What is a covenant-controlled community?

Covenant-controlled communities explained

A covenant-controlled community in South Carolina is a neighborhood where all property owners must follow a set of recorded rules called restrictive covenants (often called CC&Rs). These rules are recorded in the county land records and “run with” the property. The covenants usually cover things like home appearance, fencing, landscaping, parking, and property use to maintain the neighborhood’s look and value.
 

Key characteristics of covenant-controlled communities

Every community is unique, but many covenant-controlled communities share a few practical features:

• Legally binding rules (restrictive covenants) recorded with the property deed
   
• Often mandatory membership in a homeowners association (HOA) for property owners
   
• Required HOA dues or assessments to maintain common areas and amenities
   
• Use restrictions, such as limits on rentals, parking, or business activity
   
• Enforcement authority allowing the HOA to issue notices, fines, or take legal action if rules are violated
   
• Shared amenities and common areas such as pools, clubhouses, playgrounds, or green space maintained by the HOA

Where covenants come from

Covenants usually originate when a developer records a declaration during the creation of a subdivision or planned community. That declaration often creates the association (if applicable), establishes restrictions and standards, and sets assessment obligations and common area responsibilities.

Over time, covenants can also be amended if the declaration provides a valid amendment process and the community follows it.
 

Examples of covenants

• Architectural approval: Homeowners must get HOA approval before making exterior changes or additions.
   
• Exterior standards: Homes must meet specific appearance guidelines for materials and colors.
   
• Landscaping requirements: Lawns and yards must be properly maintained and kept neat.
   
• Fence restrictions: Fences must meet height and style rules set by the community.
   
• Parking limits: Certain vehicles may be restricted from street or driveway parking.
   
• Rental restrictions: Leasing may be limited or require minimum lease terms.
   
• Pet rules: The number or type of pets may be regulated.
   
• Maintenance obligations: Owners must keep their property in good repair.

Rules vs. covenants

HOA covenants are the legally binding, recorded restrictions that set the big-picture standards for the community, and they usually can’t be changed without a homeowner vote. Rules and regulations are the board’s day-to-day policies that explain how those covenants are applied (for example, how to submit an architectural request or what counts as a parking violation), and the board may be able to adopt or update them without a full membership vote.
 

HOA vs. covenant-controlled community

A covenant-controlled community is a neighborhood governed by recorded property rules, while an HOA is the organization that may be formed to manage and enforce those rules.

Not every covenant-controlled community has an active HOA, although most modern developments do. In communities without an HOA, enforcement may fall to individual property owners or, in newer developments, the developer.
 

Financial responsibilities of homeowners

Homeowners in covenant-controlled communities are required to pay assessments as outlined in the governing documents. These assessments typically cover common area maintenance, landscaping, insurance, utilities for shared spaces, and contracted services.

Associations may also levy special assessments to fund major repairs such as roof replacements, road resurfacing, or storm damage. Failure to pay assessments can result in late fees, liens, or other collection actions permitted by the declaration and applicable laws.
 

Insurance considerations

Covenant-controlled communities often carry master insurance policies that cover common areas and, in some cases, shared structures. However, this does not replace a homeowner’s individual insurance policy. Owners are usually responsible for insuring their home, personal property, and liability. Reviewing both the association’s policy and your personal coverage can help clarify where responsibilities begin and end.
 

The role of the board of directors

The board of directors is the governing body of the association. Elected by homeowners, the board adopts budgets, sets assessment levels, enforces covenants, approves contracts, and oversees maintenance of common property.

Board members are fiduciaries, meaning they are required to act in the best interest of the association. Most boards work with professional property managers to carry out their responsibilities in compliance with governing documents and applicable law.
 

Amending covenants

Covenants can only be amended according to the procedures outlined in the recorded declaration. This typically requires approval from a specified percentage of property owners and formal recording of the amendment with the county.

Some amendments may also require mortgage holder consent. Because amendments affect all owners, boards should review proposed changes carefully with legal counsel to support compliance with South Carolina property management laws and the community’s governing documents.
 

How covenants are enforced

If a rule is violated, the HOA typically sends a written notice and may offer a hearing before taking further action. Depending on the governing documents, the association may issue fines, suspend privileges, or pursue legal steps. Consistent enforcement and proper documentation are key to avoiding disputes or unenforceable rules.
 

What covenants cannot do

Covenants and rules cannot override higher-level law, and boards should be especially cautious around:

• Fair housing compliance (discrimination and disability-related issues)
   
• Selective enforcement risks (treating owners differently without a defensible reason)
   
• Overreaching rulemaking (creating restrictions that go beyond the declaration authority)

The safest operational approach is to keep standards clear, apply them consistently, and document decisions.
 

Buying into a covenant-controlled community

Before you buy, review the community’s recorded declaration, any amendments, and current rules so you understand your responsibilities. If there’s an HOA, take a close look at the budget, reserve funding, and any upcoming major projects that could affect assessments. In communities without an active HOA, clarify who maintains shared features like entrances or common areas to avoid unexpected surprises.
 

About FirstService Residential

As North America’s leading property management company, FirstService Residential serves South Carolina HOAs with local expertise backed by national resources. Our teams support board members with meetings, recordkeeping, financial management, resident communication, and 24/7 customer care. This way, board members can focus on long-term goals instead of day-to-day administration.

Contact a member of our team today to learn more about how we can serve your community.

This information is provided for general informational purposes only and is not intended to constitute, and should not be relied upon as, legal, regulatory, financial, or operational advice, or as a representation or guarantee of any specific services, capabilities, or outcomes. Property management needs, regulatory requirements, market conditions, and available services vary by jurisdiction, property type, and community. FirstService Residential provides services through locally based affiliates and associates, and services and results may vary by community, region, contractual terms, and applicable law.