Both existing homes and building sites are often subject to private Declarations of Covenants, Conditions and Restrictions ("CC&Rs"). Typically, the developer of a planned community records the CC&Rs prior to selling any lots in the development. Once recorded, the CC&Rs are binding on future homeowners. CC&Rs can regulate everything from how long you can park a car in front of your house to the color of your curtains and can result in unexpected additional costs to the homeowner.

In many cases the developer creates an Owner’s Association ("Association") the membership of which is comprised of those owning property in the development. Rules on voting power distribution, particularly as to the amount of power retained by the developer, vary dramatically from development to development. Potential purchasers of property in a planned community should examine the sections of the CC&Rs on voting power to determine who controls the decision making of the Association, whose power is often considerable.

The Association generally has the power to enforce all the restrictions, conditions and covenants included in the Declaration, including the power to assess the owners of property in the development for Association costs. These costs may include maintenance of common areas, such as parks, tennis courts, swimming pools and bike trails. Assessments become liens on homes in the development, which can be foreclosed by the Association if not paid. The amount of the assessments may be significant, particularly if there is not a large number of homeowners to share the costs. It is always important to gather as much information as possible on the amount of assessments, both current and prospective, before contracting on a property or closing a sale.

In addition to restrictions on home design and construction practices, the Association also enforces other restrictions, such as those on the size and type of fences, prohibitions on signs, and numbers and kinds of animals. The kinds of restrictions which can be found in CC&Rs are limited only by the imaginations of developers and the willingness of purchasers to buy in a given development.