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Horizontal Property Regime 101

If you live in Nashville youve probably seen these tall, skinny houses stacked side by side on one plot of land going up. These tall, skinny houses are called HPRs. Many neighborhoods in Nashville are tearing down single homes to make room for two separate new homes.

What is a Horizontal Property Regime?

  A horizontal property regime (HPR) is a zoning policy that allows you to build two new houses on one piece of land that previously had one house. Think of a HPR as the vehicle that allows a property owner to sell "units" to separate individuals while the dwellings/units are on a single piece of property. It can be as few as 2 units or as many as 100. Builders and Developers use this method mostly commonly when constructing townhomes. Once a Master Deed is recorded, it establishes an HOA, guidelines/restrictions, and then also has an Exhibit that outlines which units are which. You still have to file the entity (HOA) with the State of TN but after that the tax assessor will pick it up and establish individual tax ID numbers to each unit for tax purposes. Each unit owner owns the land directly underneath that unit, but each unit owner would have the same equal ownership interest of the rest of the "common ground" throughout the rest of the parcel. There are times that the common ground is termed to be Limited Common Element, which allows the owner of that unit to have sole use of that limited space (essentially saying this portion is your yard) but even in that instance all the other unit owners would still have an equal ownership interest in that limited common area.  

Where are HPRs Built?

  They can be built in neighborhoods with certain types of residential zoning such as areas zoned for two-family residential buildings, Multifamily, or Mixed-Use zoned properties. Horizontal properties differ from state to state.  

Why Are Horizontal Property Regimes So Popular?

  Year after year, more people are moving to Nashville than there are available homes. The limited supply and high demand for newcomers lead to the construction of HPRs. HPRs are a great option for those who want little to no yard maintenance. Have more questions about Horizontal Property Regimes in the Nashville area? Contact a Benchmark Agent today!

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