Boise Real Estate: HOAs and CCRs
It’s not uncommon for buyers to hear about CCRs for the first time at the closing table.
I don’t think that’s a good idea, so my standard practice is to provide my buyers with a copy of the CCRs (Covenants, Conditions, and Restrictions) upfront to avoid surprises after we get into escrow.
When I do so, I’m often asked “What’s a CCR?”
CCRs are one of the more arcane aspects of owning a home in a subdivision with a HOA (Home Owner Association) and are often used in place of counting sheep when you have insomnia.
They’re usually a thick, boring document, drafted by an attorney (one of those guys who call a 2,000-page document a “brief”), full of confusing legalese.
In other words, CCRs are “the rules” that explain what is allowed and what isn’t in a subdivision.
That’s why you should look them over before signing your offer to purchase a home.
Here are a few things to look for:
HOA Dues
- How much are they now?
- How can they be increased?
- How much can they be increased?
- Is the HOA in sound financial condition? (ask for a copy of their current financial statement)
RV Storage On Your Property
- Can you keep your RV on your lot?
- Does your RV have to shielded from street view?
- Does your RV have to be stored in its own garage?
- How long can someone live in a RV on your property?
- How long can you have your RV on your property? (before and after RV trips)
Animals
- How many pets can you have on your property?
- What kind of pets can you have on your property?
- Must you keep your pets on leash?
Antennae
- Can you have an outside antenna on your property?
- If so, what size antenna is allowed?
- Where can it be installed?
- Must it be pre-approved by the HOA before installation?
Parking
- Is on-street parking allowed? (be sure to check city ordinances too)
- How many cars are allowed to be parked on your property?
- Must your cars be parked inside your garage?
This is just a sampling of things to consider.
Do your homework and understand the CCRs before you make that buying decision!
August 22nd, 2011 Posted in Inside Real Estate
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2 Responses to “Boise Real Estate: HOAs and CCRs”
By Chris G. on Aug 23, 2011
Great post, Phil!
In my recent experience reviewing 2 sets of CCRs in CA and ID, I noticed it was typically *not* listed how much the dues are. More likely, you’d get a set written in (say) 1995, and dues are (say)$50/mo; but now they’re $200/mo. You’d have to find the $200/mo number by asking someone from the HOA, since it may not be listed in the CC&R’s. So watch out for that.
Also, an opinion…lots of folks complain about HOA nazis and oppressive CC&R’s…hey, if you don’t like them, don’t buy in a community that has them. If you bought in a CC&R community, you need to follow the rules, or work with the HOA to waive them. I get tired of folks complaining that their condo HOA won’t allow their 50lb dog…sorry dude, you had a chance to not buy here when you read the CC&R’s.
Finally, I hear rumors that the FCC has made it illegal/unenforceable for HOAs to ban satellite dishes. Of course, when I go to research it, I don’t see much. Do you know anything about that? Yeah, I see a lot of DirectTV in HOA communities, but maybe the HOA isn’t aggressively enforcing.
By philhoov on Aug 23, 2011
We usually get current HOA dues from listings (unreliable source) and when the escrow officer verifies both the dues and transfer fees.
It is often difficult to determine who to contact because some HOAs have a subdivision resident handling it and they don’t respond.
And, others are managed by HOA management companies.
Regarding dish antennae, I see them everywhere and haven’t heard of any local HOAs objecting to having them, but many do want approval prior to installation.
I agree ~ if you want some control over your surroundings, accept the limitations of having a HOA.
If you want to live with blue tarps over inoperable cars on blocks, you can avoid having your HOA tell you how to live.
Your choice!