What are CC&R’s and How Do They Affect My Scottsdale Area Home Purchase?
– What Do CC&R’s Stand For? –
If you are looking to buy property in Scottsdale, Arizona or in the surrounding areas, you will most likely hear the term CC&R’s. But what does that stand for and how do they impact your potential purchase?
CC&R’s stands for Covenants, Conditions and Restrictions. CC&R’s, in general, provide specific details about the restrictions and rules of that particular community and also how the community is to be run.
When you are in the process of buying a home or lot, you will be provided a copy of the CC&R’s that govern the community in which the property resides. They can be lengthy as they include information on a large number of topics, some of which are detailed below:
- Definitions – You will find a list of definitions for many of the words and terms used in the documentation. For example, you will find specific detail on terms like “Annual Assessments” or “Improvements.”
- Development Plan – This shows the projected plan for future development. You may see information about how long other parcels can be annexed and so on.
- Use Restrictions – This is one every potential homeowner-to-be should review carefully. This section spells out the rules and requirements regarding home and lot development, external decor and so on. Key things like RV and boat storage, parking, architectural and design changes and playground equipment are also covered.
- Easements – An easement permits an entity to use someone else’s land for another purpose. So in this section, you will see where and what easements have been granted on certain portions of the community’s land. One example would be a utility company having an easement. Another could be a designated common area. Some other examples of easements could be a trail system or an easement for the builder.
- Homeowners’ Association (HOA) Information – Like the Use Restrictions section, the HOA section is another one potential homeowners will want to examine closely. This section outlines how the community will be managed and governed. It will cover how memberships (if available) will be handled, how the HOA leadership is elected and so on.
- Assessments and Liens – An assessment is where each household in the community is required to pay a certain monetary amount to fund a specific project. So in this section, any assessments that homeowners are paying or will be required to pay are covered. It will also explain what ‘special assessments’ are and how they can be assigned to the homeowners when they arise. An example of a special assessment would be the repaving of the private roads within the community. Understanding assessments is important because if they remain unpaid, the unpaid amount can become a lien placed against your home or property.
- Maintenance – This section covers the maintenance of the community. This includes things like landscaping and exterior structure maintenance, boundary walls, and so on. It also defines who is responsible for maintaining these items, i.e. the property owner or the community.
- Insurance – This covers they type and scope of insurance coverage the community has secured.
- General Provisions – In this section, a number of other general topics are covered. You will see things like amendments, liability limitations and more.
How Does This Apply To My Scottsdale Area Home/Lot Purchase?
Quite simply, it means that you will need to read through and thoroughly review all of these documents prior to moving forward with the purchase of the home or lot. It is important to make sure that you are comfortable with the restrictions, terms and rules to make sure they align with your lifestyle.
For instance, what if you own a boat and had planned to store it on the side of your home, but when reading through the CC&R’s you realize that it is not permitted? Knowing that in advance means you can make alternate storage plans or look for another home where you can store your boat on property.
I hope that this general overview of Scottsdale CC&R’s has helped shed some light on how important these documents are. Potential buyers really need to read through them before proceeding with the purchase of any property so that there are not any surprises down the road.
Disclaimer: This is a general description of what CC&R’s are as they refer to the governance of neighborhoods and subdivisions in and around Scottsdale, Arizona. It is not meant to be a definitive guide and information can change at any time. For more detailed information and specifics, please contact the Homeowners’ Association or municipality that governs the property or home directly.