Tennessee Senate Bill SB0909

Tennessee 2025-2026 Regular Session

• Introduced: 2/5/25
• Engrossed: 2/24/25
• Enrolled: 3/18/25
• Passed: 3/25/25
• Chaptered: 4/8/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 47 and Title 66, relative to wholesaling real property.

Summary

SB0909 creates a new part in Tennessee law governing the wholesaling of real property. It defines “equitable interest” as the buyer’s contractual right to benefit from property before legal title transfers, and it defines wholesaling as a buyer assigning that equitable interest to a later purchaser for a higher price. The bill is aimed at transactions where a buyer contracts to purchase real estate and then markets or assigns that contract position before closing. The bill allows this practice only if the buyer provides written disclosures. The buyer must disclose to a potential assignee the nature of the equitable interest, and must disclose to the seller the intent to market the equitable interest before execution of the contract and the effective date of any assignment at least three business days before the assignment takes effect, if the contract permits assignment. The required disclosures must be in bold, large font and included in the written agreement. The bill also sets a two-year limitations period for actions alleging violations and states that it applies only to real property transactions.

Impact

SB0909 adds new statutory requirements in Title 66 for real estate wholesaling and creates enforceable disclosure obligations for buyers who assign purchase contracts. It affects buyers, sellers, and subsequent purchasers in real property transactions by requiring advance written notice and by exposing violators to civil action within a two-year window. Although the bill caption references Title 47 as well, the operative provisions in the text primarily amend Title 66 and regulate contract assignment practices in real estate.

Sentiment

The available voting history suggests broad support for the bill. It passed the Senate Commerce and Labor Committee unanimously 7-0 and later passed a floor motion to adopt 33-0, indicating little recorded opposition in the legislative process. No committee transcript is available, but the votes reflect a generally favorable view of the measure.

Contention

The main policy issue underlying the bill is the regulation of real estate wholesaling, a practice that can be controversial because it involves assigning purchase contracts for profit before closing. Supporters likely viewed the bill as a consumer-protection and transparency measure, while any potential concerns would center on whether the disclosure rules are sufficient or whether they could burden legitimate assignment-based transactions. The text itself does not show recorded dissent, and the unanimous votes suggest no major contention was documented in the available history.