Bill > HB0781

This bill adds new provisions to Tennessee law regarding wholesaling real property, which is a practice where a buyer enters into a contract to purchase property and then assigns their contractual rights to another buyer at a higher price before actually purchasing the property. Specifically, the bill defines "equitable interest" as the right of a buyer to benefit from real property after entering a purchase contract but before receiving legal title. The bill requires buyers engaged in wholesaling to make specific written disclosures to both the original seller and potential subsequent purchasers, including details about their equitable interest in the property and their intent to market the property before finalizing the purchase. These disclosures must be in bold, large font and included in the written agreement. The buyer must disclose their intent to assign the contract at least three business days before the assignment, if the contract allows such assignment. The bill also establishes that any legal action for violating these requirements must be commenced within two years of the original property purchase contract. The new law will apply only to real property transactions and will take effect immediately upon becoming law.

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https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB0781&ga=114