Understanding Nashville’s Horizontal Property Regime (HPR): What It Is and How It Works

If you've been browsing the real estate market in Nashville lately, chances are you’ve come across the term Horizontal Property Regime, or HPR. While it may sound like legal jargon (and technically, it is), understanding what an HPR is can help you make smarter buying or investing decisions—especially in a city like Nashville, where the skyline and neighborhoods are rapidly transforming.

What Is a Horizontal Property Regime (HPR)?

A Horizontal Property Regime is a legal framework that allows a single piece of property to be divided into individually owned units—without formally subdividing the land into separate parcels. Essentially, it enables multiple homes (typically two to four) to be built on one parcel of land and sold separately.

In most cases, this takes the form of attached townhomes or detached single-family homes that share a lot but are deeded and taxed individually.

This system became popular in Nashville as a response to urban infill development—where developers aim to increase housing density in desirable, centrally located neighborhoods without going through the lengthy and expensive process of a formal subdivision.

Two Main Types of HPRs in Nashville

There are two primary types of Horizontal Property Regimes in Nashville:

1. Vertical HPRs: These are traditional condo-style developments where different units are stacked on top of one another (e.g., multi-story apartment buildings).

2. Horizontal HPRs: More commonly found in Nashville's urban neighborhoods, these are side-by-side or detached homes on a single lot, sold as separate properties. Despite the name, this version of HPR allows homes to sit next to each other rather than on top.

In Nashville real estate circles, when someone says "HPR," they’re almost always referring to the horizontal version.

🛠️ How HPRs Work: Legal and Practical Aspects

Here’s a simplified breakdown of how HPRs function:

• One Lot, Multiple Homes: Instead of subdividing the land into smaller lots, the original parcel remains intact.

• Shared Ownership of Land: Owners have exclusive rights to their individual units (the buildings) and often have a designated limited common area (like a backyard or driveway), but they technically co-own the land with other unit owners.

• Separate Deeds: Each unit has its own deed and can be sold independently.

• HOA or Legal Agreement: An HPR typically includes a recorded declaration or agreement that governs responsibilities such as maintenance of shared elements (driveways, roofs, etc.), utilities, and insurance.

✅ Benefits of an HPR

• More Housing, Less Land: Perfect for urban infill, where space is limited.

• Lower Land Costs: Developers can build and sell multiple homes on a single parcel, reducing the cost per home.

• Modern Design and Amenities: Many HPR developments feature sleek, modern construction and appeal to buyers seeking new builds in walkable neighborhoods.

⚠️ Potential Drawbacks or Considerations

• Shared Responsibility: You may be partially responsible for shared structures or features.

• Financing Challenges: Some lenders may treat HPRs like condos, potentially complicating mortgage financing.

• Resale and Appraisal: Resale values may depend on the quality and upkeep of the neighboring HPR unit.

• Permitting and Zoning: Not all properties are eligible for HPR treatment—developers must ensure zoning compliance.

🏙️ Where You’ll Find HPRs in Nashville

HPRs are especially common in East Nashville, 12 South, The Nations, Germantown, Wedgewood-Houston, and other trendy, high-growth neighborhoods where land is at a premium and demand is high.

🏙️ Should You Buy an HPR?

If you’re a homebuyer looking for modern construction in a great neighborhood—and you’re comfortable with some shared responsibilities—an HPR can be a smart move. For investors and developers, it offers a profitable way to build multiple homes on urban lots.

Just be sure to:

• Review the recorded HPR agreement

• Understand what is shared and what is private

• Work with a real estate agent familiar with HPRs

• Consult a real estate attorney if you're unsure
  
  

📌 Final Thoughts

The Horizontal Property Regime has played a major role in shaping modern Nashville real estate. Whether you're looking to buy, sell, or build, understanding how HPRs work can help you navigate the market with confidence.

Have questions about buying or developing an HPR property in Nashville? Let’s talk about your goals and how this unique ownership structure might fit into your plans.



We'd been selling HPR's in Nashville for 11 years now, if you have any questions, email us at wes@benkinneyteam.com or give us a call at 615-545-4772