Declaration of Condominium and Easements, Covenants, Conditions, and Restrictions

The meaning of the term “covenant” speaks to the underlying principle behind the “Covenants, Conditions, and Restrictions.” A covenant is a mutually binding promise, and it is the elaboration of the details of this promise that defines the CC&R documents.

CC&Rs govern the participation in the association. To extend the analogy of a government to the CID governance structure, the CC&Rs might be thought of as the basis of “Constitutional law” of the community association. In other words, like the U.S. constitution does for the United States government, CC&Rs impose the rights and the responsibilities of the CID structure. CC&Rs are enforceable rules and regulations that protect the economic value, the architectural harmony, and the long-term desirability of the property established by the declarant (or developer). The policies laid out by the CC&Rs may not be easily amended; frequently they require a majority of the vote of owners, and in some cases, an affirmative vote of 100 percent of the members may be required to amend them.
 
The CC&Rs are typically filed by the original declarant with the County Recorder’s office. In some parts of the country, the CC&Rs are called the declaration or master deed. Typical of most CC&Rs are the following components:

• Outlines owners’ rights and obligations
• Imposes restrictions that are typically transferred to subsequent owners and are enforceable to all owners
• Explains that by contract (purchase) each owner make a covenant with the community association to abide by the declaration
• Describes all physical elements of the association
• Defines each unit
• Defines common areas
• Defines percentage of ownership or rights to the common areas
• Identifies amendment procedures
• Includes statement of compliance with state and local statutes that govern common interest developments
• Summarizes definitions
• Details maintenance requirements of the unit owners’ and for the association
• Identifies easement rights
• Outlines priority of mortgage holders
• Outlines voting rights (if not outlined in the Bylaws)

  - In most cases, each member of the association that is an owner should have full vote
  - In some cases the developer may retain a percentage of voting rights in the Board until a specific time has elapsed or a percentage of the association units have been sold

• Defines the mechanism for decision-making

All forms of CIDs have CC&Rs, or in the case of cooperatives, occupancy agreements, or other forms of restrictive agreements. It is important to note that this document will vary widely between CIDs, as they are drafted to serve the goals of the CID under the terms of the development. Time frames for late charges to be imposed on late assessments, dates of payment, and the number parking spots per square foot for office condominiums are examples of the specific information that CC&Rs hold for each CID (if not by the bylaws).

Legal Issue:  Some CIDs stipulate a “super majority” number of votes required for actions such as removing a board member. The definition of super majorities may be determined by state regulation of CIDs.