Considerations When Condemning HOA Property

While there are many benefits to owning property in a common interest community, most people love to hate them. Condemnors should be especially wary when seeking to acquire property owned by a homeowners association. Here are a few things to consider:

1. Are CC&Rs considered property or contracts in your state? The Declaration of Covenants, Conditions, and Restrictions, or CC&Rs, is a document recorded on the property that sets out rules for ownership in the community. The covenants are reciprocal, meaning the owner of each lot has obligations to every other lot, as well as a right of enforcement against every other lot. Most states consider CC&Rs compensable property interests since they are recorded and transfer with each sale of the property. However, some states view them as contractual rights and obligations that are not compensable in eminent domain.