What Are Real Estate Covenants, Conditions and Restrictions? (CCR)
Covenants, conditions, and restrictions are specific rules between parties regarding the use and improvements of real estate property. These “rules” are generally between the developer of a real estate development and the purchasers of the land. The covenants, conditions and restrictions may sound a little scary, but act as a measure for maintaining a certain level of property value. Most Luxury Real Estate Developments use these tools to help insure the property maintains a high value. For example, these “rules” may require that any home be a minimum square footage, which keeps future property values consistent as all of the homes in a particular luxury development will have similar sized homes (or at least a minimum).
A covenant is the language within a conveyance of title to do (or refrain from doing) something specific. An example of a covenant would be to not build a structure within 10 feet of a property boundary (this is NOT necessarily a specific covenant in Lakeshore Louisiana and is only used as an example). Most, but not all, covenants “run with the land,” passing the rule along to all future property owners. This keeps someone from selling their land or property to a close relative to circumvent the covenant.
A restriction limits the use of the land in some way. A “condition” in a conveyance (property transfer), on the other hand, is a qualification of the particular estate granted. It serves as a pre-condition of the property transfer and can possibly be a precedent to, or subsequent to, some specific act. Any condition applied to a property title must be agreed to by all parties. Any type of condition must be legal (cant racially discriminate for instance). All CCR ‘s provide, by nature, a burden and a benefit. Any property that is limited in any way is the burdened parcel. Any other parcel of land affected by the limitation essentially reaps the benefits of the Covenants, Conditions and Restrictions.