The Tennessee Horizontal Property Act: A guide for your association

The Tennessee Horizontal Property Act (Tenn. Code Ann. §§ 66-27-101 et seq.) is a state law that creates the legal foundation for dividing a property into individually owned units with shared ownership of common areas. The Act provides the framework for what is called a Horizontal Property Regime, or HPR.

An HPR allows property owners or developers to establish multi-unit communities where each resident holds title to their unit and a shared interest in the land and common spaces. While most commonly used for condominiums, the Tennessee Horizontal Property Act can also apply to planned unit developments and townhome communities organized as HPRs.

It is important to note that the Tennessee Horizontal Property Act applies to condominium associations created before January 1, 2009. For communities created on or after January 1, 2009, the Tennessee Condominium Act of 2008 (Tenn. Code Ann. §§ 66-27-201 et seq.) governs. Certain provisions of the 2008 Act may also apply prospectively to pre-2009 condominiums for events occurring after January 1, 2009. Understanding which statutes apply to your community helps boards and owners follow the right set of legal requirements.

This article is not intended to and does not constitute legal advice or create an attorney-client relationship. Board members should consult their association’s attorney to discuss the legal implications of their decisions or actions prior to proceeding.
 

Key provisions and regulations outlined in the Act

The Tennessee Horizontal Property Act includes several important provisions that define how HPRs operate. Some of the most significant include:

• Creation of an HPR: Developers may establish the regime by recording a master deed or lease, or by plat.
   
• Unit ownership: Each owner holds exclusive rights to their unit and a proportional interest in the shared common areas.
   
• Common areas: All owners share responsibility for maintaining and funding common elements like hallways, lobbies, or recreational facilities.
   
• Governance: Administration must be provided for in recorded bylaws, and may be handled by an administrator or a board. The recorded bylaws must explicitly define the respective responsibilities and authority of the board and any individual administrator. The board is responsible for governance, policy-making, and oversight, while an individual administrator, if appointed, is responsible for day-to-day management as delegated by the board. The bylaws should clearly delineate the scope of authority for each, ensuring that the board retains ultimate decision-making power and is not exposed to liability for actions outside its defined authority.
   
• Assessments: The Act authorizes associations to levy assessments on owners to fund maintenance, repairs, and operations.

These provisions form the backbone of how the Tennessee Horizontal Property Act functions, guiding both developers and associations through the life cycle of an HPR.
 

Other important property laws in Tennessee

The Tennessee Horizontal Property Act (Tenn. Code Ann. §§ 66-27-101 et seq.) applies mainly to condominium communities created before January 1, 2009, while the Tennessee Condominium Act of 2008 (Tenn. Code Ann. §§ 66-27-201 et seq.) governs most associations created on or after January 1, 2009. Some provisions of the 2008 Act may also apply to older communities in certain situations, particularly for events or actions occurring after January 1, 2009.

Also, many homeowners associations (HOAs) and condominium associations in Tennessee that are incorporated as nonprofit corporations must follow the Tennessee Nonprofit Corporation Act under Title 48. That law governs things like how boards are formed, meetings are held, and bylaws are maintained. Additionally, legislation passed in 2023 (Senate Bill 863 / House Bill 750) requires many condo boards to update their reserve study every five years going forward.
 

Establishing a Horizontal Property Regime (HPR)

Creating an HPR under the Tennessee Horizontal Property Act requires several formal steps. Developers or property owners must strictly adhere to the procedural requirements set forth by the Act and the applicable county register of deeds. The following steps must be followed in detail:

1. Prepare and record key property documents: This includes recording a master deed or lease, or a plat, in accordance with the Tennessee Horizontal Property Act and the specific formatting and content requirements of the county register. The master deed or lease must clearly identify the property, describe the units and common elements, and include all information required by county. regulations. All documents must be executed, acknowledged, and notarized as required by law.
    
2. Draft HPR documents: These documents must establish the rights and obligations of owners, including detailed provisions for assessments, insurance programs, governance, and maintenance responsibilities. The documents should also specify voting rights, amendment procedures, and dispute resolution mechanisms, and must be drafted in compliance with both state and county requirements.
    
