Fairways at Scenic Hills

CC&R's

Covenants, Conditions and Restrictions (or DCCR's - what are they?)

Whether during the construction of your new home or just prior to closing, you should have received a copy of your association's CC&R's, which stands for Covenants, Conditions, and Restrictions. CC&R's are filed with the real property records of the county in which the association is located and operates and are the rules and regulations that govern the association. The CC&R's are often referred to as the deed restrictions, declarations, or master deed for the community. While this may sound menacing, they are simply the rules by which the property owners are to conduct themselves as well as guidelines to assist the board of directors in managing the association. While most home buyers give little attention to these documents before closing, these are almost as critical as the loan documents because they are a legal contract binding the owner and the owner's prescribed land use as a member of the association.

CC&R's
The CC&R's contain specific information for the homeowner regarding required dues and fees, obligation of the association for maintenance of the common area, the use of community facilities and services, as well as restrictions on future property development or remodeling. Understanding these rules up front can prevent confusion and misunderstanding between the homeowner and the association's board of directors.

Governing Documents
The governing documents of an association consist of more than the CC&R's. Sometimes referred to as the ABC's of association operations, the Articles of Incorporation, the By-laws, and the Covenants each play an important role in how an association is required to operate.

Articles of Incorporation
The Articles of Incorporation are not required for associations with the exception of cooperatives; however, most associations are incorporated as not-for-profit, non-stock corporations. The Articles of Incorporation bring the corporation into existence, define the fundamental purpose and powers of the association, and identify the initial board of directors.

By-Laws
The By-laws are the formal rule book for the administration of the association and day-to-day management of the association. By-laws will typically lay out the specific powers and duties of the association, its officers or directors, and the management company. Other items addressed in the by-laws include notice and quorum requirements for meetings of the association (annual, special, and board meetings), voting rights, and procedures for the election or removal of board members.

Source: Association Times