Home Buying In Arizona, Title Insurance and Covenants, Conditions And Restrictions.

All people and entities that acquire real estate should also purchase title insurance. Title insurance insures the title to the property. Many things can adversely affect title to land.  Title insurance is a small price to pay to protect against title claims that can affect the value of land or even result in the claimant acquiring title from an owner. These are issues best left undisturbed with preventative measures. One of those items putting a burden on title are HOA rules and regulations in the form of CC&Rs.

Covenants, Conditions & Restrictions ("CC&Rs")

"CC&Rs can be recorded against a property and generally empower an entity such as a home owner's association or a developer to control certain aspects of property's use within the development. 

HOA CC&Rs are also referred to as "HOA bylaws" and a developer's CC&Rs are referred to as "deed restrictions."  By purchasing a home in such a development, the buyer agrees to be bound by the CC&Rs. Thus, the CC&Rs form an enforceable contract between the homeowners and an entity such as an HOA, as well as between the individual homeowners. 

It is essential that the buyer review and agree to these restrictions prior to purchasing a home during the contract prescribed due diligence period.

The ADRE advises: “Read the deed restrictions, also called CC&Rs (covenants, conditions and restrictions). You might find some of the CC&Rs are very strict, especially those addressing landscaping, RV parking, play equipment, satellite antennas, and other common amenities -- particularly if the subdivision is governed by a home-owner's association.”

Check out more about this and other due diligence items to review on the Due Dilligence period page.  Buyers should consult legal counsel if uncertain of the application of particular provisions in the CC&Rs as some can affect your living standard and ability to sell.

This is an article provided in part by HomeSmart Title.