What to check before you make an offer

Buying a Home With an HOA or Planned Unit Development in Tennessee

Many homes in Manchester and Coffee County sit in a neighborhood or attached community with a homeowners association. Some are in a planned unit development. The shared rules and fees can be a good fit when you want exterior upkeep handled for you, and they can also surprise a buyer who has never lived with them. This guide covers what Tennessee law says sellers must share, what to read before you are under contract, how dues fit your budget and how lenders look at these projects.

This is general information from public sources, not legal or lending advice. Association documents and loan rules change, so confirm the details with the association, your lender and a Tennessee attorney.

What an HOA and a PUD are

A homeowners association is the group that runs the common areas and rules for a development. You usually join when you buy, and you pay assessments, often called HOA dues.

Tennessee law defines a planned unit development, or PUD, in TCA 66 5 213. It is an area of land controlled by one or more landowners and developed under a unified plan for homes, and sometimes other uses, where the plan does not match the usual lot size, density or open space rules. The same statute defines restrictive covenants as written limits on how the property can be used, such as building size, exterior materials, activities on the lot or future subdivision. Bylaws are the rules for how the association runs, including the board, voting and meetings.

A condominium is different under Tennessee's Horizontal Property Act. TCA 66 27 102 defines a condominium as ownership of single units in a multiple unit structure or structures with common elements. You own your unit, and you share ownership of the common elements such as the land, main walls, roofs, halls and other shared parts. Some projects use private elements, where you own the lot under your unit in fee simple, and a townhouse corporation of which all co owners are members. Under TCA 66 27 103, a horizontal property regime is created when a master deed or lease, or a plat, is recorded. The same section says a planned unit development under that part needs a declaration, bylaws, a plat showing private and common elements, a townhouse corporation, a charter and an attorney's opinion.

Fannie Mae describes a PUD as a project where common property is owned and maintained by an HOA for the unit owners, and each owner holds title to a residential lot and structure plus an interest in the association. If a development is filed as a horizontal property regime, Fannie Mae generally treats it as a condo unless the local statute allows an HPR to be created as a PUD and the legal documents say the project is a PUD. Ask your lender how the project you like is classified for the loan.

What Tennessee sellers must give you

Under TCA 66 5 213, before entering a contract the owner must disclose, in the contract or in a signed writing, if the property is in a planned unit development. On request, the owner must make available the restrictive covenants, homeowner bylaws and master deed. Ask for those documents early, not after your inspection and financing deadlines are tight.

My Tennessee seller disclosure guide covers the broader disclosure statement, and my townhomes and condos guide shows recent Coffee County attached sales and HOA fees. Subdivision names in the MLS do not by themselves tell you the covenants or fees; my Manchester subdivisions guide explains that check.

What to read in the documents

When the packet arrives, read at least:

• Fees and special assessments. What is the regular dues amount, how often is it billed, and are any special assessments planned or pending?
• What the fee covers. Grounds, exterior, trash, insurance, amenities or only a few of those.
• Rules that affect daily life. Pets, parking, fences, sheds, exterior paint, satellite dishes, short term rentals and quiet hours.
• Rental rules. Whether long term or short term rentals are allowed, and any caps.
• Transfer and capital fees. One time amounts due when ownership changes, and who pays them under the documents or the contract.
• Insurance. What the master policy covers and what you must insure yourself.
• Reserves and budget. Whether the association has a reserve study or recent financial statements your lender may want.
• Litigation. Whether the association is in a lawsuit that could affect assessments or marketability.

If anything is unclear, ask the listing agent or the association manager in writing, and have your attorney review the packet before you waive contingencies. My contract contingencies guide explains how inspection and financing deadlines work.

Dues, your budget and closing

The Consumer Financial Protection Bureau (CFPB) says condominium or homeowners association dues are usually paid directly to the association, not as part of your mortgage payment to the servicer. The CFPB also notes that dues can range from a few hundred dollars a month to more than one thousand dollars a month, so add them when you decide what you can afford. On rare occasions a servicer may put HOA dues in escrow if you ask.

At closing, the CFPB Mortgage Closing Checklist tells you to ask how to pay any homeowners association dues and who to call with questions after closing. Dues are often prorated between buyer and seller based on the closing date, the same way property taxes are. My property tax proration guide and buyer closing costs guide cover those pieces. Fannie Mae also allows a seller to pay the buyer's HOA assessments for no more than 12 months after closing as a financing concession, within the overall concession limits; my seller concessions guide compares the rules by loan type.

