Tennessee
Tennessee Condo Resale Disclosure: Fees, Deadlines, and How to Order
A resale disclosure is the document a title company asks for before a Tennessee closing. Tennessee associations must deliver it within 10 business days. Tennessee puts no dollar cap on the fee.
Free for the resale platform. No contract to sign.
Tennessee Resale Disclosure
Example Hollow Condominium Association
Regular assessment
$185.00 monthly
Reserve balance
$171,200.00
Master insurance
Certificate on file
Due to the requester
Within 10 business days
Tennessee at a glance
- What Tennessee calls it
- Resale Disclosure
- Fee cap
- No fixed dollar cap
- Delivery deadline
- 10 business days
- Buyer's right to cancel
- No statutory right tied to this document
Also called: resale certificate, HOA resale certificate. If you were told to get a Tennessee resale certificate, or a TN resale certificate as closing agents write it, for a home in an HOA or a condominium, this is that document. It has nothing to do with the sales tax resale certificate a retailer files with the state.
What Tennessee law sets
One set of rules covers Tennessee. Havn applies it to every order in the state.
Tenn. Code 66-27-502
Condominium Acts. Applies to condominiums.
- Required by statute
- Yes
- Fee
- No fixed dollar cap
- Deadline
- 10 business days from the request
Tennessee condo laws on resale documents, in plain words
Each entry links to the official text. Read the statute itself before relying on a summary.
T.C.A. 66-27 (Condominium Acts)
Governs the creation, governance, and operation of condominiums in Tennessee through two acts: the Horizontal Property Act, which continues to govern condominiums created before January 1, 2009, and the Tennessee Condominium Act of 2008, which applies to condominiums created on or after that date and covers formation, unit owners' associations, assessments and common expenses, meetings and records, and owner rights. Purchaser protection provisions, including resale disclosure requirements, apply to condominiums created both before and after that date.
Tenn. Code 66-27-502 (Resale Information from Association or Declarant)
Requires a condominium association, or a declarant while construction is ongoing, to provide requested resale disclosure information to a unit owner, purchaser, or lender within a set period, and allows a reasonable fee for supplying it.
Tenn. Code 66-27-503 (Contents of Resale Disclosure Information)
Lists what the resale disclosure package must contain, including governing documents and rules, budgets and financial statements, current assessments and any delinquencies on the unit, insurance coverage, and pending litigation.
Tenn. Code 66-27-505 (Deadlines and Remedies for Resale Disclosure)
Sets timeframes for delivering the resale disclosure information and provides remedies and penalties, including rescission or specific performance rights, when it is not timely provided, and limits a purchaser's responsibility for undisclosed past due assessments in that situation.
T.C.A. 66-27, Part 6 (Display of Flags)
Part 6 of the Multiple Ownership of Property chapter (66-27-601 et seq.) reaches homeowners' associations and condominiums formed at any time: it defines terms such as homeowners' association and restrictive covenant and grants owners the right to display the United States flag and to post water hazard warning signs regardless of contrary covenants. It is not a homeowners' association act: Tennessee has no resale disclosure, payoff or estoppel statement, or fee cap for homeowners' associations, whose resale packages issue under their governing documents.
The notice Havn prints on every Tennessee resale disclosure
Every Tennessee document Havn prepares carries a notice that tells the reader where the document comes from and what Tennessee law says about it. This is the wording, act by act.
