Common-Interest Communities and the CC&R Document
Whether it’s a condominium building, town home complex, or a unit development of single family houses, these pieces of real estate are considered a common-interest community. Additionally, the recorded document that creates and governs a common-interest community is called The Declaration, Covenants, Conditions and Restrictions, also know as CC&Rs.
Within a common-interest community, each individual, by virtue of ownership of a unit within the community, must share in the support and maintenance of the community. By taking up ownership, purchasers become part of the homeowner’s association (HOA) and become bound by the CC&Rs. They assume responsibility for fulfilling the obligations listed in the document. Set restrictions, limitations, and boundaries are detailed within the pages, as well of acknowledgment of the fact that all unit owners have a right to use and enjoy common elements, such as sidewalks, walkways, roadways, landscaping and etc. There are also limited common elements identified, which are reserved for the use by just a fraction of tenants. This could include decks, patios, storage spaces, entryways, or storage spaces.
Common-interest communities offer homeowners and buyers huge benefits, such as scalable amenity costs, which will prove to offer tenants lower costs for amenities. Additionally, common-interest communities seek to maintain and safeguard the quality of life in the community, and property values are protected from the threat of disrepair, misuse, and abandonment.
It’s important that real estate brokers and buyers review CC&Rs before purchasing to identify specificity. There are a number of things to watch out for, and one of those are “right of first refusal” restrictions, which allows the owner’s associate or another unit owner the right to purchase the unit at the price negotiated by an eligible buyer. It’s also important to look at parking space allocation, learning if parking spaces are assigned by the HOA, if they are freely conveyed from one party to another, or if parking spaces are not allowed to be conveyed separately from a particular unit.
The CC&R reveals that purchasing a home isn’t simply about a structure, but the larger community that one is buying into. It’s important to do due diligence and learn about costs, restrictions, and obligations associated with living in a common-interest community. In Colorado, the seller of a property must share homeowner’s association documents, which includes bylaws, board meeting minutes, financial documents, rules, regulations, and the CC&Rs.
Assured Title Agency is a Denver, Colorado-based title insurance company dedication to provided the highest quality customer service and peace of mind when conducting complex real estate transactions. Be sure to visit our websites:and . #titleinsurance #Denver #BeAssuredNow