Bill > SB0394

This bill modifies Tennessee real estate transaction rules by giving purchasers or borrowers the exclusive right to select a settlement agent for their property transaction, with several key provisions. The settlement agent, which could be a title insurance agency, will have specific authorized functions including providing escrow services, clearing property title, and producing necessary documentation according to the title insurance company's standards. Sellers are prohibited from requiring or conditioning the transaction on using a specific settlement agent, and these provisions cannot be waived by any party. However, sellers can retain a licensed attorney to represent their interests, with the attorney's role limited to specific activities like deed preparation, fee negotiation, document review, and legal advice related to the closing process. The bill also includes a notable consumer protection measure: if a seller is represented by an attorney, the settlement agent cannot collect transaction-related fees from the seller without the attorney's written consent. The law will take effect on July 1, 2025, and applies to real property transactions in Tennessee, aiming to provide more transparency and consumer choice in the property transaction process.

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https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB0394&ga=114