Top 8 Things to Know About Tennessee Residential Property Disclosure Law

Top 8 Things to Know About Tennessee Residential Property Disclosure Law

If you are thinking of buying or selling a home, you may have questions about the basics on Tennessee property disclosure law. The Tennessee Residential Property Disclosure Act, Tenn. Code Ann. 66-5-201, et. seq., requires the Seller of a home to provide the Buyer with a Property Disclosure Statement.  Despite this law, there is still a large amount of civil litigation arising from defects discovered in a home after the Buyer has moved in. Be aware of these top things to know about Tennessee real estate property disclosure law:

Tennessee Property Disclosure Law

1. Sellers are required to disclose the condition of the home, including any “material defects.” What does “material” mean? Generally, any fact or condition that might affect a Buyer’s decision to purchase the home.
2. Sellers are only required to disclose based on the information they have.  Sellers are not required to have a home inspection, hire experts, or conduct an independent investigation to discover everything that might be wrong with their home.
3. The Disclosure Statement is not a warranty. The disclosure form is not a substitute for a thorough home inspection.  If you are the Buyer, you shouldn’t just rely on the disclosure form. Hire your own home inspector.
4. Some sellers are exempt from making disclosures. Common exceptions include sales or transfers between co-owners, new construction, purchases from lenders after foreclosure, auction sales, or if the Seller has not lived in the home within the 3 years before the Closing.
5. Sellers are NOT Required to Repair Items listed in the Disclosure.  If you are the Buyer, be aware that Sellers don’t have to fix anything listed as broken or defective. If you want an item repaired, you must contract for it. In other words, both Buyer and Seller must agree in the final contract that an item will be repaired by the Seller before closing.
6. Sellers ARE required to update their disclosures before closing. Sellers must update to address any material changes that have taken place since the original date of disclosure, or to confirm to the buyer that the original form is still accurate. Tenn. Code. Ann. 66-5-205.  If you are the Buyer, you should not close on a home without seeing an updated Disclosure Form signed and dated by the Seller.
7. Representations in the Disclosure Form are those of the Seller only, and not the Real Estate Agents.  The Disclosure Act applies only to Sellers.  An agent can’t be sued under the Disclosure Act for information contained in a Seller’s disclosure form unless the agent is a signatory. Tenn. Code. Ann. 66-5-202; 66-5-208. However, real estate agents have certain disclosure duties pursuant to the Tennessee Real Estate Broker License Act of 1973.   Under the Real Estate Broker License Act, a real estate agent is required to “[d]isclose to each party to the transaction any “adverse facts” of which the licensee has actual notice or knowledge.”  Tenn. Code Ann. § 62-13-403.  What are adverse facts? Both Acts define adverse facts as conditions or occurrences generally recognized by competent agents that significantly reduce the structural integrity of improvements to real property or present a significant health risk to occupants of the property. Tenn. Code Ann. § 62–13–102(2); § 66–5–206. However, the definition of adverse facts found in the Real Estate Broker License Act also contains a third prong, for conditions or occurrences that “have negative impact on the value of the real estate.” Tenn. Code Ann. §62-13-102(2). See Ledbetter v. Schacht, 395 S.W.3d 130, 136 (Tenn. Ct. App. 2012).
8. Any lawsuit against a Seller for a misrepresentation in a Disclosure Statement must be filed within one (1) year.  Any cause of action based directly on the disclosure law statutes will be lost if not filed within one (1) year from the date the buyer received the disclosure statement or the date of closing, or occupancy, whichever occurs first. Tenn. Code Ann. § 66-5-208.

Discovered a problem after closing?

If there is “trouble in paradise” with your new home and you think the Seller or a Real Estate Agent made a misrepresentation concerning the home, speak with an attorney as soon as possible.

While a lawsuit is not always necessary to resolve a legal issue, remember there are deadlines within which to file a lawsuit, if necessary.  An experienced litigation attorney can advise you of your options based on the particular facts of your situation.

Want to speak with an Attorney?

The attorneys at Patterson Bray are experienced litigation and contract lawyers. We understand real estate transactions and sales, and we know the disclosure laws applying to both home sellers and real estate agents and brokers in Tennessee.  Call us today at (901) 372-5003.

Additional RESOURCES:

Read more about Lawsuit Deadlines: How Long Do I have to File a Lawsuit in Tennessee?

Premises Liability FAQs

Our Tennessee premises liability lawyers often talk with people who have been injured because a property was not kept reasonably safe. Questions come up quickly, especially when someone is dealing with medical bills, missed work, and uncertainty about how property laws apply to their situation. Below, we put together these common questions to offer clear guidance around premises liability, using straightforward language and real-world points that matter to injured visitors and customers. 

When Is A Property Owner Responsible For An Injury On Their Property

A property owner can be responsible when they fail to correct or warn about a danger they knew about or should have known about. This applies to stores, private homes, rental units, parking lots, and other locations open to guests or customers. The key question is whether the owner had a reasonable opportunity to fix the hazard or place a warning but did not. When an unsafe condition, such as poor lighting, broken flooring, or a slippery walking surface, leads to injuries, our Tennessee premises liability lawyer looks closely at the actions of the property owner to determine whether they met their responsibility. We also consider how long the danger was present and whether others reported similar issues.

How Do We Know If A Hazard Should Have Been Corrected

We look at how long the hazard existed and whether the owner performed regular inspections or maintenance. If a condition was ignored for an extended period, that often supports the idea that it should have been corrected earlier. We also consider industry standards and basic safety expectations. For example, loose handrails, torn carpeting, or standing water are conditions most owners should address promptly. The timing matters as well. If employees walked past the danger without taking action, that shows the owner likely had enough time to correct the issue.

What Evidence Is Helpful In A Property Injury Claim

Photos and videos taken at the scene are some of the strongest forms of evidence. Our skilled Tennessee premises liability lawyers look for incident reports, witness statements, maintenance logs, and any available surveillance footage. Medical records are essential because they show what injuries were diagnosed and how they connect to the unsafe condition. When possible, we encourage people to write down what they remember while the details are still fresh. This can include how the hazard looked, who was present, and what was said immediately after the injury occurred. Even small details can be useful when building a clear picture of what happened.

How Long Do We Have To Take Legal Action After Being Hurt On Someone’s Property

Deadlines vary by state, but most areas impose a time limit that requires us to file a claim within a specific period after the injury. Missing this deadline usually means losing the ability to pursue damages at all. Because of that, we try to review property injury cases as soon as possible. Early action gives us time to collect evidence before it disappears and speak with witnesses while their memories are accurate.

What Damages Can We Pursue In A Property Hazard Case

We may pursue compensation for medical bills, lost income, and harm related to the long-term effects of the injury. Ongoing treatment needs and future limitations are also taken into account. When a preventable hazard caused the injury, the law allows us to seek recovery for the impact it has on daily life, physical comfort, and overall well-being.

Move Forward With Confidence

We hope these answers give you a clearer understanding of how property-related injury claims work and what steps may support your legal options. If you or someone close to you was hurt because a property was not kept reasonably safe, we encourage you to reach out to us for a free consultation. Together, we can talk through the situation and discuss how we may help you move forward with confidence. At Patterson Bray PLLC, our work is personal, and clients become family.