3. File all documents with the county register: All required documents, including the master deed or lease, bylaws, and plat, must be filed with the county register of deeds in the county where the property is located. The documents must meet all formatting, indexing, and fee requirements of the county office. Recording these documents is essential to make the HPR legally binding and enforceable.
    
4. Form an association or board: Adopt and record bylaws specifying the form of administration (administrator or board of administration) and related procedures. The bylaws must be executed and recorded with the county register, and should include detailed procedures for meetings, elections, recordkeeping, and the powers and duties of the board or administrator.

For planned unit developments created under Part 1, additional documents may be required, such as a declaration, bylaws, and a plat clearly delineating private and common elements. All such documents must be prepared and recorded in accordance with the requirements of the Tennessee Horizontal Property Act and the applicable county register.
 

Role of governing documents in an HPR

Governing documents are the backbone of a Horizontal Property Regime. The Tennessee Horizontal Property Act sets the legal foundation, but it’s the documents themselves that guide how a community actually operates day to day.

The master deed or lease outlines who owns what and identifies the shared spaces. Recorded bylaws must explain in detail how the community will be administered, including whether it’s led by a board or an individual administrator, must specify the distinct powers, duties, and limitations of each. The bylaws should clarify that the board is responsible for governance, policy, and oversight, and that an individual administrator, if appointed, is responsible for carrying out the board’s directives and managing daily operations within the limits set by the board. Rules and regulations cover the practical details residents care about most, like parking policies, amenity use, and quiet hours.

When these documents are clear and well-written, boards and owners have a reliable roadmap for making decisions. Without them, it can be harder to apply the Act or address the unique challenges of a property. Reviewing and updating the documents over time keeps them aligned with the community’s needs and helps boards stay effective as those needs change.
 

Rights and responsibilities under the Act

The Tennessee Horizontal Property Act spells out what both owners and board members can expect, as well as what’s expected of them.

• Owner rights: Owners have the right to enjoy their unit, share in the use of common spaces, and take part in community decisions through voting. They can also expect fair treatment under the association’s rules and have access to certain association records.
   
• Owner responsibilities: Owners are expected to pay assessments on time, follow the community’s rules, and care for their unit while also contributing to the upkeep of shared property.
   
• Board member rights: Board members, elected by the community, have the authority to make decisions that guide the association, as specifically provided in the recorded bylaws. The bylaws should define the scope of board authority, including limitations on decision-making and the requirement to act collectively. Board members also have the ability to lean on governing documents and, when needed, property management professionals for support.
   
• Board member responsibilities: Board members take on duties like setting budgets, collecting assessments, maintaining common areas, and making decisions with the best interests of the whole community in mind. The recorded bylaws should specify that board members must act within the authority granted by the bylaws, avoid exceeding their powers, and are not personally liable for actions taken in good faith within the scope of their defined responsibilities. The bylaws should also clarify the distinction between board governance and the operational duties of any individual administrator, to prevent confusion and limit board liability.

Together, these rights and responsibilities form the foundation for how Horizontal Property Regimes operate successfully throughout Tennessee.
 

Conflict resolution and enforcement of rules

Disagreements happen in any community, and the Tennessee Horizontal Property Act gives associations a framework for addressing them. Most boards enforce rules through reminders, warnings, or fines based on what the governing documents allow. Owners are typically given a chance to share their side before any penalties are applied.

Sometimes, disputes go beyond rule violations and involve differences between neighbors or even between owners and the board. In these cases, mediation or arbitration can be useful tools to reach a solution without escalating the conflict. Keeping clear records of violations, communications, and board actions supports consistency and credibility.

Property management companies can also help by guiding boards through the enforcement process. With professional support, boards can apply the Act and their governing documents in a consistent way that protects both the property and the community.
 

How FirstService Residential can help

FirstService Residential is the property management company of choice for communities across Tennessee. We partner with associations of every size to simplify daily operations, support compliance with state laws like the Tennessee Horizontal Property Act, and create a positive experience for residents.

Our local teams bring the expertise, resources, and personal service your board needs to protect property values and keep your community running smoothly. Backed by the strength of our professional scale, we deliver tailored solutions designed to fit your community’s unique goals.

Contact us today to learn more about how FirstService Residential can support your Tennessee community.