Restrictive Covenants

When buying property in Myrtle Beach, South Carolina, odds are that you will encounter restrictive covenants encumbering your property. These are often called Covenants, Conditions, and Restrictions (CCRs). A key indicator of whether or not a community is subject to CCRs is a statement that there is a homeowner’s association. On the South Carolina Residential Property Condition Disclosure Statement (something you should see before signing a contract in most residential property transactions unless you opt out), there is an addendum where the putative seller should disclose whether or not a property is subject to CCRs.

 What are restrictive covenants or CCRs in Horry County, South Carolina?

Simply put, restrictive covenants are agreements to do (or refrain from doing) certain things with respect to real property. In the real property world, they ordinarily “run with the land.” That means that they bind not just the developer or entity that placed the restrictive covenants on the land, but also people who purchase from the developer (grantees) and others down the chain. Restrictive covenants of record will be an exception on an owner’s title policy.

If there is a homeowners’ association (meaning an entity created to manage and maintain a planned community), CCRs must be recorded in the register of deeds office (ROD) to be binding. Because they are public records, you can review the CCRs before signing a contract to purchase by accessing them through the ROD or by obtaining a copy from the HOA itself.

 Covenants, Conditions, and Restrictions can include the following:

• Covenants for assessments;

• A description of the property that is subject to the CCRs;

• Easements to property owners over common property owned by the HOA;

• Provisions enabling the HOA to file a lien on a lot owner’s property for failing to pay assessments;

• Special setbacks (which can be more restrictive than local zoning requirements);

• Restrictions on home sizes and materials used in construction;

• Architectural Review Committee approval requirements for building plans;

• parking limitations;

• maintenance obligations;

• residential-use-only restrictions; and

• Pet limitations.

What’s important is not what CCRs may or should include, but what they actually say. Cases have stated that restrictions must be “strictly construed, with all doubts resolved in favor of the free use of property.” Strict construction will not override the plain meaning found in CCRs, however.

 DISCLAIMER: You probably already know this, but you can’t become DuRant & DuRant, P.A.’s client by reading anything (including a blog or a website). This blog doesn’t constitute legal advice. Every situation is different. If you want legal advice about your unique issues, contact a lawyer.

 The attorneys at DuRant & DuRant, P.A. conduct closings and provide real estate legal services in Horry and the surrounding counties. Contact the firm today for an estimate on closing costs.