Real Property

Plain English Breakdown

The bill's effective date is specified as July 1, 2025, but the summary does not address potential transitional issues or enforcement mechanisms.

Electronic Record Submission Act

This bill allows certain entities to submit electronic records for registration with county registers of deeds in Tennessee.

What This Bill Does

• Allows licensed attorneys, banks, savings institutions, federally chartered lenders, title insurance companies, and state or local government entities to send electronic records to county registers of deeds.
• Permits county registers to accept electronic documents from authorized persons through electronic filing vendors.
• Requires electronic filing vendors to ensure that only authorized persons submit electronic records and holds them responsible for any damages caused by non-compliance.

Who It Names or Affects

• Licensed attorneys
• Banks, savings institutions, and credit unions
• Federally chartered lending institutions
• State or local government entities

Terms To Know

Electronic filing vendor

A company that helps authorized persons submit electronic records to county registers.

Authorized person

An individual or organization permitted by law to send electronic records for registration with a register of deeds.

Limits and Unknowns

• The bill does not specify what happens if an unauthorized person submits electronic records.
• It is unclear how the new requirements will be enforced and monitored.

Official Summary Text

Present law generally authorizes registers of deeds to
determine whether, and the extent to which, they will send and accept electronic records and electronic signatures to and from other persons and otherwis
e create, generate, communicate, store, process, use, and rely upon electronic records and electronic signatures
. This bill authorizes the
following persons
to
submit electronic records for registration with a register of deeds that accepts electronic rec
ords:

(1) A licensed attorney;

(2) A bank, savings and loan association, savings bank, or credit union;

(3) A federally chartered lending institution, a federal government-sponsored entity, an instrumentality of the federal government, or a person a
pproved as a mortgagee by the U
.
S
.
to make federally insured loans;

(4) A person licensed to make regulated loans;

(5) A licensed title insurance company or title insurance agent; or

(6) This state, or any county or municipality, utility district, sc
hool district, power district, sanitary district, or other political subdivision of this state, and any agency, authority, branch, bureau, commission, corporation, department, or instrumentality of such political subdivision.

Present law authorizes
count
y register
s

to
receive for registration any electronic document that is created by making a digitized image of an original paper document that is eligible for registration and
is
certified as a true and correct copy of the original
by a notarized attestati
on made by an attorney or the original record's custodian. This bill authorizes
county register
s

to
receive for registration electronic documents transmitted by electronic filing vendors on behalf of those persons authorized to submit electronic records
t
o registers of deeds under (1)
–
(6)
.
This bill specifies that i
t is the responsibility of the electronic filing vendor, and not the county register, to ensure that the vendor is only transmitting electronic documents to county registers from persons auth
orized to submit electronic records
. Also, a
n electronic filing vendor is liable for any damages resulting from the vendor's failure to comply with
the vendor's responsibility.

Current Bill Text

SENATE BILL 1230
By Briggs

HOUSE BILL 1039
By Garrett

HB1039
002677
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 47,
Chapter 10, Part 1 and Title 66, Chapter 24, Part
2, relative to electronic recordings.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 47-10-118, is amended by adding
the following as a new subsection:
(d) The following persons may submit electronic records for registration with a
register of deeds that accepts electronic records under this chapter:
(1) A licensed attorney;
(2) A bank, savings and loan association, savings bank, or credit union
doing business under laws of the United States or this state;
(3) A federally chartered lending institution, a federal government-
sponsored entity, an instrumentality of the federal government, or a person
approved as a mortgagee by the United States to make federally insured loans;
(4) A person licensed to make regulated loans;
(5) A licensed title insurance company or title insurance agent; or
(6) This state, or any county or municipality, utility district, school district,
power district, sanitary district, or other political subdivision of this state, and any
agency, authority, branch, bureau, commission, corporation, department, or
instrumentality of such political subdivision.
SECTION 2. Tennessee Code Annotated, Section 66-24-203, is amended by deleting
subsection (d) and substituting:

- 2 - 002677

(d)
(1) A county register may receive for registration electronic documents
transmitted by electronic filing vendors on behalf of those persons authorized to
submit electronic records pursuant to § 47-10-118(d).
(2) Subject to the requirements under subdivision (d)(1), a county
register may receive for registration electronic documents created by making a
digitized image of an original paper document that is eligible for registration and
has the certification required by § 66-24-101(d).
(3) All recordings of electronic documents eligible for registration
pursuant to this subsection (d) are validly registered when accepted for recording
by the county register. It is the responsibility of the electronic filing vendor, and
not the county register, to ensure that the vendor is only transmitting electronic
documents to county registers from persons authorized to submit electronic
records pursuant to § 47-10-118(d). An electronic filing vendor is liable for any
damages resulting from the vendor's failure to comply with this section.
SECTION 3. Tennessee Code Annotated, Section 66-24-204(a), is amended by adding
the following as a new subdivision:
(10) May only accept for registration documents transmitted by electronic filing
vendors on behalf of those persons authorized to submit electronic records pursuant to §
47-10-118(d). It is the responsibility of the electronic filing vendor, and not the county
register, to ensure that the vendor is only transmitting electronic documents to county
registers from persons authorized to submit electronic records pursuant to § 47-10-
118(d). An electronic filing vendor is liable for any damages resulting from the vendor's
failure to comply with this subdivision (a)(10).
SECTION 4. This act takes effect July 1, 2025, the public welfare requiring it.