Tenn. Code 66-27-502Condominiums
This resale disclosure information is furnished under Tennessee Code 66-27-502 and 66-27-503 within 10 business days after the association receives a written or electronic request from a unit owner, a purchaser, a lender to either of them, or their authorized agents. The association may charge a reasonable fee for providing the information, and if that fee is not paid it may be assessed against the unit whose owner, lender, or purchaser requested the information (66-27-502(a)). The requesting party is entitled to rely on the information provided unless that party has actual knowledge to the contrary (66-27-502). If the information is not provided within the time the statute requires, the association is liable to the requesting party for a penalty of $250 following the first request and $500 if the information is not supplied within 10 business days following a second request, together with costs and reasonable attorney's fees. Neither the purchaser nor any unit owned by the purchaser is liable for past due assessments that would have been disclosed had the information been supplied within 10 business days following the second request (66-27-505(a)(2)). These penalties are not the exclusive remedy, and other remedies available at law or in equity remain open to the requesting party. If the declarant is in control of the association or the condominium at the time of the request, the declarant must provide the information within 10 business days after receiving a written request, or, if it is not available then, within 10 business days before closing; if it is not provided within that time, the prospective buyer may rescind the contract upon notice to the declarant, or may instead extend the closing date to a date 10 business days after the information is provided and seek specific performance, recovering costs and reasonable attorney's fees (66-27-505(b)). The information in this document is current as of its issue date.
Tennessee's payoff statement
On written request, the association must furnish a unit owner, or a holder of any mortgage or deed of trust encumbering the unit, or their authorized agents, a written statement setting forth the amount of unpaid assessments against the owner's unit, within seven days after receipt of the request; the statement is binding on the association (Tenn. Code 66-27-415(h)). Section 66-27-202(a) applies 66-27-415 to condominiums created before January 1, 2009, for events and circumstances after that date. No fee is stated for the statement. Tennessee has no comparable statute for homeowners' associations.
About Demand LettersDocuments Tennessee adds to the package
Beyond the governing documents, budget, and financial statements every state expects, Tennessee adds these. Havn attaches each one as its own exhibit.
- Minutes of member and board meetings for the 24 months before the request (Tenn. Code 66-27-503(5))
Tennessee resale disclosure: common questions
What is a Tennessee resale disclosure?
It is what Tennessee law has the association provide when a home in condominiums is sold: a statement of what the home owes and of the association's finances, insurance, and rules, under Tenn. Code 66-27-502.
How much does a Tennessee resale disclosure cost?
Tennessee sets no dollar cap, so the association or its management company sets the fee.
How long does a Tennessee association have to provide a resale disclosure?
10 business days, counted from the request.
Is a resale disclosure required in Tennessee?
Yes, for condominiums, under Tenn. Code 66-27-502.
Can a buyer cancel after receiving a Tennessee resale disclosure?
Tennessee law ties no cancellation right to this document. Any right to cancel comes from the purchase contract or from other disclosure laws.
Who pays for the resale disclosure in Tennessee?
Whoever orders it pays the association's fee, usually the seller or the closing agent on the seller's behalf, and the purchase contract can move the cost to the buyer.
What is included in a Tennessee resale disclosure?
What the home owes the association, the fees due at closing, the budget and reserves, the insurance the association carries, pending lawsuits, and the governing documents. Tennessee adds one more item, listed on this page. The full list is in Tenn. Code 66-27-502.
How do I get a resale disclosure in Tennessee?
Ask the association, or its management company if it has one. Many take the request through an online order page and deliver by email. Once asked, a Tennessee association has 10 business days. A buyer should ask the seller or the closing agent to order it.
Is this the same as a Tennessee sales tax resale certificate?
No. A sales tax resale certificate is a form a retailer gives a supplier so it can buy goods without paying sales tax. It shares a name and nothing else. This page is about the condo document used when a home is sold.
How Tennessee compares with its neighbors
Management companies that work across state lines meet a different rule on each side. Tennessee: no fixed dollar cap, 10 business days.
Georgia
Resale Package
No fixed dollar cap
5 business days
Not required by statute
North Carolina
Resale Certificate
No fixed dollar cap
No statutory deadline
Required by statute
Kentucky
Resale Certificate
No fixed dollar cap
10 days
Required by statute
Alabama
Resale Certificate
No fixed dollar cap
10 days
Required by statute
See all 51 jurisdictions on the map, compare every state in the fee and deadline table, or read about lender questionnaires, estoppel letters, and demand letters.
Your next Tennessee resale disclosure could write itself.
The resale platform is free for the association. The requester pays for the document. No contract to sign.