Transactional Funding in Nashville

Budget the realty transfer tax twice. Tennessee charges $0.37 per $100, calculated on the greater of the consideration or the value of the property, and the statute puts it on the grantee. A double close is two conveyances, so on a $300,000 A-to-B leg that is $1,110 out of your side, and your end buyer pays their own on the B-to-C. There is a second tax to know about: the indebtedness tax, 11.5 cents per $100 of debt with the first $2,000 exempt, owed by the debtor whenever a note is recorded. On a $300,000 recorded note that runs about $343, and every recorded debt instrument has to carry the legend stating the maximum principal indebtedness for Tennessee recording tax purposes. Price both lines into the spread before you sign, and have the exact figures confirmed on your settlement statement.

$5.00 a page, a $10.00 minimum, plus a $2.00 data processing fee on each document. The Register of Deeds puts deeds and deeds of trust in the "all other documents" bucket, so a two-page warranty deed is the $10.00 minimum plus the $2.00 data processing fee, $12.00 in total, and a three-page deed is 3 x $5.00 = $15.00 plus $2.00, so $17.00. Assignments and releases sit on their own tier: $10.00 for one or two pages covering one assignment or one lien released, plus the $2.00 data processing fee, then $5.00 for each additional page and $5.00 for each additional assignment or lien. Add the $1.00 probate fee, which is collected only when state tax is paid. What is absent from the schedule matters as much as what is on it: Davidson adds no county transfer tax, documentary stamp, or local surcharge on top of the state rates, so the page fees on two deeds and a note are tens of dollars against hundreds or thousands in state tax. Davidson e-records through Simplifile, eRecording Partners Network, CSC and Indecomm, each e-filed document needs a Certificate of Authenticity attached, and payment runs by ACH. The office is open Monday to Friday, 8:00 a.m. to 4:30 p.m., and publishes no cutoff time or turnaround commitment, so ask them directly if your closing depends on a recording date. The fee page cites TCA 8-21-1001 and was last updated August 27, 2021, so confirm the current figures before you price a deal off them.

Tennessee's good funds statute does not allow it. The Residential Closing Funds Distribution Act of 2005, codified at TCA 47-32-101 through 47-32-107 and effective September 1, 2005, bars a settlement agent from disbursing any funds from an escrow or settlement account until the loan funds have been received, all additional funds needed to fully fund the transaction have been provided, and all documents required to complete the transaction have been executed and are suitable for recording. Additional funds over $1,000 have to arrive in one of the seven statutory good funds forms: cash, wired funds, a cashier's check, a check issued by the State of Tennessee or a political subdivision, a teller's or other official check issued by a financial institution and drawn on or payable through a financial institution in the settlement agent's Federal Reserve check processing region, a Farm Credit Act check, or a licensed broker's escrow check no larger than the earnest money collected. Business purpose is not an exit from it. The act reaches real estate containing not more than four residential dwelling units, regardless of the purpose of such dwellings, along with residentially zoned vacant lots and agricultural land, and it defines a mortgage loan as one secured by a mortgage and intended for any purpose. It does not reach commercial real estate. That is the reason the A-to-B leg needs separately sourced funds in escrow rather than a float against the incoming B-to-C wire. Non-compliance does not invalidate the loan documents, but it exposes the settlement agent to actual damages, attorney fees, and the greater of $1,000 or double the interest payable for the first 60 days after closing. This is a statewide Tennessee rule, not a Davidson County one. Confirm how your title company handles it before you set a closing date.

We cannot tell you, and a Tennessee real estate attorney should. The one statute we can point to is TCA 62-13-104, which exempts an owner of real estate acting with respect to property they own from the broker licensing requirements. The carve-back is the part that matters to a wholesaler: the exemption does not cover acts performed as a vocation, or where compensation is tied to the value of the property. Whether a given assignment or double-close structure sits inside or outside that line depends on facts we are not in a position to judge, and we could not source current Tennessee Real Estate Commission guidance on wholesaling. Get your contract, your assignment language, and your disclosures reviewed by Tennessee counsel before you run a program on them. We are a lender, not your attorney.

