What are CC&Rs Anyway?

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When planned communities like the 55+ active senior communities of Summerfield, King City and the Highlands are developed, the developer files with the state of Oregon a series of documents designed to uphold the integrity of each community and spell out the duties of each association, and the responsibilities of each of the owners. Those documents are often referred to as the governing documents and are made up of the Articles of Incorporation, the Bylaws, and the CC&R’s (Covenants, Conditions & Restrictions).

The Articles of Incorporation are a one-page document that are filed with the Secretary of State. It states that a non-profit corporation is being formed.

The Bylaws dictate the powers and duties of the Board of Directors (when meetings occur, how the Board is elected, etc.)

The CC&R’s dictate the powers and duties of the corporation and regulate both the physical characteristics of the development and the responsibilities of the residents.

Of all of the governing documents, the CC&R’s are often the least understood but unarguably the most important.

In order to close escrow on a home in planned communities like Summerfield, King City and the Highlands, a series of papers are signed, one of which states that you have read the CC&R’s and agree to abide by them. When escrow closes, you enter into a contractual agreement with the other owners in your community to conform to the dictates of those CC&R’s.

Often the “pain in the neck” aspect of the CC&R’s are focused on, but by doing so we miss the real beauty of their purpose. The CC&R’s provide a structural framework to help residents of different backgrounds, ideals, and perceptions to live together in harmony and by doing so, the community and property values benefit.

If there were no architectural controls (as spelled out in the CC&R’s) or no ability to correct violations of the Rules & Regulations, then there would be no harmony and ultimately each community and the property values would suffer. The CC&R’s are good business…they help ensure that property values are maintained and investments protected.

CC&R’s promote conformity, which encourages harmony, which has a positive impact on the value of the community. The spirit of the CC&R’s embrace protection of your investment and the Board of Directors take their job seriously to protect, preserve and enhance property values.

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