Let’s say you’re scrolling through Nashville houses and you notice one classified as an HPR property. No big deal. It’s still just a house, right? Sorry, kiddo – it’s slightly more complicated than that. Nashville HPRs are a hot topic for both buyers and sellers right now.
Nashville’s economy is growing rapidly. Neighborhoods are gentrifying and becoming densely populated.
As a result, many legal real estate issues are rising to the surface. Nashville HPRs (horizontal property regimes) are one such issue.
One thing is certain. You owe it to yourself to understand HPRs. Just imagine signing papers on your new house and realizing that someone is breaking ground on another house in your backyard.
An HPR is a collection of individually-owned residences on the same piece of land. HPRs include apartments, townhomes, row houses and shotgun houses. They are two or more attached or detached single family units on one piece of property.
A common misconception is that HPRs are condos. However, HPR homes are individually owned and condos are collectively owned.
Take a drive through any neighborhood in Nashville and you’ll see single homes being torn down to make room for two new homes. Developers are in favor of stretching the uses of single lots, especially in a high-demand market like Nashville.
But what can you do to prevent getting stuck in an undesirable situation?
A well-designed HPR has some great benefits even without an end to their controversy. HPRs provide additional inventory in high-demand markets like Nashville, where parcels of land would otherwise be used for only one home. Whether they’re historical or contemporary, HPRs give an illusion of density to neighborhoods.
Even width restrictions can be a positive point. These restrictions force Nashville HPRs to build straight up, providing incredible views from rooftop decks and patios. In fact, they’re ideal for buyers who prefer a small yard and an urban feel.
Whether you choose an HPR home or not, no one can question that they serve a practical need for higher density housing in urban areas. If you want a hot product in Nashville’s housing market, this is it.
• In many cases, the zoning of properties permits two separate dwellings.
• You will see the word “duet” used often to describe HPR properties.
Zoning policies are laws that developers are required to adhere to when building homes. In Nashville, the zoning policies that allow two houses to be built on one property were likely created with duplexes in mind. Developers are building two houses on a lot that perhaps formerly only had one. This zoning type is legally known as a subdivision.
To get one, a developer records what is called a “plat” – a blueprint of the property layout. A plat map records the details each property parcel “contains.”
Detached HPR means that the home owners in the development (HOA) collectively own the property. Unlike a duplex or attached housing, these houses can resemble a typical neighborhood. Detached HPR was originally designed to protect homeowners in case one of the owners defaulted.
Here’s the tricky part: The exterior of the structure and the land is maintained by the HOA. You don’t own your yard. You own everything within the sheet rock. You’re purchasing the structure and the ground directly underneath it. The yard or land surrounding the home is shared community property.
We recommend you research whether the HOA is incorporated, recorded with the Secretary of State and current on recording fees. Find out if the subdivision was set up as a “planned unit development” (PUD) rather than a horizontal property regime. Consult a real estate agent prior to entering a contract for purchase because there are legal, lending and insurance implications to each scenario.
This expertise was provided by Dwell Music City, your trusted authority on all things related to real estate in Nashville. It is our pleasure to answer any questions you may have. Contact us here for more information.