Many homeowners- to-be are curious as to what CC&R’s are and how they affect their Scottsdale Arizona home purchases.
CC&R’s stands for Covenants, Conditions and Restrictions. In very broad terms, the CC&R’s spell out in detail all of the rules and restrictions of the community and how the community will be run.
More specifically, when reviewing the documentation that makes up the CC&R’s you will see things like:
- Definitions – These definitions provide clarity around many of the terms that are used throughout the documentation. You will see terms like “Annual Assessments” or “Improvements.”
- Development Plan – This is the detailed description of the rules of the plans for development. It can spell out things like how long other parcels can be annexed and so on.
- Use Restrictions – This is an important one for homeowners-to-be as it really explains what is acceptable and what is not in terms of home and lot development, decor and so on. Here, things like parking, antennas, RV and boat storage, architectural and design changes and playground equipment are addressed.
- Easements – This is where easements have been granted on certain portions of the community. For instance, utility companies could be granted an easement or a designated common area could be an easement. Other things could be a trail system or an easement for the builder.
- Homeowners’ Association Information – This is another important one as it covers how the community will be managed and governed, how memberships (if available) will be handled, how leadership is elected and so on.
- Assessments and Liens – In this section, the assessments that homeowners pay are covered. It also discusses special assessments and how they can be assigned to the homeowners. An example of a special assessment is if a community needs to do a large project like pave the private roads within the neighborhood and each household will be responsible for a specific monetary assessment. Understanding assessments is important to homeowners as unpaid assessments and fees can become liens placed against your home or property.
- Maintenance – This section goes over lot, landscaping and exterior structure maintenance – i.e. boundary walls, etc., and who is responsible for maintaining them.
- Insurance – This describes the insurance coverage the community has in place.
- General Provisions – In this section, a number of other topics are covered. Things like amendments, liability limitations and so on.
So, what does this mean in the scope of a Scottsdale home purchase? It means that potential homeowners really need to read through and review these documents prior to moving forward with the purchase of the home or lot. What if a boating enthusiasts plan to store their speedboat on the side of their home and that is not permitted in the CC&R’s? They can either plan for offsite storage or move on to another home. Knowing things like this is critical for potential newcomers to a community.
Again, this was a general overview of Scottsdale CC&R’s, but I hope that it helps shed some light on the importance of these documents and how potential buyers need to read through them before proceeding with the purchase of any property.
Disclaimer: This is a basic overview of what CC&R’s are as they refer to the governance of neighborhoods and subdivisions in 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.