What is a Planned Unit Development (PUD) in Real Estate? (2023)

PUD, (planned unit development) are a unique feature in real estate. With the PUDs youown your own houseand property, in addition, you can enjoy the benefits of shared services similar to a condominium, such as swimming pools, green spaces or leisure areas. While this might seem like the perfect scenario, before buying a home in a PUD there are a few factors you should consider first.

What is a Planned Unit Development in real estate?

A PUD, or planned unit development, is a housing community that can include a variety of property types. PUDs can consist of single-family homes, townhomes or condominiums, as well as commercial real estate such as retail stores, restaurants and other businesses.

While PUDs generally comprise a single-family residential community, PUDs function more like a condominium complex. When living in a PUD, you will own your own home and the lot it sits on, but you will also enjoy amenities shared with the rest of the PUD community.

PUD services are only available to those who live in the community and are maintained by a HoA (Hosting Association). The amenities offered in PUDs often go beyond the typical amenities you would find in a standard condominium. For example, PUD benefits can include a pool, park, playgrounds, tennis courts, basketball courts, gyms, walking trails, gated entry, security, and even community stores, coffee shops, and dental offices.

Many PUDs also maintain the community's landscape and streets, including cleanliness, street lights, and potholes. To cover the cost and convenience of these services and amenities, PUD residents must pay a monthly HOA fee.

What is a Planned Unit Development (PUD) in Real Estate? (1)

What is the difference between a Planned Unit Development and an HOA?

Although the PUD and HOA provide services to their members for a monthly or quarterly fee,HOAmay or may not be optional depending on your resort or specific area. With PUDs, HOA fees are required, there is no opt-out.

Another difference between a PUD and an HOA is that PUDs often offer more extensive and extravagant services than a standard HOA. And even if you don't think you'll be using all the amenities a PUD has to offer, you'll still need to pay your HOA fees in full. Monthly PUD fees may also include charges for future upgrades or projects.

(Video) Real Estate 101: PUD | Planned Unit Developement

Compared to an HOA, PUDs tend to foster a sense of community and neighborhood. With more shared amenities than a standard HOA community, PUD communities have more opportunities to get involved and get to know each other.

What does it mean as a buyer or seller if your home is on a PUD?

If you want to buy a home on a PUD, there are some factors you should consider that differ frombuy a traditional single-family home.

For one thing, getting financing for a PUD home is a little more complex. With a PUD loan, your lender will have to take some extra steps to ensure your PUD is a good investment. Your lender will check for defaults on HOA debts by residents, if the PUD has enough reserves saved and if there is adequate insurance coverage. Your lender will also verify that your PUD is primarily residential and non-commercial.

If your lender discovers a problem with the PUD, your HOA, or finances, you may find it difficult to get a loan for the full amount. Financial problems within the PUD could indicate that home values ​​in the area may drop in the future, posing a greater risk to your lender.

Before you decide to buy a home on a PUD, you should read the fine print and details of the HOA contract and the potential cost of your monthly HOA fees. As PUDs tend to provide ample amenities, your HOA expenses will likely reflect this. Your monthly payments can be very expensive, and you should factor these costs into your overall budget.

(Video) What’s a Planned Unit Development? (PUD)

As with most places that use a homeowners association, in a PUD you are expected to follow certain community rules and regulations. As some PUD communities may be stricter than others, it's helpful to understand what requirements must be followed. For example, the PUD can regulate the external appearance of a home, including landscaping and decoration, or it can prohibit certain types of renovation.

To get a better idea of ​​the rules and decision-making process with a given PUD, meet with the head of the HOA to review notes from previous meetings and discuss potential concerns. You will be better able to discern if, in the future, when you want to make changes or remodel your home, you will encounter difficulties or obstacles with the HOA.

You may also face challenges if you decide that you would like to sell your PUD home. While PUDs may initially attract buyers due to their excellent amenities, many buyers may not be thrilled with paying high monthly HOA fees on top of their mortgage and other household expenses.

