Pretty Neighborhood? Beware the CC&Rs...
Okay, so I took some buyers out last week and we found a beautiful home in Berry Gardens subdivision in Arroyo Grande (see the pictures of this lovely home). It was just what they were looking for; single level, with 3 bedrooms and 2 bathrooms, nice and sunny kitchen and living room, great backyard, and so forth.
We saw the home during an open house, where we asked if there was a Home Owners Association and what the CC&Rs (Covenants Conditions and Restrictions) were.From my experience, all subdivisions have CC&R's and by the looks of this pretty little neighborhood, it would be no different. So, I was surprised when the listing agent said that there weren't any...
Just so you know, CC&Rs are rules and regulations for the homeowners. They are designed to support the look and feel of the subdivision by dictating things like if you can park your car in the driveway, if you have to keep the front lawn and the color you may paint your house, etc...
So, even though the place looked like there were CC&Rs, we were told there was not. I wasn't sure how it all stayed so pretty, but we made an offer.
The offer was beautiful; all cash, 30 day escrow. The sellers were delighted, and the buyers were too. They accepted the offer right away, and off we went into our escrow. We scheduled the home inspection right away.Of course it went really well for this little beauty of a home. I had seen a couple of fogged windows that would probably be replaced under warranty..that was about it as far as problems.
I received my package from my wonderful escrow officer. You'll never guess what it contained...wow, you're good....The CC&Rs!!! So we're looking these rules over and there are some kind of important things in them. For example, no drying laundry on a line, no antennae, no sheds as in garden sheds in the backyard. What is funny is that there is no Homeowner's Association to enforce the rules. I called an attorney who works for the subdivision and who lives there, and she said that the CC&Rs are basically enforced sort of informally by neighbors. So, if an owner wanted to do something that breaks a rule, it's okay as long as no one complains....Quite arbitrary really.
My clients declined to buy this home because of the restrictions. They just did not want to have to consider CC&R restrictions every time they wanted to do something with the property they own. So, we canceled, and I totally understand. It is important to note that they canceled within their rights per the purchase contract and will be receiving their full deposit back. Their cost for this transaction was the home inspection ($355.) and their wasted emotional excitement.
We will find them something else, more suitable.
Covenants, Conditions and Restrictions are something all buyers need to consider when shopping for a home in a subdivision. Many people don't mind them. In fact the seller here was not even aware of them. But you should be. Especially if you want a garden shed, or want to set up your antennae for your radio.