Not legal advice. This is a plain-language reading of the enrolled text of Tennessee Senate Bill 909 and House Bill 781 (Public Chapter 72) and the General Assembly's bill history page, as available online on October 17, 2026. Have a Tennessee real estate attorney review your contract before you use it.
What counts as wholesaling in Tennessee?
Public Chapter 72 started life as companion bills, Senate Bill 909 and House Bill 781, in the 114th General Assembly. The Senate passed SB 909 33 to 0, the House passed it 92 to 0, and the General Assembly's bill history lists it as signed by the governor on April 8, 2025. Section 3 says the act takes effect upon becoming law.
The act adds a new part to Title 66, Chapter 4. Section 66-4-401 defines "equitable interest" as "the right of a buyer to benefit or profit from real property after the buyer has entered into a contract for the purchase or sale of real property with a seller, but before the legal title has been transferred from the seller to the buyer."
Section 66-4-402 then defines the act of wholesaling. A buyer who has a contract with a seller wholesales the property when it assigns its equitable interest to a subsequent purchaser for a higher price than the buyer paid. Notice what is missing. There is no list of examples, no mention of double closings, and no reference to marketing or advertising. The trigger is an assignment at a profit. Section 66-4-403(c) adds that the part applies only to transactions involving real property.
What must a Tennessee wholesaler disclose?
Section 66-4-403(a) lets a buyer under contract wholesale the property if it discloses information in writing to two different people. The disclosures are not the same, and the seller's carries a deadline.
| Who gets it | What the text requires | When |
|---|---|---|
| Potential subsequent purchaser or assignee | The nature of the buyer's equitable interest in the property | Before assignment (the text sets no day count) |
| Seller | The buyer's intent to market its equitable interest | Prior to execution of the contract |
| Seller | The effective date of any assignment of the buyer's interest to a subsequent purchaser | At least three business days before the assignment takes effect, if the contract allows assignment |
| Both | Disclosures in bold, large font print, included in the written agreement | In the contract itself |
The format rule matters as much as the content. Section 66-4-403(a)(2) says the disclosures "must be in bold, large font print, and included in the written agreement." A separate email or a line buried in boilerplate does not meet that sentence. The act does not define "large font," so a prudent investor sets the disclosure apart in a heading or a boxed paragraph well above body size and keeps a signed copy.
How does the three business day notice work?
The seller notice has two parts that people tend to merge. The first, the intent to market the equitable interest, has to be in the agreement the seller signs. The second, the effective date of any assignment, is a heads-up that has to reach the seller at least three business days before that date. The act applies the second one "if the contract allows for such assignment," so a contract that bars assignment does not trigger it, though it also cannot be wholesaled by assignment.
The statute does not define "business day." Count conservatively, skipping weekends and legal holidays, and send the notice in a way you can prove. If you plan to assign on a Monday, the notice should go out no later than the prior Wednesday morning, with a day to spare. Because the notice has to state the effective date, you also need a buyer lined up and a date chosen before you send it. That makes the practical timeline longer than an old-style same-day assignment.
| Step | Example timing |
|---|---|
| Contract signed with bold intent-to-market language | Day 0 |
| Assignee identified and told the nature of your interest | Before you sign the assignment |
| Written notice of assignment effective date sent to seller | At least three business days before that date |
| Assignment takes effect | No earlier than the date in the notice |
What does the act leave unsaid?
Read the whole act and you find two short sections of rules and one sentence on enforcement. Section 66-4-403(b) says "an action for violation of this part must be commenced within two (2) years after the execution of a contract for purchase and sale of real property." That is the only enforcement language. The text does not name a penalty, does not give the seller a right to cancel, does not void the contract, and does not say who may sue. Those answers will come from courts and from other parts of Tennessee law, not from this act.
It also does not require a deposit to be held in escrow, does not bar claims of agency for the seller, and does not require a specific form. Compare that with the Oklahoma law, which gives sellers a two business day cancellation right and voids noncompliant contracts, or the rules in North Carolina and South Carolina. Tennessee chose a disclosure rule and a two year clock and stopped there. The risk for an investor is not a clean statutory penalty. It is an open question: a seller who was not told, in bold, that the contract would be marketed has a clear complaint and a two year window to bring it.
Do you need a license to wholesale in Tennessee?
The act does not create a wholesaler license and does not mention the Real Estate Commission. The Tennessee Real Estate Commission's page says it regulates real estate brokers, affiliate brokers, firms, rental location agents, time-share salespersons and developments, and vacation clubs and lodging services, and that licensure requirements are found in Title 62, Chapter 13 of the Tennessee Code. The page does not mention wholesaling.
