In real estate, Covenants, Conditions and Restrictions pertain to communities which are governed by a homeowner’s association. CC&R’s are the rules and guidelines set forth by the homeowner’s association to help preserve and maintain the property values in the community.
Examples of CC&R’s
Homeowner’s associations set up rules and guidelines for the residents to help maintain and preserve the neighborhood. For example, you may be required to keep the front yard maintained (keeping the grass mowed, trees & bushes trimmed & weeds under control). Other examples may include the number of trees & bushes required in the front yard as well as a list of accepted trees. CC&R’s can even determine the color of your house! Often times you will be provided a list of acceptable colors determined by the HOA to choose from. It’s easy to see why some residents have disagreements with HOA’s, but it’s important to remember the purpose behind guidelines. Preserve, protect & maintain the property values.
Prospective buyers should be aware of the CC&R’s in neighborhoods they are considering. Some associations may have dog breed and parking restrictions, that could be valuable information prior to purchasing.
Prior to purchasing a home in a covenanted neighborhood, homeowners will sign documents stating that they have read and agree to the terms set forth in the CC&R’s. Violating the terms enforced by the HOA could possibly result in fines, forced compliance or even lawsuits. For example if you decide to paint your house a color not on the approved HOA list, they could enforce a fine as well as force you to repaint the house.
HOA dues and assessments can be billed monthly, quarterly or even annually. Often times these dues can also cover services like trash, water and sewer. These dues as well as non-payment penalties can be found in the CC&R’s. If a homeowner falls behind on their dues, the HOA can go as far as to getting a lien on the home.
In summary, CC&R’s can help homeowners maintain and preserve home values, whether the market is in correction mode or thriving. The rules set forth by HOA’s may seem a little heavy at times, but in many situations communities rely on the structure provided by the CC&R’s.
To learn more about CC&R's and other real estate topics, visit our real estate knowledge base or contact the Arizona Key Team.
In the world of real estate, we refer to this document as the “SPDS” (spuds). The Seller’s Property Disclosure Statement is often provided by the sellers in a real estate transaction. This document asks the seller to provide information about the property and its known condition. The SPDS is a seven page document that emphasizes the Arizona law, that requires the seller to disclose material (important) facts pertaining to the property, regardless of whether they were asked by the buyer or their agent. This obligation stands even if both parties agree to waive the SPDS.
Buyers in a real estate transaction should be aware that there may be facts about the property that are not known by the sellers. Buyers are encouraged to take an active role in obtaining information about the property.
Brokers are not responsible for the verification of the items addressed in the SPDS, so the buyers should review the document with caution and verify any areas of concern.
What Are Sellers Not Obligated To Disclose?
The following are situations where the seller is not obligated to disclose that the property is or has been:
Although the sellers are not obligated to disclose these items, they cannot willfully misrepresent the known facts. Sellers are encouraged to answer truthfully if asked, or respond that they are not legally required to answer the question.
What Types Of Questions Are Asked On The SPDS?
The Seller’s Property Disclosure Statement is a questionnaire provided by the Arizona Association of Realtors and is organized by line numbers much like many other real estate documents. Lines 1 - 279 ask the sellers to provide information like Property and Ownership (legal owners, address, title issues, etc...), Building and Safety (roof, wood infestation, plumbing, pools, electrical), Utilities (electricity, gas, cable, internet, phone, garbage, fire services, water),Environmental Information (soil, noise, drug labs, airports, asbestos, flood, etc…), Sewer/Wastewater Treatment(sewer connection, septic).
Once completed by the sellers and reviewed by the buyers, the SPDS are signed by both parties (lines 280 - 295) and become part of the Residential Resale Real Estate Purchase Contract.
When Are The Sellers Required To Provide The SPDS?
When using the AAR (Arizona Association of Realtors) Purchase Contract, the seller is required to deliver the SPDS to the buyer within five days of contract acceptance. By not doing so, the sellers may be in breach of contract allowing the buyers to cancel and receive the earnest money deposit.
To learn more about the Seller Property Disclosure Statement or any other real estate topics, visit our Real Estate Knowledge Base or contact the Arizona Key Team.