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Frequently asked questions about Condominium Associations' CC & R's

By
Real Estate Agent with Berkshire Hathaway HomeServices California Properties 01238708

Frequent questions about Condominium Associations (CC& R’s)

 

First and foremost, what is a CC& R? The definition is:  Covenants, Conditions and Restrictions. These bylaws   limit the usage and add limitation on a real property being sold, by the homeowner’s association. These laws basically dictate how the Association Operates and what Rule the owners, tenants and guest must follow.

 

How are the CC & R’s enforced? This is very different from state to state. Here in California the Law allows that either the association or an owner in common interest development may file a lawsuit and ask the court to enforce the CC & R’s rules. If you are member of a California Condominium Board, I would strongly encourage you to get an Attorney or Law Firm that specializes in Condominium Litigation. The law is very specific what thresholds need to be met for both the association and the members. Hence if you are contemplating on enforcing or defending yourself it is critical that you follow the rules or you will be very disappointed.

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Do I need an attorney to explain the CC & R’s to me? Even though most of the CC & R’s are boiler plate forms. It is always wise to seek the advice of legal counsel for any questions regarding the governing documents or rules of the association. I am confident $500 or so is well worth spending on a property that you might buy for $500k-$1million or more. I would if I had questions and there is not enough money to provide peace of mind.

 

If you are a consumer who is considering buying or selling a home, investment real estate, vacation homes, or beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Culver City, Playa Vista, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 or email me at homes@endrebarath.com or visit one of my websites at  http://www.endrebarath.com  Your Pet Friendly Realtor. I contribute a portion of my commission to Local Animal Rescue Organizations

Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hi Endre ---a good post to read for those considering or living in a HOA.  Reading and reviewing the  meeting minutes can give some extra insight into the Homeowner Association, the membership and the manner that issues are addressed.

Aug 04, 2012 05:07 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Michael, thank you about your observation, unfortunately for some reason the picture and the format is not how I wrote it:)) so hopefully I can fix it soon:)) the message is good though!

Aug 04, 2012 05:09 PM
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

Endre, it's good to refer buyers to an attorney who may be concerned about what's in the CC&R's. I know addendums can be added from time to time changing the rules. Great post, have a great week,

Aug 04, 2012 06:00 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Pamela, I am a firm believer if the buyer has a question about something that I do not have the answer I prefer to have them talk to the expert. I often defer clients with Title Questions to the Title Officer to get the "right" answer!

Aug 05, 2012 04:21 AM
Ron Marshall
Marshall Enterprises - Saint Michael, MN
Birdhouse Builder Extraordinaire

Endre, I know that condominium associations can be both good and a pain in the neck.  Mostly, though, I think they help.  Thanks for the information.  Have a great week!

Aug 05, 2012 05:32 AM
Rene Fabre
ARFCO Media - Renton, WA
Practicing Philosophical Eclectic of the Arts

Endre: Totally agree with the legal councel point, and here we encourage brokers, sellers, and buyers to read the CCRs and if they have questions, ask the title officer! Don't wait until a problem happens, be proactive! I live in a condo myself. It never ceases to amaze me how owners sometime view the CCRs like its simply a rental agreement thats unenforceable and they are an exception. Good advice... 

Aug 05, 2012 07:15 AM
Nick T Pappas
Assoc. Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, Broker/Providence Property Mgmnt, LLC Huntsville AL - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

Endre, HOA's are a hot topic in my area.  The problems can multiply depending on whether or not the association is controlled by the residents or the developer...we have a local HOA advocate who has been very helpful getting questions answered and helping to protect would-be home owners.

Aug 05, 2012 07:53 AM
Joni Bailey
101 Main St. Realty - Huntsville, TX
Your Huntsville / Lake Livingston Area REALTOR®

As we do not have any condominiums in Huntsville, Riverside,  or Trinity, I had no idea what a CC&R was. But it makes sense now that I do!! Now I will be ready for when they do decide to build some! :)))) Thanks!

Aug 05, 2012 07:59 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Ron, Home Owner Associations do serve a purpose, unfortunately most people do not read the CC&R's and they discover certain point that they did not like when it is too late. My advice is if you do not read the whole 150 plus pages than at least read the table of contents and pick out the areas of interest and concern and at least read that

Rene' thank you for adding to the conversation. I had probably only two buyers over the many years who actually read the CC&R's one ended up getting credit back because what he discovered.....

Nick how true, once the Developer looses Control it gets interesting, I prefer a Management Company over some Rogue Home Owner Associations!

Joni, I keep forgetting what a community you live in, it is almost hard to fathom no Condominiums, for us this is the normal way of life, no front or back yard, just building after building, hence when we get Resort Style Condominiums we get truly excited:))

Aug 05, 2012 08:43 AM
Laura Allen, Lake Tahoe - Truckee Real Estate for Sale TahoeLauraRealEstate.com
Coldwell Banker Realty, Tahoe City, CA (530) 414-1260 - Tahoe City, CA
Tahoe Real Estate Agent Helping Buyers and Sellers

Endre - Excellent information on the legal side of living in a condo.  If you're thinking about buying a condo you need to understand what you are agreeing to and the consequences of that agreement.  Great post!

Aug 05, 2012 10:43 AM
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living
Endre, thanks for sharing this important information. It definitely would benefit a buyer to review all condo documentation before finalizing the contract or within the time period allowed thereafter.
Aug 05, 2012 11:31 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Laura, thank you, I am still waiting to connect with AR to solve my issues with the format of this post:)

Silvia, You are right it has to be done prior to the closing, after that it is too late!

Aug 05, 2012 02:52 PM
Roy Kelley
Retired - Gaithersburg, MD

Good information for prospective condo purchasers.

Have a very special week with your camera in hand.

Aug 05, 2012 08:58 PM
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

Many buyers are not aware of the restrictions assoicated with a Condo or HOA. Better to be informed before making a decision to buy. Condo living may not be right for everyone...

Aug 05, 2012 10:26 PM
Eileen Hsu
Douglas Elliman Real Estate - Manhattan, NY
LICENSED REAL ESTATE SALESPERSON

Understanding the CCandR's of a community is a must do part of your due diligence as sometimes you will find something that will directly impact how you plan on using the property you are thinking of purchasing.

Aug 06, 2012 12:32 AM
Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional
Charles Rutenberg Realty - Clearwater, FL
Palm Harbor, Dunedin, Clearwater, Safety Harbor

Indeed, you can never have too much information on condos.

On another note, I don't know James Dunham but find it really cool that you are from U-Conn. Did you grow up in the area or just go there for college? I love that area. My mom always referred to it as God's Country.

Aug 06, 2012 06:58 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Roy now that AR fixed my post I am thrilled to be out with the camera again:))

Sheila & Larry you are so right and the beauty is in Los Angeles you could have either one unlike in New York you would have to move to the suburbs!

Eileen since most of your sales are Condominiums in Manhattan I knew you would agree with this post!

Aug 06, 2012 09:49 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Barbara Jo I lived in Bridgeport, then Waterbury....went to three different schools and finally graduated at Storrs:))

Aug 06, 2012 09:50 AM
Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

Endre-Getting an expert to explain unclear provisions or getting a legal beagle to unravel complex language so you don't get into a bad situation is money well spent.

Aug 13, 2012 09:42 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Wayne I agree ignoring it will not make it go away, a few hundred is probably well spent!

Aug 14, 2012 04:40 AM