That leaves the old question unanswered by this act: when does marketing a contract you do not own look like brokerage? We did not find Commission guidance resolving it. Advertising a property you do not own, for pay, is the activity most likely to draw a question, so have a Tennessee attorney review how you market and how you structure your fee. Trevor Rice holds a Texas license, not a Tennessee one, and this guide is not a substitute for Tennessee counsel.
| Activity | Treatment under the enrolled text |
|---|---|
| Buy, close in your own name, then renovate or resell | No assignment, so Section 66-4-402 is not triggered |
| Contract to buy, then assign for more than you paid | Wholesaling under Section 66-4-402; disclosures required |
| Contract to buy, then assign for the same price or less | Outside the definition, which requires a higher price |
| Contract that does not allow assignment | The seller's three day notice applies only if the contract allows assignment |
What should investors do on a Tennessee deal?
Treat the act as a checklist, then add the attorney review it does not give you. Tennessee prices are rising at a modest pace. The Federal Housing Finance Agency's all-transactions index for Tennessee, published through FRED, stood at 705.37 in the second quarter of 2026 against 687.53 a year earlier, a gain of about 2.6 percent. Modest appreciation leaves little room to also carry legal risk on a thin spread.
- Rewrite your purchase contract. Add a bold, large-print paragraph stating that you intend to market your equitable interest, and keep it inside the agreement.
- Tell the assignee what they are buying. Put the nature of your interest in writing, including that you do not hold title.
- Send the seller notice early. Give the effective date of the assignment with at least three business days to spare and keep proof of delivery.
- Check the assignment clause. The notice duty turns on whether the contract allows assignment.
- Calendar two years. Keep the file for at least that long after execution.
- Have counsel review your marketing. The act is silent on brokerage.
- Consider a direct cash buyer. If you want a clean exit, submit the deal to Home Pros or browse the marketplace.
Home Pros is a veteran-owned cash buyer based in San Antonio, founded in 2025. We buy houses as-is, pay closing costs, and can close in as little as 7 days. Tennessee sellers can read our Tennessee page, see how we calculate an offer, or try the cash offer calculator, and investors can see how our cash buyers work. For the mechanics of each exit, read our guides to contract assignment and double closing versus assignment. For Tennessee deal sources, see Tennessee tax sale redemption and off-market properties in Nashville.
Frequently asked questions
Is wholesaling legal in Tennessee?
Yes, with required disclosures. Public Chapter 72 (SB 909 and HB 781), signed April 8, 2025, says a buyer under contract may wholesale real property if it discloses its equitable interest to the new buyer and tells the seller in writing, in bold large print, that it intends to market the contract.
What does the Tennessee wholesaling law require?
Two written disclosures, in bold, large font, included in the written agreement. The new buyer must be told the nature of the wholesaler's equitable interest. The seller must be told, before the contract is executed, that the wholesaler intends to market its interest, and the effective date of any assignment at least three business days before it takes effect.
What counts as wholesaling under Tennessee law?
A buyer who has a contract to purchase real property and then assigns its equitable interest to a subsequent purchaser for a higher price than the buyer paid. Equitable interest means the buyer's right to benefit or profit from the property after contracting but before legal title transfers.
How long does a seller have to sue a Tennessee wholesaler?
An action for a violation must be commenced within two years after the contract for purchase and sale is executed. The statute text does not list a specific penalty or a cancellation right for the seller.
Does Tennessee require a wholesaler license?
The act does not create a wholesaler license. The Tennessee Real Estate Commission regulates brokers, affiliate brokers, and firms under Title 62, Chapter 13 of the Tennessee Code, and its page does not mention wholesaling. Ask a Tennessee real estate attorney whether your marketing or fee structure crosses into brokerage.
Sources
Documents were read on October 17, 2026. Quoted language is from the sources below.
- Tennessee Senate Bill 909, text: the definitions, the wholesaling rule, the disclosures, and the two year limit (HB 781 carries identical text).
- Tennessee General Assembly, SB 909 bill information: vote counts, no amendments, Public Chapter 72, and the governor's signature on April 8, 2025.
- Tennessee Real Estate Commission: the professions it regulates and the reference to Title 62, Chapter 13.
- FRED, All-Transactions House Price Index for Tennessee: 705.37 in Q2 2026 and 687.53 in Q2 2025 (index 1980 Q1 = 100).
Not legal advice. Statutes change and courts may interpret this act. Confirm current law with a licensed Tennessee attorney.