HOAs and CCRs

What are HOAs and CCRs?

The acronyms "HOA" and "CCRs," although they are used daily by real estate agents, may be unfamiliar to the average person. Let's break down these acronyms and get you up to speed on what homebuyers should know.

HOA

HOA stands for homeowner association – a nonprofit organization that is funded by all the association's members and overseen by an elected board of directors. In some states, HOAs must be registered with the department of real estate or another state regulatory agency.

CC&Rs

CC&R stands for covenants, conditions and restrictions – the governing documents for the operation of the HOA. These are the rules that homeowners, tenants and guests are obligated to follow.

Want to paint your house psychedelic pink? Check the CC&Rs first. From the number of pets allowed to parking restrictions, the CC&Rs are the laws of the community. Failure to abide by them could mean a hefty fine for the homeowner. Unpaid fines can lead to foreclosure proceedings and the loss of the home to the HOA.

Here are just a few items commonly regulated by CC&Rs, according to the authors of "Nolo's Essential Guide to Buying Your First Home":

Noise.

Landscaping.

Roofing material.

Fences.

Exterior paint color.

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