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Wholesaling-specific rules Reviewed

Tennessee real estate wholesaling laws (2026)

Since March 2025, Tennessee wholesalers must give written disclosures of their equitable interest to sellers and assignees.

Is wholesaling legal in Tennessee?

Quick answer

Public Chapter 72 (SB 909/HB 781, 2025) treats assigning your equitable interest in a purchase contract to a later buyer for a higher price as wholesaling. It allows the practice if the wholesaler discloses the nature of the equitable interest in writing to the seller and to the subsequent purchaser or assignee. It does not ban wholesaling, cap assignment fees, or add a license requirement.

Yes, wholesaling is legal in Tennessee, provided you make the written disclosures required since 2025. Public Chapter 72 (SB 909 / HB 781) treats assigning your equitable interest in a purchase contract to a later buyer for a higher price as wholesaling, and it permits that practice when the wholesaler discloses the nature of the equitable interest in writing to both the seller and the subsequent purchaser or assignee. The law does not ban wholesaling, cap assignment fees or create a new license. Most sources date it to its signing on March 25, 2025, though one listing shows April 8, 2025. Secondary sources cite T.C.A. 66-4-401 to -403 as the codified sections, and some describe extra formatting and timing rules that have not been checked against the enacted text. Separately, whether a high-volume wholesaler needs a license under the Broker License Act remains an open question.

Tennessee at a glance

Status
Wholesaling-specific rules
License required to wholesale?
No wholesaler-specific license; disclosure rules apply
Seller cancellation / disclosure rights?
Yes — see seller protections
Key law
Tenn. Pub. Ch. 72 (2025), amending T.C.A. Titles 47 and 66 (effective Mar 25, 2025)
Regulator
Tennessee Real Estate Commission (TREC), Department of Commerce and Insurance
Transfer tax
Tennessee's realty transfer tax is 37 cents per $100 of the greater of consideration or value, and by statute the grantee (buyer) pays it; a separate indebtedness tax of 11.5 cents per $100 applies to mortgages above the first $2,000.
Last reviewed
Nov 6, 2026

What Tennessee requires from wholesalers

  • Disclose in writing to the seller, before the contract is signed, the nature of your equitable interest and your intent to market/assign it
  • Notify the seller of the assignment's effective date at least 3 business days before it takes effect (per REALTOR summaries)
  • Disclose in writing to the assignee/end buyer that you hold only an equitable interest and are not the owner
  • Some sources say disclosures must be in bold, large print in the agreement (unverified)

How to wholesale legally in Tennessee: step by step

  1. 1

    Prepare a written disclosure for the seller that explains you are acquiring an equitable interest and intend to market or assign it. Deliver it before or at contract signing, and keep a signed copy.

  2. 2

    Build the disclosure into the purchase agreement in a prominent way. Some sources say Public Chapter 72 calls for bold, large print; that detail is unverified, so confirm the formatting rule against the enacted text.

  3. 3

    Plan your notice timeline. REALTOR association summaries report that the seller must be told the assignment's effective date at least 3 business days before it takes effect; verify this against the statute before relying on it.

  4. 4

    Give the assignee a separate written statement that you hold only an equitable interest and are not the owner of the property. Attach it to the assignment agreement so the end buyer signs both together.

  5. 5

    Keep your marketing focused on the contract position and avoid presenting yourself as the seller or as an agent. Acting for others for compensation can still raise a Broker License Act issue.

  6. 6

    Store every disclosure and notice for at least two years. A civil action for violations must be brought within two years of executing the purchase contract, so that is the window in which your paperwork may be tested.

Seller protections and penalties in Tennessee

  • Written disclosure of the wholesaler's equitable interest and intent to assign
  • Advance notice (3 business days) of assignment effective date
  • Private action for violations within 2 years after contract execution

Penalties: Civil action for violations must be brought within 2 years of executing the purchase contract; specific remedies not verified.

Assignment vs. double close in Tennessee

Public Chapter 72 is written around the assignment model, so an assignment in Tennessee means following its disclosure steps to the letter: written notice of your equitable interest to the seller, written notice to the assignee, and, per REALTOR summaries, advance notice of the assignment's effective date. The upside is a single closing in which the end buyer, as grantee, pays the 37-cents-per-$100 realty transfer tax. A double close changes the tax picture: you become the grantee on the first deed and pay transfer tax on that purchase, then your end buyer pays it again on the resale, so the same property is taxed twice within days. Some investors view a double close as falling outside the assignment-focused definition, but that reading has not been tested, and giving the disclosures anyway costs little. If you double close, also budget for two title and settlement charges and short-term funds for the first purchase.

