Bill > SB0909

This bill establishes new regulations for wholesaling real property in Tennessee, defining "equitable interest" as the right of a buyer to benefit from a property after entering a purchase contract but before legally acquiring the title. The bill requires buyers who engage in wholesaling (assigning their contract to a subsequent purchaser at a higher price) to make specific written disclosures. These disclosures must be in bold, large font and include: the nature of the buyer's equitable interest to the potential subsequent purchaser, and the buyer's intent to market their interest and the assignment date to the original seller, with at least three business days' notice prior to assignment. The bill provides a two-year statute of limitations for actions related to violations of these requirements and explicitly states that these provisions apply only to real property transactions. By adding these provisions to Tennessee Code Title 66, Chapter 4, the bill aims to increase transparency in real estate wholesaling practices, ensuring that both the original seller and potential subsequent purchasers are fully informed about the transaction's details and the buyer's intentions.

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https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB0909&ga=114