QUESTION: I have seen four different definitions of a PUD in four different publications. I have title attorneys and real estate attorneys arguing over what is and what is not a PUD and whether this form needs to completed. What is exactly is the definition of a PUD? What if the seller does not know if it is or is not a PUD?

ANSWER: The State of Tennessee recently passed a new law that went into effect on July 1, 2009, concerning planned unit developments, or PUDs. The new statute provides a definition of a PUD. It also requires that the seller disclose whether the property is located within a PUD:

Section 66-5-2__.
(a) As used in this section, unless the context otherwise requires:

(1) “Bylaws” mean guidelines for the operation of a homeowner’s association which define the duties of the various offices of the board of directors, the terms of the directors, the membership’s voting rights, required meetings and notices of meetings, and the principal office of the association, as well as other specific items that are necessary to run the homeowner’s association as a business;

(2) “Planned unit development (PUD)” means an area of land, controlled by one (1) or more landowners, to be developed under unified control or unified plan of development for a number of dwelling units, commercial, educational, recreational or industrial uses, or any combination of the foregoing, the plan for which does not correspond in lot size, bulk or type of use, density, lot coverage, open space, or other restrictions to the existing land use regulations; and

(3) “Restrictive covenant” means any written provision that places limitations or conditions on some aspect of use of the property, such as size, location or height of structures, materials to be used in structure exterior, activities carried out on the property, or restrictions on future subdivision or land development.

(b) In addition to any other disclosures required in this part with regard to transfers described in 66-5-201, the owner of the residential property shall, prior to entering a contract with a buyer, disclose in the contract itself or in writing, including acknowledgement, if the property is located in a PUD, and make available to the buyer a copy of the development’s restrictive covenants, homeowner bylaws, and master deed upon request.

SECTION 2. This act shall take effect July 1, 2009, the public welfare requiring it.

The agent’s responsibility is to make the seller aware of this new law. It is NOT the agent’s responsibility to determine whether the seller’s home is in a PUD. This is for the seller to determine.

We would recommend that the seller consult with his own attorney. The new law is found at Public Chapter 112, Senate Bill 0324, and House Bill 0380.

[SOURCE: TAR's Legal & Ethics Hot Line Attorneys]

The best home sales statistics for this year came in June.  Sales were up to the highest level since September of 2008.  In June, the Southeast Tennessee and the Northwest Georgia area saw the sale of 553 residential units, a 14.3% increase compared to the previous month’s sales.  It is hard to say that the market has recovered, but the lower home sales compared to a year ago seem to be narrowing.  Foreclosures are still happening, which could affect home prices in some area, but as the President of the Chattanooga MLS said, “I think that we’re seeing the start of the proverbial ‘perfect storm’ of circumstances – improved economic environment, savvy and motivated buyers, and dedicated, hard-working realtors who are making things happen. I continue to be thankful that the Chattanooga marketplace never mirrored the activity that took place in most of the rest of the U.S. in the last several years. Like the President of the Chattanooga Association of Realtors, I’m cautiously optimistic, but I also believe that we’ve turned a very big corner.”  The median home price is only down 3% from this time last year, but up 6.3% from May.  In 2009 the number of days that homes are on the market has increased.  Experts say that it is due mostly to the continuing pressures in the financial markets as credit remains tight for even the most qualified of buyers.

Yes, but it may take 3 years – just like prognosticators are saying about the stock market – to come back to early 2008 levels. Nationally, the median house price has dropped 14% from a year ago, but has stabilized. “It is safe to say we have reached the point where prices are justified by the fundamentals of the economy and may even represent an undervaluation” says chief economist Lawrence Yun of the National Association of Realtors. The Wall Street Journals’ headline Saturday, August 1, proclaimed the end of the national housing slump and the gradual rise of home prices and activity.

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A milestone in a planned 30-year international phaseout of environmentally sensitive refrigerants used in residential air conditioners and heat pumps occurs in six months. After January 1, 2010, manufacturers of air conditioners and heat pumps can no longer produce equipment that uses the refrigerant R-22, which is commonly know by the brand name Freon®.

Because of this pending deadline, there is a lot of misunderstanding among contractors and homeowners about the future status of systems currently in homes that use R-22. Most affected will be homeowners needing to repair a malfunctioning system or contemplating replacement of an older system. Before making a decision on the remedial options available to them, homeowners should be aware that contrary to the impressions they may have been given by HVAC salesman or service technicians, it will still be possible to service and repair many older R-22 systems for years to come.

While the phaseout requirements only allow refrigerant manufacturers to produce R-22 for use in new equipment until 2010, they can continue production of a regulated amount of R-22 until 2020 for use in the servicing and repair of existing R-22 equipment. It is not until 2020 that the production of R-22 will cease and subsequent servicing of R-22 based systems will have to rely solely on stockpiled or reclaimed and recycled refrigerant.

In anticipation of this phaseout, some manufacturers began manufacturing equipment that uses a new type of refrigerant several years ago. But given the extended phaseout schedule, it is expected that R-22 should continue to be available for servicing for all equipment that requires R-22 for another 10-15 years, which will at least match the typical maximum service life of most air conditioning and heat pump systems. So while manufacturers will not be able to make equipment that uses R-22 after January 1, 2010, the refrigerant will still be available in the near future for servicing of existing equipment.

Between the R-22 phaseout and recently implemented new minimum energy efficiency requirements, however, salespeople and service technicians will be pushing for all new equipment whenever significant repair needs exist or the equipment is old. Ultimately, the best approach in each situation though, will depend on a number of factors including: the cost of repair versus replacement, the age and efficiency of your equipment, you future occupancy plans, and your approach to protecting the environment.

To help address questions you may have about the phase out of R-22, review information the U.S. Environmental Protection Agency and Heating, Refrigeration and air Conditioning Institute of Canada have posted on their websites. Particularly helpful may be a listing of FAQ for consumers issued by EPA.

Remember, these tips are only general guidelines. Since each situation is different, contact a professional if you have questions about a specific issue. More home safety and maintenance information is available online at www.housemaster.com. Copyright © DBR Franchising, LLC.