You may have heard or read something about a given property’s Conditions, Covenants and Restrictions, also referred to as CC&Rs.
Some properties have CC&Rs, some don’t. CC&Rs may be executed at the government level or at the community level in a Common Interest Community.
Because Real Estate includes a Bundle of Rights that go along with the physical land, some rights, like how the property is to be used may be restricted by government. For example, in Clark County, the Southern Nevada Water Authority has a water conservation program whereby a property owner is given a monetary incentive for replacing grassy areas with low water consumption desert landscaping. Once an owner signs onto the program, a restriction is placed permanently on the property preventing the owner from converting the landscape back to grass. The restriction becomes part of the deed and it follows the property to subsequent owners of that property. There are penalties involved when CC&Rs are violated, including the possibility of forfeiture of the property.
In a Common Interest Community (CIC), the CC&Rs often determine what color homes should be, where cars should be parked, whether pets are allowed, how old residents in the community must be in order to live there, and how common areas may be used or who can use them.
If you are renting or buying a home, you must be given a written copy of the CC&Rs, if the property has them. In Nevada, this must occur before you commit to continue the transaction of renting or buying.
That really fancy home you want may have CC&Rs so limiting that you may be uncomfortable with them; and they can be a deal breaker. So, when you are presented with your copy of the CC&Rs, it’s highly recommended that you read and understand them before you make the commitment to rent or buy.