Buyers may also be afraid to buy a PUD home due to HOA rules and regulations. A home with potential restrictions and limitations can be a problem for some buyers.

What is a Planned Unit Development (PUD) in Real Estate? (2)

Is a planned development unit a good investment?

A PUD comes with many advantages. You own the house and the land it sits on, and you have access to extensive amenities that you are unlikely to find in a typical condominium, apartment complex, or traditional single-family home.

And since PUDs are their own community with a homeowners association, you can generally expect a certain level and standard of living. PUDs are tasked with maintaining and maintaining amenities, roads, shared green spaces, and landscaping. On certain PUDs, you can enjoy benefits like total lawn care or snow removal, allowing you to spend your time and energy elsewhere.

However, a PUD might not be the best investment if you're on a tight budget. HOA fees can be expensive depending on the type and scope of services. A PUD might not make sense for you, especially if you don't plan on taking advantage of most of the amenities. So even though a PUD offers everything from tennis courts to a fancy neighborhood pool, if you don't play tennis and hate swimming, a PUD might not be worth the extra expense.

(Video) Planned Unit Development (PUD): 8 Things You Should Know

And while most of the time you can do whatever you want with your property, you'll need to abide by any restrictions and rules imposed by the homeowners association. For example, you may need permission from the HOA to install a swimming pool in your backyard or apply for color approval to paint the exterior of your home. Many HOAs have guidelines on where you can park, what types of pets are allowed and how many, whether you can run a business from home, or even dictate what your lawn looks like. Part of the appeal of PUDs is that they look uniform, neat and clean. This could mean you can't have a wild, overgrown garden or be asked to remove ornaments from your lawn.

Agents compete, you win.

Of course, every PUD is different and you'll never have a problem with how you decorate, furnish or renovate your home or garden. You just want to make sure the PUD you're looking for allows for what you need and want in a home.

To help you decide if buying a home in a PUD is right for you, partner with an experienced local realtor who knows your area well. FORqualified realtorwill help you navigate the HOA fees and rules, allowing you to make an informed decision based on your needs and your budget.

upNest, which is owned by the parent companyRealtor.com, is a free service for real estate buyers and sellers to find the best real estate agents locally. The UpNest platform allows you to compare multiple agents in your area so you can compare reviews, commission rates, past sales and more.

Our network agents have been carefully vetted and often offer competitive, below-average commission rates forupNestcustomers. There is no obligation to sign up with one of the real estate agents in our network, but when you can save thousands in commissions, why not? If you're ready to get started, just enter your zip code below.

(Video) What is the Difference Between a PUD and a Condo?

Agents compete, you win.

What is considered a planned development unit?

A planned unit development, or PUD, is a group of single-family homes, sometimes condominiums or townhomes, with each owner belonging to a homeowners association (HOA).

What is the purpose of the unit's planned development?

The reasoning behind a planned unit development, or PUD, is generally to allow more flexibility in the configuration of buildings and/or uses at a site than is allowed by standard zoning laws.

(Video) Whats a PUD? What is a Planned Unit Development?


What is the difference between an HOA and a PUD? ›

In an HOA, the association owns the land while the homes or condos are owned by the homeowners. In a PUD, both the home and land are owned by the homeowner, in addition to the common area. In a PUD, landowners must adhere to PUD's rules regarding land use.

What does PUD stand for in real estate? ›

In real estate, a planned unit development refers to a small community that can contain many types of single-family homes, like townhomes or condominiums.

What is an example of PUD? ›

A planned unit development, or PUD, is a community of single-family homes, and sometimes condos or townhomes, where every homeowner belongs to a homeowners association (HOA).

What does PUD stand for in development? ›

A Planned Unit Development (PUD) is a community of homes that could look like single family residences, townhomes or condos, and can include both residential and commercial units, but on paper, they're most similar to condos.

What are 3 key attributes of a planned unit development? ›

Characteristics of a PUD

Institutional facilities for religious worship. Areas designated for shopping, which can include malls. Enrichment centers like schools, daycare centers, and office spaces. Recreation areas like restaurants and parks.