Transfer tax: Tennessee's realty transfer tax is 37 cents per $100 of the greater of consideration or value, and by statute the grantee (buyer) pays it; a separate indebtedness tax of 11.5 cents per $100 applies to mortgages above the first $2,000.

Compare your net both ways with the double close calculator. If you double close, transactional funding can cover the A-to-B purchase.

Compliance mistakes to avoid in Tennessee

  • Delivering the seller disclosure after the contract is signed, or orally, undercuts the written-disclosure requirement that is the core of Public Chapter 72.
  • Forgetting the assignee disclosure; the law requires written notice to the subsequent purchaser that you hold only an equitable interest, not title.
  • Treating secondary-source details such as bold type and the 3-business-day notice as optional; until verified, following them is the safer approach.
  • Discarding deal files too soon, even though sellers may bring a civil action within two years of the purchase contract.

Recent changes to Tennessee wholesaling law

  1. SB 909 / HB 781 signed (Pub. Ch. 72)

    Defined wholesaling and equitable interest; required written disclosures to seller and assignee.

Real estate licensing in Tennessee

Real estate licensing in Tennessee is overseen by Tennessee Real Estate Commission (TREC), Department of Commerce and Insurance.

Affiliate broker applicants complete 60 hours of real estate principles before the exam and the 30-hour Course for New Affiliates before licensing, then must affiliate with a firm within six months of the exam. Licensing requirements

Running the numbers on a Tennessee deal

Compliance is half the job; pricing is the other half. Use the wholesale MAO calculator to work backward from your end buyer's costs, estimate value with the ARV calculator, budget repairs with the rehab cost estimator, and sanity-check with the 70% rule. New to the math? Start with how to calculate MAO.

Most Tennessee end buyers use a lender. Jaken Finance Group funds fix-and-flips up to 100% of total cost on qualified deals, typically in 7–10 business days on a complete file — see Tennessee investor loans or our end-buyer financing guide.

Tennessee wholesaling FAQ

Is wholesaling legal in Tennessee?

Yes. Public Chapter 72 of 2025 allows a person to assign an equitable interest in a purchase contract for a higher price, as long as the wholesaler discloses the nature of that interest in writing to the seller and to the assignee. The law does not ban wholesaling, cap fees or add a license requirement.

What disclosures does Tennessee require from wholesalers?

You must disclose in writing to the seller the nature of your equitable interest and your intent to market or assign it, and disclose in writing to the end buyer that you hold only an equitable interest and are not the owner. REALTOR summaries also describe a 3-business-day advance notice of the assignment date; confirm that against the enacted text.

Do you need a license to wholesale in Tennessee?

Public Chapter 72 did not create a license requirement for wholesalers. Whether someone who wholesales often, or who acts for other people, needs a license under Tennessee's Broker License Act is a separate question the 2025 law did not settle. Staying in a principal role and avoiding fees from sellers reduces that risk.

When did the Tennessee wholesaling law take effect?

Most sources say the law took effect when it was signed on March 25, 2025, as Public Chapter 72. One bill listing shows April 8, 2025. To be safe, treat any contract signed after spring 2025 as covered and include the disclosures. No 2026 amending bill was found.

Can a seller sue a wholesaler in Tennessee?

Yes. The law provides for a civil action over violations, and that action must be brought within two years after the purchase contract is executed. The specific remedies available were not verified, so keep complete records of every disclosure and notice for at least that period.

Who pays transfer tax in Tennessee?

The grantee, meaning the buyer, is the statutory payer of Tennessee's realty transfer tax of 37 cents per $100, computed on the greater of the consideration or the property's value. In a double close the wholesaler is the grantee on the first deed, so the tax is paid on both transfers.

How do you become a real estate agent in Tennessee?

Tennessee licenses new agents as affiliate brokers. You complete 60 hours of real estate principles before taking the exam, finish the 30-hour Course for New Affiliates and submit proof with your application, and affiliate with a firm within six months of passing the exam or the license is retired.

Statutes, rules and sources

  • Tenn. Pub. Ch. 72 (2025), amending T.C.A. Titles 47 and 66

    Wholesaling disclosure law (SB 909 / HB 781)

    Effective Mar 25, 2025Read the text

Last reviewed Nov 6, 2026. This page summarizes public sources for general information and isn't legal advice. Local rules may also apply — confirm with a licensed Tennessee real estate attorney before you contract.

Other states: wholesaling-specific rules

End-buyer financing · Jaken Finance Group

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