Neighborhood Covenants

An official definition of Covenants, Conditions and Restrictions (CC & R’s) from the Real Estate Dictionary reads: “The basic rules establishing the rights and obligations of owners (and their successors in interest) of real property within a subdivision or other tract of land in relation to other owners within the same subdivision or tract and in relation to an association of owners organized for the purpose of operating and maintaining property commonly owned by the individual owners.”

In short, what it means is that when someone opts to have a parcel of their land divided, they have the right (within certain discriminatory limitations) to direct certain aspects of future building and development. For instance, they may require all dwellings to be built within certain size or with specific amenities (full brick, wood siding, no out buildings, etc.) And, anyone who decides to build or purchase a resale home in that neighborhood must also abide by the original rules. The covenants or restrictions also serve a broader purpose – namely, to promote more universal value within a neighborhood for resale and appraisal.

Covenants are normally enforced in civil or small claims court, which hear complaints lodged by an organized homeowner’s association or an individual. And, unless the restrictions are superseded by a judge’s decision or later discriminatory legislation, the homeowner may be ordered to rectify the source of complaint (keep their lawn mowed, remove the non-approved structure, or close an in-home business, etc.)

When purchasing a home, there are contractual obligations on the amount of time a prospective owner has to review the covenants and back out of the deal if there are any discrepancies between the ways they want to use their property versus the requirements of their neighborhood. It is wise to have your realtor review the covenants with you so you can determine if the property is going to serve you well in the coming years.

Did you know our web site posts several neighborhood covenants? If you’re interested, just go to http://www.move2indy.com/ and select Neighborhoods and follow the prompts. If you have questions about moving, building, selecting your first home or moving up to your next home, contact DAVID BRENTON’S TEAM.

When you are serious about moving… put our TEAM to work for you!