Is a PUD better than a condo? ›

The major difference between a Condominium and a PUD is that the owner of a unit within a PUD also owns the lot under the unit which has been conveyed to them as shown in the recorded Tract Map or Parcel Map-and the structure and improvements thereon.

How does PUD affect mortgage? ›

Since most HOA fees allow you to roll your property taxes & mortgage payments into one monthly payment, this means your mortgage payment will technically be higher than the amount you're initially preapproved for. The higher your PUD or HOA, the higher your monthly payment.

What are the advantages of planned unit development? ›

Potential benefits of a PUD include more efficient site design, preservation of amenities such as open space, lower costs for street construction and utility extension for the developer and lower maintenance costs for the municipality.

What type of appraisal for PUD? ›

Uniform Residential Appraisal Report

Form 70 is designed to report the results of an appraisal of a 1-unit property, including a unit in a Planned Unit Development (PUD), a Detached Condominium Unit or a 1-unit property with an accessory unit. An interior and exterior inspection of the subject property is required.

What are the three types of PUD? ›

There are three types of peptic ulcers:
  • gastric ulcers: ulcers that develop inside the stomach.
  • esophageal ulcers: ulcers that develop inside the esophagus.
  • duodenal ulcers: ulcers that develop in the upper section of the small intestines, called the duodenum.

What are the disadvantages of PUDs? ›

Zoning: From a real estate developer's perspective, one drawback to building a PUD is that the zoning laws are more complicated than standard zoning laws. The mix of residential, commercial, and recreational spaces can add extra bureaucratic steps and costs and time for completion.

What is the most common PUD? ›

[5] Duodenal ulcers are four times more common than gastric ulcers. Also, duodenal ulcers are more common in men than in the woman.

What is the difference between a subdivision and a PUD? ›

While PUD developers will likely create their own rules for individual PUD's they develop, subdivision developers do not have that ability. They must adhere to the regulations that apply in their particular municipality.

Is a PUD a good investment? ›

PUDs take care to maintain and upkeep amenities, roads, shared green spaces, and landscaping. In certain PUDs, you may enjoy benefits such as total lawn care or snow removal, allowing you to spend your time and energy elsewhere. However, a PUD may not be the best investment if you're on a tight budget.

What is another name for PUD? ›

Peptic ulcer disease (PUD) is a break in the inner lining of the stomach, the first part of the small intestine, or sometimes the lower esophagus. An ulcer in the stomach is called a gastric ulcer, while one in the first part of the intestines is a duodenal ulcer.

How are common areas managed in PUDs? ›

PUD owners receive rights and easements to use of common areas through their membership in a homeowner's association, which typically owns and controls the common areas. Some PUD projects, however, provide that the individual homeowners will own a fractional interest in the common areas.

What does PUD mean in architecture? ›

Planned unit developments are housing developments that are not subject to the standard zoning requirements, but instead work with the local government to develop criteria that will determine common areas, private areas and building guidelines.

What is PUD zoning in Florida? ›

The Planned Unit Development (PUD) zoning district is intended to provide a method by which proposals for a unique zoning district which are not provided for or allowed in the zoning districts otherwise established by this chapter may be evaluated.

What is the difference between a townhouse and a PUD? ›

People often refer to PUDs as “townhomes,” but “townhome” is just a style and not a formal zoning designation. With PUDs, the owner owns the actual lot or ground underneath the unit. With condos, the owner owns an equal and undivided interest in the entire condo project's lot (and common areas).

What is the difference between a condo townhouse and PUD? ›

The difference between an HOA-run condo townhome and a PUD townhome is who owns the land on which the structure sits. In a condo situation, the association owns the land. In a PUD, the homeowner owns the land and is free to use the land more or less when and how they wish.

What's the difference between a townhouse and a condo? ›

Generally speaking, condominium owners have an individual unit within a larger complex. Townhouse owners, alternatively, may share a wall with their neighbors, but they also own the structure of the home itself and the property's surrounding land.

