Understanding Covenants, Conditions, and Restrictions Under Arizona Law

Living in planned communities offers a sense of belonging and shared responsibility. The utopian purpose of a planned community is convenience, comfort, safety which creates and sustains value for what is likely your biggest investment: your home. However, it also comes with a set of rules known as covenants, conditions, and restrictions (CC&Rs). These CC&Rs are the guidelines established by the developers for those who live in the community, who are typically known as “members.”

These rules can sometimes feel like an unwelcome burden, especially when they seem unclear or overly limiting. Regardless, understanding CC&Rs is crucial for protecting your property rights and ensuring a harmonious living environment.

For homeowner’s associations, especially associations which are governed by a Board of Directors that is made up of unpaid member volunteers, it can be a particularly stressful and feel overly complicated to run, enforce the covenants, and properly fund the association for the future success of the community.

At HagEstad Law Group, our goal is to provide competent and professional legal guidance to homeowners associations to help them understand the covenants, conditions, and restrictions they are tasked with upholding.

What Are Covenants, Conditions, and Restrictions?

Covenants, conditions, and restrictions, or CC&Rs, are rules that homeowners within a subdivision must abide by. For instance, a typical CC&R document might say that any structures added to your home must conform to the existing structure in terms of height, material, and color.

In Arizona, CC&Rs are usually enforced by homeowners associations (HOAs). In many cases, however, they may also be enforced by individual homeowners.

Common Examples of CC&R Provisions

CC&Rs can cover a wide range of topics, including the following:

Property Maintenance

CC&Rs often specify requirements for maintaining the exterior of homes, such as keeping lawns weed-free, maintaining landscaping, and removing debris.

Vehicle Parking

CC&Rs regulations may restrict the number and type of vehicles that can be parked on a property, including limitations on recreational or commercial vehicles.

Restrictions on Pets

Some CC&Rs may prohibit certain exotic animals or certain cat or dog breeds or restrict the number of pets allowed per household.

Construction and Renovations

CC&Rs typically regulate the construction of additions, fences, and other structures. They may dictate the use of specific materials and colors.

Common Areas

Additionally, CC&Rs often govern the use of common areas, such as parks, swimming pools, and recreation facilities.

Understanding How Courts Interpret Covenants, Conditions, and Restrictions

Under Arizona law, a deed containing a restrictive covenant that runs with the land is a contract, the interpretation of which is a matter of law. The court's responsibility is to ascertain and give effect to the likely intentions and legitimate expectations of the parties who create the covenants.

Although Arizona courts have traditionally favored the free use of land, the Arizona Supreme Court, in adopting the traditional contract interpretation, recognized the benefits of restrictive covenants in that they "protect the public and private property owners from the increased pressures of urbanization."

The Importance of Intent

When interpreting CC&Rs, courts attempt to understand the original intent of the parties who created them. This often involves examining the historical context of the covenants and the community's original purpose.

While Arizona courts recognize the importance of protecting property rights, they also acknowledge the need to uphold the community’s overall interests.

This balance is crucial when resolving disputes involving CC&Rs. For example, courts might consider whether a particular restriction is reasonable and necessary to protect the property values or aesthetic appeal of the community.

Homeowners Associations and CC&R Enforcement

Enforcing CC&Rs is a key responsibility of homeowners associations, as these restrictions are designed to protect the community's shared interests.

When homeowners violate CC&Rs, HOAs must take appropriate action to ensure compliance. This may involve issuing written notices, imposing fines, placing liens on properties, or even pursuing legal action.

The veteran real estate attorneys at HagEstad Law Group provide dependable legal guidance to HOAs dealing with complex CC&R matters, ensuring that their actions are legally sound and effective.

Why You Need a Lawyer for HOA Insurance Claims

When homeowners associations face insurance claims, it can be both financially and legally challenging. Having a dedicated attorney on your side can help you protect your HOA's interests and minimize potential financial burdens.

Here's why you need a lawyer experienced in handling HOA insurance claims:

Knowledge of Both Insurance and HOA Law

An attorney focused on HOA insurance claims will understand both insurance policies and the unique legal framework governing homeowners associations. They can identify potential coverage issues and interpret abstruse legal language to ensure that your HOA receives the appropriate compensation.

Strong Negotiation Skills

Insurance companies often try to minimize payouts or deny claims altogether. A skilled lawyer can negotiate effectively with insurers, advocating for your HOA's best interests and securing fair settlements.

Litigation Experience

If negotiations fail, your attorney can represent your HOA in court, protecting your legal rights and pushing for a favorable outcome.

Cost-Effective Representation

While legal representation may seem like an added expense, a lawyer can ultimately save your HOA money by preventing costly mistakes and ensuring that you receive the full coverage you deserve.

Peace of Mind

Having a skilled attorney on your side provides valuable peace of mind. You can relax a little more knowing that your HOA is shielded from legal challenges and financial risks.

Representing Arizona HOAs

HagEstad Law Group is proud to serve Arizona homeowners associations in matters related to the CC&Rs contained in their deeds and by-laws.

The primary focus of our HOA practice is defending homeowners associations against claims from individual homeowners. We’ve represented countless HOAs in fees and dues disputes and CC&Rs enforcement cases, including those involving easements and right-of-way issues.

If you have questions or are struggling to understand the covenants, conditions, and restrictions that apply to your homeowners association, reach out to HagEstad Law Group today.