"A reasonable HOA is like heaven," says Bruce Ailion, a real estate pro and attorney for RE/MAX Town and Country in Atlanta.
In the past, Ailion says he represented a builder of family homes that had no restrictive covenants in place and, he says, the community looked like an eyesore two years later. A nearby community, on the other hand, that did have an HOA with restrictive covenants was thriving. "Those properties looked like new, and year after year the gap in price between the two communities has grown," he says.
However, some CC&Rs may have a few rules that buyers find too restrictive. That's why it's important to know what they are before they ink the deal.
Some common restrictive covenants may include permissible colors for exterior house paint, minimum property and landscaping standards, types of window treatments allowed, restrictions on vehicle storage or recreational vehicle parking, among others.
After buyers submit an offer to purchase a home, they're entitled to receive and review the CC&R for the neighborhood, often within a certain number of days.
Restrictive covenants can be changed, but they must be contested, and it requires a majority vote by the neighborhood members of the HOA.
"Yes, restrictive covenants keep the appearance of the property up and can prevent eyesores such as wrecked cars, unkempt lawns and oddball home colors," Ailion says. But some CC&Rs, he admits, can seem too restrictive and infringe on some rights of residents.
For example, in Keizer, Ore., an HOA would not permit a family to park an RV in their driveway that they needed to transport their disabled child. The family sued and arguing that the HOA rule violates the Fair Housing Act.
Source: "What Are Restrictive Covenants? Read These Rules Before You Buy," realtor.com® (Jan. 9, 2017)
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