Can PUD go away on its own? ›

In some cases, peptic ulcers heal without treatment, but ulcers that have not been fully treated tend to recur. Many people with ulcers (sometimes called "peptic ulcer disease") need treatment to relieve symptoms and prevent complications. Peptic ulcers form when acid erodes the lining of the digestive tract.

What are the two main causes of PUD? ›

The most common causes of peptic ulcers are infection with the bacterium Helicobacter pylori (H. pylori) and long-term use of nonsteroidal anti-inflammatory drugs (NSAIDs) such as ibuprofen (Advil, Motrin IB, others) and naproxen sodium (Aleve).

What is the most common complication observed in PUD? ›

In the United States, bleeding is the most common complication of PUD (73 percent), followed by perforation (9 percent), and obstruction (3 percent) [3].

What is the difference between PUD and clustered development? ›

Good design with a large natural vegetation buffer area around the sensitive resource can result in its protection as an asset to the PUD. Cluster development is a form of PUD that is usually exclusively residential and surrounded by large amounts of open space.

Which of the following is an advantage of condominium ownership? ›

Condos offer residents the opportunity to embrace homeownership without the hassle of yard work, snow shoveling, or home repairs. Building hallways, entryways, and community spaces are also taken care of by a cleaning or maintenance staff, so you only have to worry about your living space.

What are included in the definition of real estate? ›

Real estate is considered real property that includes land and anything permanently attached to it or built on it, whether natural or man-made. There are five main categories of real estate which include residential, commercial, industrial, raw land, and special use.

How many types of PUD are there? ›

There are two different types of peptic ulcers. They are: Gastric ulcers, which form in the lining of the stomach. Duodenal ulcers, which form in the upper small intestine.

What does Fannie Mae consider a PUD? ›

planned unit development (PUD)

A project or subdivision that consists of common property and improvements that are owned and maintained by an HOA for the benefit and use of the individual PUD unit owners.

What are the 4 types of appraisal? ›

The most common types of appraisal are:
  • straight ranking appraisals.
  • grading.
  • management by objective appraisals.
  • trait-based appraisals.
  • behaviour-based appraisals.
  • 360 reviews.
Jul 9, 2018

What is the difference between GERD and PUD? ›

If a patient complains of a burning sensation rising from the stomach into the chest or towards the neck, it is most likely due to GERD. Peptic ulcer disease, however, is typically manifested by symptoms including pain or discomfort localized in the center part of the abdomen.

Which of the following is a characteristic of a PUD? ›

Which of the following is characteristic of peptic ulcer disease (PUD)? Burning or pain in the stomach that subsides immediately after eating.

What are the main risk factors associated with the incidence of PUD? ›

According to previous studies, PUD has a strong association with cigarette smoking, advanced age, former alcohol use, obesity, and specific chronic diseases [12].

What are the cons of product development? ›

Disadvantages of Product Development Strategy
  • Riskiness. It's safer to stick with something that you and your customers already know than to venture into untested territory. ...
  • Extra cost. ...
  • Evolving markets. ...
  • Competition.

What does PUDs stand for? ›

What Is a PUD? PUD stands for Planned Urban Development and is similar to a small town that is self-contained. PUDs usually are formed in condominium buildings due to their location in urban areas; however, PUDs can also include single-family and townhome communities.

Is stress a risk factor for PUD? ›

Emotional stress and psychological factors are frequently identified as important contributors to PUD. Since the mid-20th century, stress has been considered as the main cause of PUD. Several studies suggested that psychological stress may play a role in the onset and course of PUD.

Is PUD inherited? ›

More than 20% of patients have a family history of duodenal ulcers, compared with only 5-10% in the control groups.

Is PUD life threatening? ›

In some cases, PUD can lead to life-threatening complications such as bleeding and perforation of the stomach. Early diagnosis and treatment of PUD are essential to avoid these serious complications.

What is a subdivision of a unit? ›

A unit title subdivision is the act of dividing an area of land and buildings into two or more units, such as apartments, often including property that is shared by the unit owners. Each owner gains a principal unit and may also own one or more accessory units. Why subdivide?