Local HOA fees on recent attached sales

For townhomes and condos that closed in Coffee County from November 1, 2025 through October 31, 2026, Realtracs MLS showed an owners association on all 28 attached sales. Converted to a monthly amount, the median fee was $125, and fees ranged from $40 to $305 a month. Most were billed monthly. Grounds maintenance was the most common item listed as included. Thirteen of those listings also showed an association transfer fee between $200 and $250. These fields are entered by the listing agent, so confirm every number in the association documents for the home you want. Full tables and the About these numbers notes are on my townhomes and condos page.

How lenders look at PUDs and condos

Lenders care about the project, not only about your credit. Fannie Mae says project risks include the financial strength of the association, the condition of the project, limits on how you use common areas, litigation, insurance gaps and rules that could block a cure of a default, such as a right of first refusal.

For a PUD under Fannie Mae rules, membership in the HOA must be automatic and cannot be dropped, assessments must be mandatory, common property must be owned and maintained by the HOA, and the unit must not be legally created as a condo or cooperative. Zoning that merely labels a tract a PUD is not enough if there is no common property and no required association. Fannie Mae generally waives a full project review for units in new and established PUD projects, with limited exceptions such as certain manufactured home arrangements, but basic eligibility, insurance and appraisal rules still apply.

Condo projects often need a fuller review. If you plan to use an FHA loan on a condo, ask your lender early whether the project is eligible for FHA financing. USDA says its guaranteed loan can be used for detached, attached and condo homes used as a permanent residence that do not produce income, when the buyer and the address qualify. See my FHA loans guide, USDA loans guide and conventional loans guide.

Insurance and flood coverage

Ask what the association's master policy covers and what you need on your own policy. FloodSmart says any homeowner in a community that participates in the National Flood Insurance Program is eligible for a flood policy, including condominium and townhouse owners, and that most homeowners insurance does not cover flood. Look up the address on the FEMA flood map; my flood zones guide and homeowners insurance guide walk through the steps.

A buyer checklist for HOA and PUD homes

• Confirm whether the property is in a PUD or condo and request the covenants, bylaws and master deed under TCA 66 5 213
• Read the rules on fees, pets, parking, rentals and exterior changes before your contingency deadlines
• Add the monthly dues and any transfer fee to your budget and your Loan Estimate conversation
• Ask your lender how the project is classified and whether your loan type needs a project review or condo approval
• Confirm insurance: master policy, your HO 6 or dwelling coverage, and flood if needed
• Still hire a home inspector; shared walls and an association do not replace an inspection. See my home inspection guide
• At closing, ask how dues are paid going forward and keep the association contact information

How I help

I help you request the association documents early, flag rules that conflict with how you want to live, compare dues against what they cover and coordinate with your lender on project eligibility. I also compare each HOA or PUD listing against other Coffee County options so you know whether the fee and the rules are a fair trade for the home.

Keep reading:

• Townhomes and condos in Coffee County
• Tennessee seller disclosure explained
• Manchester TN subdivisions
• Home buyer checklist
• Buyer closing costs in Tennessee
• FHA loans for Tennessee buyers
• All Manchester guides

About these numbers: the HOA fee counts come from Realtracs MLS closed residential townhome and condo sales in Coffee County, November 1, 2025 through October 31, 2026, using the attached property types on my townhomes page (townhouse, flat condo, other condo, HPR attached and zero lot line attached). Data as of November 1, 2026. Fees billed quarterly, twice a year or yearly were converted to a monthly amount. Fields are entered by listing agents and are not a substitute for the association documents.

Fair housing note: I work with every buyer and seller and follow the same steps for everyone.

This guide is general information from public sources, not legal or lending advice. Confirm the documents, fees and loan rules for the home you are buying with the association, your lender and a Tennessee attorney.

Looking at a home with an HOA?

I can help you request the documents, read the rules with you and check the financing early. Call or text me at (615) 497 1658, or request my buyer guide below.

Common questions

Matt Sargent is a Tennessee licensed affiliate broker with Keller Williams who helps buyers and sellers in Manchester and Coffee County. Call (615) 497 1658 or send a message.