Covenants, Conditions & Restrictions

Also known as CC & Rs, Declarations, Master Deed, to name just a few.  By whatever name or abbreviation they go by, these are written rules, limitations and restrictions on use, mutually agreed to (by virtue of purchasing in such a community) by all owners of homes in a planned community or condominium complex.

CC & Rs may prescribe size and placement of homes, exterior colors, pets, ages of residents, parking, and other conduct to protect the quiet enjoyment of all the various members of the community.  CC & Rs are generally enforced by the homeowners association and, in extreme cases, by individual members who bring legal action against other association members or boards of directors.  CC & Rs “run with the land” and thus are permanent for all practical purposes, so future owners are held to the restrictions.  CC & Rs are filed with the Register of Deeds in the county where the association is located.  There are no state statutes in North Carolina or South Carolina that require these to be provided to buyers or prospective buyers.

Articles of Incorporation

Are the basic charter of all corporations (In the case of an association, a non-profit corporation)  which spells out the name, basic purpose, incorporators, amount and types of stock, if there is stock, which may be issued. Each state has its own system of approval of articles, to prohibit names which are confusingly similar to those of existing corporations, to set specific requirements for non-profits (charitable, religious, educational, public benefit, and so forth), and to regulate the issuance of shares of stock. Articles must be signed by the incorporating person or persons or by the first board of directors. The starting point for filing and approval of articles of incorporation is usually the state’s Secretary of State.

Bylaws

Are the written rules of conduct for a corporation. They should not be confused with the articles of incorporation, which only state the basic outline of the company, including any stock structure. Bylaws generally provide for meetings, elections of boards of directors and officers, filling vacancies, notices, types and duties of officers, committees, assessments and other routine conduct. Bylaws are in effect a contract among members and must be formally adopted and/or amended.  Bylaws can be added as an addendum to CC & Rs, but neither North Carolina nor South Carolina has any statutory filing requirements like the CC & Rs and the Articles of Incorporation.

Rules & Regulations

The board of directors generally has the authority to establish reasonable Rules and Regulations.  This authority is typically found in the CC & Rs, but can be found in bylaws or in the articles of incorporation in rare instances.  These Rules and Regulations may provide for imposition of fines or penalties for the violation of the CC & Rs.