Who owns the land in a condo in California? ›

A condominium is like an apartment you own. You own the title ("fee simple") only to the "air space" inside the unit you purchase. If you are planning on purchasing a townhouse, by contrast, you also own the land on which the unit sits and the air space above it (up to about 500 feet).

How is a standard subdivision defined? ›

A standard subdivision is one that results in entirely divided interests; i.e., the owner of the subdivided interest owns the entire interest (lot or parcel) exclusively with no common ownership of anything associated with it.

What does ownership in a planned unit development consist of ______? ›

A PUD includes ownership of a “lot,” with common areas either owned by a homeowner's association (HOA) or collectively by all invested parties. If you buy a home within a planned unit development, you'll have to pay homeowner's association dues.

What is the meaning of planned development? ›

What is a Planned Development? A Planned Development (PD), sometimes referred to as a Planned Unit Development (PUD) is a regulatory process which promotes holistic real estate development by segmenting potential development by land use or dwelling types, by clustering uses i.e. residential v.

What is the history of planned unit development? ›

History. The conceptual origins of PUDs date back to the 1926 enactment of the Model Planning Enabling Act of 1925 by the Committee on the Regional Plan of New York, which allowed for the decisions of planning boards and commissions to precede decisions required by local zoning regulations.

What is a PUD fannie mae? ›

planned unit development (PUD)

A project or subdivision that consists of common property and improvements that are owned and maintained by an HOA for the benefit and use of the individual PUD unit owners.

What is the full form of HOA in mortgage? ›

Homeowners associations – HOAs for short – are private organizations that oversee the management of some residential communities. HOAs establish sets of rules and regulations called bylaws for those living in the community to follow.

What does condo mean in America? ›

The term 'condominium' or 'condo' is used in North America and some other English speaking areas such as Australia, to refer to a building in which individual units are separately owned, but common areas are owned jointly.

What is the difference between PID and PUD? ›

Here is the difference: A PID is an entity created by a city or county. A PUD (Public Utility District) is created by the community and operated under an elected board which may seem similar to a HOA, however it exists solely to provide electricity, water sewer and telecommunications.

What are common elements in a PUD? ›

PUDs often include many private amenities, often going above and beyond the usual pool, gym, and parks. They may include a grocery or drug store, restaurants, privately owned roads, 24-hour security, or a variety of other services. Additionally, all common area maintenance is generally taken care of.

What is the point of HOA? ›

HOAs offer key benefits that people enjoy in their communities, such as managing maintenance, maintaining the exterior and outdoor areas, and operating shared amenities like clubhouses or pools. Like most services, those organized by your HOA also come with a cost.

Are condo fees included in mortgage? ›

Condo/co-op fees or homeowners' association dues are usually paid directly to the homeowners' association (HOA) and are not included in the payment you make to your mortgage servicer. Condominiums, co-ops, and some neighborhoods may require you to join the local homeowners' association and pay dues (HOA dues).

Is homeowners insurance included in mortgage? ›

Your homeowners insurance premium is included in your mortgage payment if you have an escrow account. When you pay your mortgage, a portion of the overall payment is set aside in your escrow account to pay for your homeowners insurance and property taxes (and mortgage insurance if your lender requires it).

Do you permanently own a condo? ›

While a landlord can clear out a rental building at any time, assuming there are no complicating rent control regulations, a condo is yours forever.

Why a condo is better than a house? ›

Condo pros

Less maintenance – If you own a house, all of the upkeep of the property falls on you. If you don't want to worry about maintenance as much, a condo might be a better fit. More perks – Unlike a house, many condo communities come with amenities like a pool or playground, and features like security systems.

Why living in a condo is better? ›

A condo is usually less expensive than a free-standing house. Condos are much smaller in square footage, and maintenance is typically cheaper because you're only responsible for the interior of your home. You don't have to worry about landscaping, the roof or the exterior walls. The condo board or HOA covers those.


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