenants impose a condition preventing the purchaser from using it for a specific purpose. Sometimes there will be a group of restrictive covenants that apply to a specific area or a set of homes. These will be laid down by the HOA or the developer in the master deed or a declaration called the declaration of covenants. If you are purchasing property in a particular area or from a particular developer, you must go through the applicable declaration of covenants and understand what you will and will not be permitted to do once you purchase the property.

A land covenant can also be imposed to preserve certain specific properties of real estate. For example, if a house has some archeological significance, a protective covenant that restricts any future purchaser from altering the look of the house can be put in place. Such a covenant is a protective covenant.

Negative covenants prohibit property owners from performing specific activities. Affirmative covenants require property owners to positively perform a specific activity. Examples of affirmative covenants are requiring purchasers to pay HOA or condominium association dues, or keep the neighborhood clean at all times.

A covenant of seisin implies that a grantor owns the property and has the rightful title to convey. It is also called the covenant of right to convey. Covenants of title provide a warranty that the grantor has complete and secure title over the property and that the title is free from encumbrances.

During the initial conveyance of a property, there will be horizontal privity between the seller and purchaser. Future buyers will not be governed by the covenant and hence there will be no privity. However, some covenants are said to run with the property and all future buyers will be bound by such covenants.

A covenant that imposes racial restrictions is a racial covenant. An example of a racially restrictive covenant is a covenant that prevents selling of a property to any person who belongs to a particular race like the Mongolian race or the African-American race.

There are various organizations that help property purchasers by providing loans. The national covenant properties (NCP) is one such organization that helps churches by providing loans for construction of new churches or addition to churches.

Top Questions about Property Covenants, Deed Restrictions, And CCRs

  • Are restrictive covenants the same as HOA?

    Restrictive covenants are not the same as a homeowners' association (HOA), but they often work together. While restrictive covenants are specific rules related to properties, an HOA manages and enforces these rules. Learning about Property Covenants, Deed Restrictions, and CCRs can help you better understand the role of both in your community.

  • What is an example of a CC&R?

    An example of a CC&R might be a rule prohibiting homeowners from operating a business from their residences. This helps preserve the residential character of the community. Understanding these Property Covenants, Deed Restrictions, and CCRs can help you navigate your responsibilities as a homeowner.

  • What is the difference between a deed restriction and a restrictive covenant?

    A deed restriction is a specific restriction tied to the property's deed, while a restrictive covenant can apply to a group of properties and is typically enforced by a homeowners' association. Both serve to maintain order and property values in a community. When exploring Property Covenants, Deed Restrictions, and CCRs, recognizing these differences is key.

  • What is a standard CC&Rs?

    Standard CC&Rs typically include guidelines about property use, maintenance standards, and architectural controls. These rules are established by the homeowners' association to ensure harmony among residents. Having a clear understanding of Property Covenants, Deed Restrictions, and CCRs can guide you in complying with these community standards.

  • What is an example of HOA CC&Rs?

    An example of HOA CC&Rs would be a rule stating that homeowners must maintain their lawns and landscaping in a specific manner. This ensures that the neighborhood stays attractive and uniformly maintained. Familiarizing yourself with Property Covenants, Deed Restrictions, and CCRs can make a difference when adhering to such rules.

  • How do I find the covenants and restrictions on my property?

    To find the covenants and restrictions on your property, check the title documents you received when you purchased your home. You can also visit your local county assessor's office or their website. This information is crucial in understanding your rights and responsibilities under Property Covenants, Deed Restrictions, and CCRs.

  • What is an example of a restrictive covenant?

    A common example of a restrictive covenant is an agreement that prohibits homeowners from painting their houses certain colors. Such covenants aim to maintain a cohesive appearance in the neighborhood. Understanding Property Covenants, Deed Restrictions, and CCRs can help you recognize what restrictions may apply to your property.

  • What is the most likely reason deed restrictions are placed on real property?

    Deed restrictions are usually placed on real property to maintain certain standards and preserve the character of a neighborhood. By implementing specific rules, developers or homeowners associations protect property values and create a cohesive community. This ensures that all homeowners abide by similar guidelines, fostering a sense of unity. Understanding these reasons helps you appreciate the purpose behind property covenants, deed restrictions, and CCRs.

  • What is the difference between a covenant and a deed restriction?

    A covenant is typically a promise or agreement related to how a property is used, while a deed restriction is a formal limitation placed within the deed itself. Covenants often involve commitments from property owners, whereas deed restrictions are legally binding limitations enforced by law. Knowing the differences between these terms helps property owners navigate their responsibilities and rights better. This clarity is essential in understanding property covenants, deed restrictions, and CCRs.

  • How do I find CC&Rs for my property online?

    To find CC&Rs for your property online, begin by checking with the local homeowners association or community management website. These organizations often provide typed copies of the CC&Rs for their communities. Additionally, county recorder’s offices may have digital repositories where these documents can be accessed. Understanding your property covenants, deed restrictions, and CCRs is vital to ensure adherence and maximize enjoyment of your property.