Big housing case looms over small print

Buying a home with covenants, conditions and restrictions — known as CC&Rs — provides protections but can create problems for those homebuyers who don't make themselves familiar with all the fine print.

On Wednesday, the Utah Supreme Court is scheduled to hear arguments surrounding a case involving a couple who purchased a property in what was originally designed to be for adults 55 and older but was later changed to include residents of all ages by the developer.

In 2002, Dennis and Marilynn Moler contracted to live in Redfeather Estates in Sandy, a housing development that was initially marketed as a 55 and older community. They later discovered the CC&Rs were revised to include residents of all ages and have since filed a lawsuit against the developer, Christopher McCandless, and CW Management Corp., alleging the age restriction was changed without their knowledge.

The developer contends the Molers were notified about the age revision in accordance with the CC&Rs. The Supreme Court will consider whether certain witness testimony should be allowed in their case, which is pending in 3rd District Court.

The Molers, on the advice of their lawyer, Evan Strassberg, declined to comment on their lawsuit. McCandless, on the advice of his lawyer, Lincoln Hobbs, also declined to comment.

While their case has yet to be decided, real-estate experts say it sends a reminder that in today's world of complicated contracts and legal agreements, understanding the responsibilities of the parties involved is paramount.

"The most important thing for the buyer to do is to read the covenants, conditions and restrictions and don't just think they are something that is meaningless," said real-estate attorney Jon C. Heaton.

Heaton suggests having an attorney read the CC&Rs along with the buyer to ensure proper understanding of the contract. He added that the rules of CC&Rs are typically written and approved by the homeowners association and lay out the guidelines on anything from property maintenance to building standards. However, in some instances such as developments that have not yet been constructed, the developer may be the author.

According to Heaton, in those cases, the developer may have various classes of voting memberships within the property association, or the developer may have expanded voting rights, all of which would be explicitly described in the document.

He said property is also subject to zoning ordinances, which are set by local governmental entities such as municipalities, the county or sometimes the state.