Real Property

Plain English Breakdown

The bill only affects certain types of property ownership and does not change other aspects of Tennessee's real estate laws.

Changes to Real Property Laws

This bill changes Tennessee's laws about certain types of property ownership and rights that can end after a long time.

What This Bill Does

• Removes the ability for old property agreements made more than 75 years ago to take back land if conditions aren't met.
• Limits new property agreements from July 1, 2025, forward so they cannot last forever and become unenforceable after 75 years.
• Allows current owners of properties with special ownership rules to keep those rules by filing a statement within one year of the bill's start date.

Who It Names or Affects

• People who own or inherit land in Tennessee under specific old agreements.
• Anyone buying or selling land with special conditions after July 1, 2025.

Terms To Know

reverter

The right to take back property if certain conditions are not met.

fee simple absolute

A type of ownership that gives the owner full rights and control over a piece of land without any special conditions or limits.

Limits and Unknowns

• The bill does not explain how it will affect specific cases where people have already filed statements to keep their property rules.
• It is unclear what happens if someone fails to file the required statement by July 1, 2026.

Official Summary Text

Under Tennessee law, a reverter, or reversion, is the
right of a grantor or their heirs to regain ownership of a property after a specific condition
has been met
or time period has passed
. This bill provides the following with regard to reverters or forfeiture provisions:



T
hat reverter or forfeiture provisions of unlimited duration contained in a deed, will, or other document establishing the common law estates of fee simple determinable, fee simple subject to condition subsequent, and fee simple subject to executory limitation executed more than 75 years prior to July 1, 2025, are abolished and unenforceable.



T
hat reverter and forfeiture provisions contained in a conveyance of real property by deed, will, or other document establishing an interest under the common law estates of fee simple determinable, fee simple subject to condition subsequent, and fee simple subject to executory limitation terminate and become unenforceable 75 years from the date of the conveyance containing the reverter or forfeiture provision.

However, past rights vested in deeds as of July 1, 2025, are converted to a fee simple absolute at the end of 75 years from the date created unless a sworn statement containing the name of the current owner of the property, the estate sought to be preserved, and a description of the property is filed in the register of deed's office of the county in which the property is located by July 1, 2026, to preserve the right. The sworn statement extends the reverter provision one time for a period of five years from July 1, 2025, or from the expiration of the 75
-
year period, whichever occurs first, at which time the interest will become a fee simple absolute in the owner of the property.



That a
reverter or forfeiture provision contained in a deed, will, or other document conveying an interest in real property and purporting to establish the common law estates of fee simple determinable, fee simple subject to condition subsequent, and fee simple subject to executory limitation, executed on or after July 1, 2025, is invalid and unenforceable.



That r
eversionary estates terminated or prohibited by this
bill
results in title in the grantee or recipient being fee simple absolute. An action must not be maintained to recover an interest or to forfeit an interest upon the termination of the reversionary interest.

Current Bill Text

SENATE BILL 896
By Walley

HOUSE BILL 986
By Capley

HB0986
002453
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 66,
Chapter 1, relative to real property.

WHEREAS, the members of this General Assembly find that the common law estates of
fee simple determinable, fee simple subject to condition subsequent, and fee simple subject to
executory limitation are ancient concepts, and reverter and forfeiture provisions of unlimited
duration in the conveyance of any interest in real property constitute an unreasonable restraint
on alienation and are contrary to the policy of this State; and
WHEREAS, the members of this General Assembly find that it is in the best interests of
the citizens of this State that the common law estates of fee simple determinable, fee simple
subject to condition subsequent, and fee simple subject to executory limitation be abolished for
the surety of title to real property; now, therefore,
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 66, Chapter 1, Part 1, is amended by
adding the following as a new section:
(a) Reverter or forfeiture provisions of unlimited duration contained in a deed,
will, or other document establishing the common law estates of fee simple determinable,
fee simple subject to condition subsequent, and fee simple subject to executory
limitation executed more than seventy-five (75) years prior to July 1, 2025, are abolished
and unenforceable.
(b)
(1) Reverter and forfeiture provisions contained in a conveyance of real
property by deed, will, or other document establishing an interest under the

- 2 - 002453

common law estates of fee simple determinable, fee simple subject to condition
subsequent, and fee simple subject to executory limitation terminate and become
unenforceable seventy-five (75) years from the date of the conveyance
containing the reverter or forfeiture provision.
(2) Notwithstanding subdivision (b)(1), past rights vested in deeds as of
July 1, 2025, are converted to a fee simple absolute at the end of seventy-five
(75) years from the date created unless a sworn statement containing the name
of the current owner of the property, the estate sought to be preserved, and a
description of the property is filed in the register of deed's office of the county in
which the property is located by July 1, 2026, to preserve the right. The sworn
statement extends the reverter provision one (1) time for a period of five (5) years
from July 1, 2025, or from the expiration of the seventy-five (75) year period,
whichever occurs first, at which time the interest will become a fee simple
absolute in the owner of the property.
(c) A reverter or forfeiture provision contained in a deed, will, or other document
conveying an interest in real property and purporting to establish the common law
estates of fee simple determinable, fee simple subject to condition subsequent, and fee
simple subject to executory limitation, executed on or after July 1, 2025, is invalid and
unenforceable.
(d) Reversionary estates terminated or prohibited by this section results in title in
the grantee or recipient being fee simple absolute. An action must not be maintained to
recover an interest or to forfeit an interest upon the termination of the reversionary
interest.
SECTION 2. This act takes effect July 1, 2025, the public welfare requiring it.