Two written disclosures, and one of them has to happen before the purchase contract is executed. Tennessee Public Chapter 72 (2025), codified at TCA 66-4-401 through 66-4-403, was approved on March 25, 2025 and took effect on becoming law. It defines your equitable interest as the right to benefit or profit from the property after you enter a purchase contract with the seller but before legal title has transferred, and it treats you as wholesaling when you assign that interest to a subsequent purchaser for a higher price than you paid. Wholesaling is permitted if you disclose in writing, first, to the potential subsequent purchaser or assignee, the nature of your equitable interest, and second, to the seller, your intent to market that interest, given prior to execution of the contract, plus the effective date of any assignment at least three business days before that effective date, where the contract allows assignment. Those disclosures must be in bold, large font print and included in the written agreement, so a verbal heads-up does not satisfy the statute. An action for failing to make them must be commenced within two years after the purchase and sale contract is executed. This is a disclosure duty, and it applies to how you papered the deal whether you exit by assignment or by double close. Have Tennessee counsel draft the language into your contract. We are a lender, not your attorney.

The height envelope got shorter and the entitlement got easier, both at the end of 2025. BL2025-1006 passed on December 16, 2025 and took effect December 26, 2025, with the height table effective February 27, 2026. It cut the maximum from 3 stories to 2.5 across the single-family and two-family bulk table, capped height to the eave at 24 feet and to the ridge at 35 feet, and kept the tall-skinny ratio at 1.0 horizontal to 1.5 vertical for each of two detached units on one lot. Inside the loop bounded by I-65, I-40 and I-24, a 3-story, 45-foot envelope still applies. Running the other way, the old five-part conditions test for two-family was deleted in full, so two-family is now permitted on any lot legally created under state law or within an approved final plat that meets the district minimum lot size. Note the RS districts are single-family only. If your buyer priced the lot off a 3-story pro forma outside the loop, the yield changed, and that is worth confirming with them before you go under contract on the B-to-C.

No. A Davidson County short-term rental permit dies at closing. The ordinance text is explicit that a permit shall not be transferred or assigned to another individual, person, entity, or address, and Tennessee's own preemption statute at TCA 13-7-601 and following ends grandfathered status on sale or transfer. On top of that, new not-owner-occupied permits are not available in AR2A, R, RS or RM zoning, which is the entire conventional residential stack. They issue only as a use permitted with conditions in mixed-use, office, commercial, downtown and shopping-center districts. So if you are marketing a residentially zoned house on the seller's short-term rental income, the buyer will not inherit that income or the permit. Sell the property, not the pro forma, and send your buyer to Metro Codes before they underwrite the exit.

At least 20 days from the first publication, and the date is knowable in advance. Tennessee forecloses by non-judicial power of sale under TCA 35-5-101 and following. The notice runs three times in a newspaper in the county where the property sits, with the first publication at least 20 days before the sale, and a copy goes to the debtor and any co-debtor by registered or certified mail on or before that first publication. That publication window is your working time to confirm an end buyer and get funding lined up against a date that is already set. Sales can be postponed within one year without republishing, announced at each scheduled date, with 10 days of mailed notice if the postponement runs more than 30 days, so verify the current sale date rather than the one you first read. Tennessee also has a two-year redemption right under TCA 66-8-101 that can be expressly waived in the deed of trust. Whether it was waived on a specific property is a title question. Have your closing team answer it in writing before you commit to a resale.

No down payment. We fund up to 100% of the purchase on the A-to-B leg. That is the whole point of the product: you take title and convey it the same day on a simultaneous close, and the B-to-C proceeds retire our money. What you do still need is closing cash. Tennessee puts the realty transfer tax on the grantee at $0.37 per $100, so on a $300,000 A-to-B leg that is $1,110 out of your side, and your end buyer pays their own on the second conveyance. Price that into the spread. Subject to underwriting.

A flat fee, not a rate. Because the money is out for a matter of hours, quoting an annualized interest rate would tell you nothing useful, so the pricing is a stated fee on the amount funded. Underwriting is deliberately thin: no credit check and no appraisal, because we are not holding the asset. What we do need is a real end buyer with real funds and a settlement agent who has run a double close before. Add the Tennessee transfer and recording taxes to the fee when you model the spread. Subject to underwriting.

Days, not weeks. This is same-day money for a simultaneous close, not a bridge, so both legs are expected to record together. If your end buyer needs time to arrange financing, or the B-to-C is a week out, transactional funding is the wrong tool and a short-term bridge is the right one. Tell us the closing date on both legs before we quote it, because the calendar is the product. Subject to underwriting.