Bill > SB0394

This bill, concerning real property transactions in Tennessee, introduces new provisions that grant purchasers or borrowers the authority to select the settlement agent, which is the entity responsible for handling the closing of a real estate deal, including tasks like title insurance and document recording. It also clarifies that if two title insurance agencies agree to share premiums, commissions, or other fees, they must provide written notice to both the buyer and seller and obtain their signed consent, while also prohibiting one agency from assuming liability for a policy it did not issue. Furthermore, the bill states that the settlement agency chosen by the purchaser or borrower on the contract will be the exclusive issuing title insurance agency, unless a mortgage lender, broker, or servicer has a right of approval, and this provision cannot be waived or modified, applying to most residential property transactions within the state but excluding the initial sale of new construction with more than four units and auction sales.