Bill > HB0137

This bill amends Tennessee property transaction law to give purchasers or borrowers the exclusive right to select a settlement agent in real estate transactions, with some important protections and limitations. Under the new law, a purchaser can choose a settlement agent to handle escrow services, act as a title insurance agency, and perform title clearance functions, regardless of the seller's preferences. The bill specifically prohibits sellers from requiring the use of a particular settlement agent and prevents any party from waiving these new rights. Additionally, the bill allows sellers to retain their own licensed attorney to represent their interests during the transaction, but limits the attorney's role to specific tasks like deed preparation, fee negotiation, and legal advice. The settlement agent is forbidden from collecting fees from a represented seller without the written consent of the seller's attorney, except for reasonable title-clearing charges. The law will take effect on July 1, 2025, and aims to provide more transparency and choice in real estate transactions by giving purchasers more control over the settlement process.