Real Property

Plain English Breakdown

It is unclear how this new requirement will impact small businesses compared to larger corporations.

Tennessee Real Property Registration Act

This bill requires certain business entities to register their purchases of residential rental properties with the Tennessee Secretary of State and imposes penalties for non-compliance.

What This Bill Does

• Requires corporations, limited liability companies, limited partnerships, and limited liability partnerships (called 'institutional buyers') to register when they buy or take over residential rental property in Tennessee starting January 1, 2027.
• Specifies that registration must be completed within the later of 60 days after the purchase date or by January 1, 2027.
• Lists information that must be included in the registration such as the name of the buyer, property addresses, contact details for a person managing the rental units, and the number of rental units.
• Allows the Secretary of State to impose fines up to $2,000 per violation if businesses do not register on time or provide false information.
• Makes all registration information available to the public through an online searchable database.

Who It Names or Affects

• Business entities that buy residential rental properties in Tennessee starting January 1, 2027.
• The Secretary of State who will manage and enforce this new requirement.

Terms To Know

Institutional buyer

A business entity like a corporation or limited liability company that buys residential rental property in Tennessee.

Residential rental property

Real estate with one or more units rented out for living purposes.

Limits and Unknowns

• The bill does not specify what happens if a business fails to pay the civil penalty.
• It is unclear how this new requirement will impact small businesses compared to larger corporations.
• The exact rules and forms for registration are yet to be determined by the Secretary of State.

Official Summary Text

This bill requires, o
n or after January 1, 2027, a corporation, limited liability company, limited liability partnership, or limited partnership that purchases or acquires for consideration residential rental property in this state
("
institutional buyer
")

to
register its purchase or acquisition of residential rental property in this state with the secretary of state.

Registration must be made
(i) i
n such form and manner as prescribed by the secretary of state and

(
ii
)
w
ithin the later of 60 days after

Jan
uary 1, 2027 or
t
he date the institutional buyer purchases or acquires the residential rental property.

This bill requires the
secretary of state
to
require that registration pursuant to this
bill
includes
all of the following:



The name of the institutional buyer
.


The physical address of each residential rental property owned by the institutional buyer
.


The street address and zip code of the institutional buyer's registered office and the name of its registered agent at that office in this state
.


The name, street address, including the zip code, mailing address such as a post office box if the United States postal service does not deliver to the street address, and contact information, including a telephone number and electronic mail address, of at least
one
natural person who has management responsibility for the residential rental property
.


The number of rental units within the residential rental property.

CIVIL PENALTY

If the secretary of state finds that an institutional buyer violates this
bill
by failing to timely register, then
this bill requires
the secretary of state
to
assess a civil penalty not to exceed $2,000 for each violation.

PUBLIC RECORD

This bill provides that a
registration filed under this
bill
is a public
record
. The secretary of state
must
make the information reported on a registration available for viewing by the public on a website or database in a format that is searchable.

RULEMAKING

This bill authorizes the
secretary of state to promulgate rules to effectuate this
bill
.

Current Bill Text

SENATE BILL 1693
By Walley

HOUSE BILL 1703
By Bricken
HB1703
009080
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 4;
Title 5; Title 6; Title 7; Title 13; Title 47; Title 48;
Title 61 and Title 66, relative to ownership of
residential rental property by business entities.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 66, Chapter 2, is amended by adding
the following as a new part:
66-2-401. As used in this part:
(1) "Institutional buyer" means, whether domestic or foreign, a corporation,
limited liability company, limited liability partnership, or limited partnership that purchases
or acquires for consideration residential rental property in this state; and
(2) "Residential rental property" means real property on which is located one (1)
or more dwelling units leased or otherwise rented to tenants solely for residential
purposes.
66-2-402.
The purpose of this part is to assist the state and local governments in monitoring
and enforcing compliance with health, safety, and housing standards by requiring
business entities organized in this state and each foreign business entity with authority
to transact business in this state to register with the state rental properties they own and
lease.
66-2-403.
On or after January 1, 2027, an institutional buyer shall register its purchase or
acquisition of residential rental property in this state with the secretary of state.
66-2-404.

- 2 - 009080

Registration pursuant to § 66-2-403 must be made:
(1) In such form and manner as prescribed by the secretary of state; and
(2) Within the later of sixty (60) days after:
(A) January 1, 2027; or
(B) The date the institutional buyer purchases or acquires the
residential rental property.
66-2-405.
The secretary of state shall require that registration pursuant to this part includes:
(1) The name of the institutional buyer;
(2) The physical address of each residential rental property owned by the
institutional buyer;
(3) The street address and zip code of the institutional buyer's registered
office and the name of its registered agent at that office in this state;
(4) The name, street address, including the zip code, mailing address
such as a post office box if the United States postal service does not deliver to
the street address, and contact information, including a telephone number and
electronic mail address, of at least one (1) natural person who has management
responsibility for the residential rental property; and
(5) The number of rental units within the residential rental property.
66-2-406.
If the secretary of state finds that an institutional buyer violates this part by failing
to timely register as required under this part, then the secretary of state shall assess a
civil penalty not to exceed two thousand dollars ($2,000) for each violation.
66-2-407.

- 3 - 009080

A registration filed under this part is a public record for purposes of title 10,
chapter 7. The secretary of state shall make the information reported on a registration
pursuant to § 66-2-405 available for viewing by the public on a website or database in a
format that is searchable.
SECTION 2. The secretary of state is authorized to promulgate rules to effectuate this
act. The rules must be promulgated in accordance with the Uniform Administrative Procedures
Act, compiled in Tennessee Code Annotated, Title 4, Chapter 5.
SECTION 3. For the purpose of promulgating rules, this act takes effect upon becoming
a law, the public welfare requiring it. For all other purposes, this act takes effect January 1,
2027, the public welfare requiring it.