Selling a home in the Chattanooga area

Transfer tax

Tennessee charges a realty transfer tax of $0.37 per $100 when a deed is recorded, based on the greater of the price paid or the property's value. By law the grantee (the buyer) is responsible for paying it, although buyer and seller can agree otherwise in the contract. The tax is collected by the county register of deeds.

Local add-ons: None noted in the Department of Revenue's tax manual; the county register of deeds collects the state tax at recording.

Source: Tennessee Department of Revenue, Realty Transfer and Recordation Tax Manual (March 2023)

Seller disclosure

Yes. The Tennessee Residential Property Disclosure Act (Tenn. Code Ann. 66-5-201 and following) requires sellers of homes with one to four units to give the buyer a residential property disclosure statement listing known material defects before the purchase contract is accepted. A seller may give an "as is" disclaimer statement instead only if the buyer waives the disclosure, and some transfers are exempt. This summary comes from the Tennessee REALTORS form that restates the Act, since the official code site is not freely accessible.

Source: Tennessee REALTORS, Form RF203 summary of the Tennessee Residential Property Disclosure Act (secondary source)

Who handles the closing

Tennessee closings are customarily handled by title companies, with attorneys handling some. An attorney is not customarily required. This is based on a title insurer's industry summary, not an official state page.

Source: Stewart Title, State Laws and Customs Toolkit (secondary source)

Also worth knowing

A seller may be exempt from the disclosure form in some cases, such as court-ordered sales, some foreclosures, new construction with a written warranty, or when the owner has not lived in the home at any time in the prior 3 years. Sellers must also tell the buyer, at or before closing, about any changes since the original disclosure.

Source: Tennessee REALTORS, Form RF203 summary of the Tennessee Residential Property Disclosure Act (secondary source)

Also worth knowing

On the first sale of a newly built home, the seller must disclose the amount of any impact fees or adequate facility taxes that were paid.

Source: Tennessee REALTORS, Form RF203 summary of the Tennessee Residential Property Disclosure Act (secondary source)

Also worth knowing

Tennessee law does not require sellers to disclose that a home was the site of a homicide, suicide or felony, or that an occupant had a disease not spread by living in the home, when it had no effect on the physical structure.

Source: Tennessee REALTORS, Form RF203 summary of the Tennessee Residential Property Disclosure Act (secondary source)

Checking an agent's license

Real estate agents in Tennessee are licensed by the Tennessee Real Estate Commission (Department of Commerce and Insurance). You can look up any agent before you work with them.

Tennessee Real Estate Commission (Department of Commerce and Insurance) license lookup