Question 1

Is wholesaling legal in Tennessee, and what changed in 2025?

Accepted Answer

Legal without a license, and a 2025 statute added written disclosure duties. Tennessee still does not require a broker license to assign a contract you are a genuine party to; the underlying line is TCA 62-13-104, the exemption for an owner of real estate with respect to property owned, with a carve-back where the acts are done as a vocation or for compensation tied to property value. In March 2025 Tennessee enacted a wholesaling act that requires written disclosure to the seller of an intent to assign, and disclosure of the wholesaler's equitable interest to the end buyer, with a private right of action for a party harmed by a missing disclosure. We are deliberately not publishing the section numbers, the notice period, or the limitations period here, because our sourcing on the enacted text is secondary. Have Tennessee counsel draft your disclosure language and confirm the current requirements before you use a form off the internet.

Question 2

Does Tennessee have a rule about double closings?

Accepted Answer

Not one we can find, and we will not invent a market norm for you. We looked for a Tennessee statute, a real estate commission rule, or a title-industry primary source addressing back-to-back closings or funding each leg separately, and there is none we can cite. So the honest answer is that Tennessee neither blesses nor bars the structure in any source we would publish from, and the practical constraint is whichever title company or escrow agent is handling your file and what its underwriter will insure. Ask that question first, in writing, before you tie up the A contract. If the answer is yes, the funding side is straightforward: we cover up to 100% of the A-to-B purchase for days, not weeks, on a flat fee. Subject to underwriting.

Question 3

Who picks the closing agent on a Tennessee assignment?

Accepted Answer

Since July 1, 2025, the buyer or borrower does. Tennessee legislation effective that date gives the buyer or borrower the right to choose the settlement agent, subject only to lender approval, and expressly stops a seller from requiring a particular one. That protection cannot be waived by agreement. A seller may still retain its own attorney for deed preparation, fee negotiation and document review. This matters on a wholesale deal, because both legs work far better when one settlement agent holds the file. Tennessee is a title and escrow state to begin with: no attorney is required to close, though drafting a deed for another party is the practice of law under TCA 23-3-103. Whether the 2025 right reaches commercial transactions is not settled in our sourcing, so confirm with your closer.

Question 4

What does the state charge on each leg of a Tennessee double close?

Accepted Answer

The transfer tax lands on every conveyance, and the grantee pays it. Tennessee's realty transfer tax is $0.37 per $100 of the greater of consideration or value, and by statute the grantee, meaning the buyer, pays. Two deeds means two grantees paying it, so on a $200,000 A-to-B leg the B buyer pays $740 (200,000 / 100 x 0.37 = 740), and your end buyer pays on the B-to-C price. There is also a sworn consideration statement on the deed face, false statements punishable as perjury, and the Department of Revenue runs a discovery program comparing sworn deed values against assessor values. Do not be creative with stated consideration. An assignment rather than a double close involves one conveyance instead of two, which is part of why assignments dominate. Price both structures before you choose.

Question 5

Where does Tennessee distressed inventory come from, and how fast do I have to move?

Accepted Answer

Mostly from trustee sales, on a publication clock of roughly three weeks. Tennessee forecloses non-judicially under a deed of trust, with no clerk's hearing and no upset-bid period. TCA 35-5-101 requires advertisement at least three different times in a county newspaper, with the first publication at least 20 days before the sale, plus registered or certified mail notice to the debtor on or before the first publication. That is your window to source, contract and line up funding. For what is actually trading in a given market, read the metro page rather than a state average, for example Nashville. Transactional funding runs in days, not weeks, so the constraint is usually your title work, not our money.

Question 6

Do you check credit for Tennessee transactional funding?

Accepted Answer

No. There is no credit check and no appraisal on this program. The loan exists for hours or days and is repaid out of the B-to-C closing, so we underwrite the two contracts and the title work rather than the borrower. We fund up to 100% of the A-to-B purchase on a flat fee rather than a rate. What we do need is a real, closable end buyer with proof of funds, a closer who will run both legs, and clean title. Business-purpose only. Subject to underwriting.

Question 7

Can I use Tennessee transactional funding on my first assignment?

Accepted Answer

Yes. There is no track record requirement on this program. With no credit check and no appraisal, what qualifies the deal is the paperwork: a valid A contract, a funded end buyer, and a settlement agent willing to close both legs. Get your written disclosure of the intent to assign right, because Tennessee's 2025 wholesaling act made that a live legal duty rather than a courtesy, and have Tennessee counsel review the form. Subject to underwriting.

Transactional Funding in Tennessee

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Transactional Funding in Tennessee, answered.

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Transactional Funding vs. other options

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