Does someone know: What does CC&R stand for? It's listed on the general form under zoning. I have no idea, and I asked my mentor and she doesn't know either! I need to check a box: "Are CC&Rs applicable? yes, no, unknown."
Thanks a lot,
Deanna
Ms. Mulaly,
Ok, now we know that "CC&R's" means "Conditions, Covenents, and Restrictions. What we are misinformed about is these are created by home owner associations and what exactly they are. Your post also shows the really bad aspect of entry into the appraisal trade the last decade. Too many people getting in with no real estate background of any kind, and then training others when they themselves are undereducated. No mentor can know everything, but most mentors should know most things.
CC&R's are "Deed Restrictions" that run with the land. The are legally enforceable regardless of many in real estate trying to claim they are not, unless the condition or restriction violates fair housing laws. Generally, CC&R's are most often created by general contractors for a subdivision in order to maintain quality and appeal through and during the sell out period. H.O.A. do not create CC&R's, they are typically charged with the enforcement of them. It is the home owners that vote to create changes after general contractors create them. Most CC&R's automatically renew themselves every so many years.
It is possible a seller of one property could legally create CC&R's for that property. If a buyer agrees to them as part of the sale, they are legal and enforceable. It is possible that a subdivision, through lack of enforcement of CC&R's, can reach a point where the CC&R's could become unenforceable. It is possible to have CC&R's with no H.O.A. at all, these would have to be enforced by owners in the subdivision through a personal law suit against a property owner violating them.
One of the many things typically found in CC&R's is requirements regarding the exterior construction quality of the homes. Things like roofing type, siding type, allowed colors, RV parking, fencing types and heights, refuse, animals, and other factors that can affect value in an area if left to the willy nillies of careless people.
Many "Seller Disclosure Statements" (Have you read the ones real estate brokers use in your area? If not you should.) have such questions on them for sellers as "Does your subdivision or property have CC&R requirements?", and "Is there anything regarding your property that violates those CC&R's?" The reason for this is the new buyer could be purchasing a coming law suit against them for an act of the seller.
If you think this over. You will understand why on every inspection you should be asking if there are CC&R's recorded for the subject and have a disclaimer in your reports regarding CC&R violations. Have a buyer later prove a CC&R violation affected value, you failed to consider it and never bothered to even note there were CC&R's...... well, I bet we can see where this one is going....
What does it cost to reroof a 3,000 square foot house that had roofing in violation of the CC&R's?
Webbed.
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