Key Takeaways
- Tennessee REQUIRES sellers to complete the Residential Property Condition Disclosure per state law
- Sellers must act in good faith when filling out the disclosure form
- The disclosure covers property condition, systems, environmental issues, and more
- Exemptions include public auctions and owners who haven't lived in the property for 3+ years
- Lead-based paint disclosure IS required for pre-1978 homes (federal law)
Tennessee Property Disclosure Requirements
Tennessee requires sellers to disclose property conditions to buyers in residential transactions.
Mandatory Seller Disclosure
Tennessee law requires sellers to complete the Tennessee Residential Property Condition Disclosure or another form that complies with state law.
Key Requirements
| Requirement | Details |
|---|---|
| Form required | Tennessee Residential Property Condition Disclosure |
| When provided | Before or at time of contract |
| Who completes | Seller |
| Standard | Must act in good faith |
Important: Tennessee requires sellers to act in good faith in filling out the disclosure form. This means honest, accurate answers to the best of the seller's knowledge.
What Must Be Disclosed
The Tennessee disclosure form covers numerous categories:
Property Condition Areas
| Category | Examples |
|---|---|
| Structural | Foundation, roof, walls, floors |
| Systems | HVAC, electrical, plumbing |
| Water | Wells, septic, water quality |
| Environmental | Flooding, drainage, hazards |
| Appliances | Included items and condition |
| Legal | Easements, encroachments, zoning |
Specific Disclosures
| Item | What to Disclose |
|---|---|
| Water damage | Past or present water intrusion |
| Foundation issues | Cracks, settling, repairs |
| Roof condition | Age, leaks, repairs |
| HVAC | Age, condition, recent service |
| Pest damage | Termites, wood-destroying insects |
| Environmental hazards | Lead, asbestos, radon, mold |
Exemptions from Disclosure
Certain sellers are exempt from the disclosure requirement:
Tennessee Exemptions
| Exemption | Description |
|---|---|
| Public auction | Property sold at public auction |
| Non-resident owner | Owner hasn't lived in the property within prior 3 years |
| Court-ordered sales | Foreclosures, estate sales |
| New construction | Builder-sold properties may have different requirements |
Agent Disclosure Duties
Adverse Facts (T.C.A. Section 62-13-403)
Real estate agents have separate disclosure duties under the Tennessee Real Estate Broker License Act:
| Agent Duty | Description |
|---|---|
| Disclose adverse facts | Known conditions affecting structural integrity or health |
| Actual knowledge | Must disclose facts the agent actually knows |
| All parties | Disclosure required to ALL parties |
What are Adverse Facts?
Both the disclosure law and License Act define adverse facts as:
- Conditions significantly reducing structural integrity of improvements
- Conditions presenting significant health risk to occupants
- Conditions generally recognized by competent agents
Stigmatized Property
Tennessee law addresses "psychologically impacted" property:
| Type | Disclosure Required? |
|---|---|
| Deaths on property | Generally not required |
| Violent crimes | Generally not required |
| Nearby sex offenders | Generally not required |
| Paranormal activity | Generally not required |
Note: If a buyer directly asks about stigmatized property issues and the agent knows, they should respond honestly.
Federal Lead-Based Paint Disclosure
For homes built before 1978, federal law requires:
| Requirement | Details |
|---|---|
| Disclosure | Known lead-based paint hazards |
| Pamphlet | EPA pamphlet "Protect Your Family From Lead" |
| Inspection period | Buyer has 10 days to inspect (waivable) |
| Form | Lead-Based Paint Disclosure form |
Critical: Lead-based paint disclosure is REQUIRED by federal law regardless of state law.
Which statement is TRUE about Tennessee property disclosure requirements?
Which of the following is EXEMPT from Tennessee's seller disclosure requirements?
Under Tennessee law, which of the following MUST be disclosed by real estate agents?