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Horizontal Property Regime

Horizontal Property Regime or HPR’s are all the rage in Nashville and other rapid growth cities. HPR in real estate means that you buy a property that is large enough to either renovate and convert into two homes or tear down and build a structure divided into two or more separate residence.

In either scenario the double home unit structure is on one property tax lot. Investors and builders are motivated to build this type of structure because they essentially double their profit. Sounds good on their end but what about the buyer of this new type of property?

Here’s what you need to know before buying an HPR;

Pros of an HPR

  1. An association must be formed in order to build an HPR. The association collects funds to take care of the shared portion of property. This includes all land on the lot. Because of this there is typically little to no yard work for an HPR home. The association is typically set up to take care of the shared portion of property; this includes all outdoor space, landscaping and lawn.
  2. If you like roof tops you will like the fact that most HPR’s are built with a rooftop living area for entertaining and enjoyment.
  3. The HPR factor can lower the sale price in comparison to other homes with similar square footage and no HPR.

Cons of an HPR

  1. An HPR requires an association. The association will cost you, the new owner, a monthly fee.
  2. You co-own the property with the other resident(s). The property was originally one lot that had a new structure built on it to accommodate two or more residential units. Consequently, it is still on one tax lot. The new owners co-own the lot.
  3. An HPR has rules the owners must follow because of the HOA requirement. This may include a pet limitation, noise restrictions and outdoor appearance agreement.


Definition of an HPR

A horizontal property regime or HPR is a zoning policy. The HPR policy is legally applied to a property to convert it to accommodate two residences on one lot. The buyers co-own the property and share a single tax bill.

HPR Real Estate

The Horizontal Property Act legally instituted HPR real estate. This property act is used when lot size requirements don’t allow for the lot to be divided into two smaller separate lots. Each state has specific laws on horizontal property.

Tall and Skinny

The Tennessee state law for HPR’s was originally intended to be applied to building condos. More recently it is being used to build the “Tall and Skinny” townhouse style homes.

These attached and detached homes gain their square footage by being built high instead of wide. There are often three stories or two stories with the roof top being a third outdoor living area.

Some HPR homes, especially in the Green Hills, Belle Meade, Forest Hills and Oak Hills areas are built in such a way that you can’t even tell they are HPR property from the street.

 

What Does Detached Home Mean?

A Detached HPR is two separate houses built on one lot. The two house structures must be at least 6 feet apart. The owners co-own the property. The surrounding land is considered a common property lot that’s maintained by the homeowners association.

HPR – Attached

An attached HPR is one large structure split into two. The co-owner residence share the middle dividing wall.

HPR – Zero Lot Line

New Zero Lot Lines where made illegal in 1984. The units that were already built were grandfathered in. A Zero Lot Line property is essentially a duplex that is separately owned, not co-owned.

For more definitions on zoning be sure to check out this article, “Nashville Zoning“.

Have an HPR you want to sell or buy? Book your appointment today to get us started!