Real Property

Plain English Breakdown

The bill summary and text do not provide specific details on enforcement mechanisms or penalties for non-compliance with the new requirements.

Tennessee Real Estate Consumer Fraud Protection Act

This bill changes rules for foreign title insurance companies, sets equal payment for title insurance premiums between buyers and sellers, requires non-resident property purchasers to designate an in-state agent, and mandates that deeds be prepared by Tennessee-licensed attorneys.

What This Bill Does

• Removes the requirement for foreign title insurance companies to file a power of attorney with the commissioner but requires them to maintain an office within Tennessee as long as they have outstanding liabilities.
• Requires both buyers and sellers to equally pay the premium for title insurance when buying or selling real property in Tennessee.
• Requires contracts for non-resident purchasers to include the designation of an agent within Tennessee who can receive legal documents on behalf of the purchaser.
• Prohibits registers of deeds from recording a deed unless it is prepared by a licensed attorney in Tennessee and includes the attorney's professional responsibility number.

Who It Names or Affects

• Foreign title insurance companies doing business in Tennessee
• Buyers and sellers of real property who need title insurance
• Non-resident purchasers of real property in Tennessee
• Registers of deeds in Tennessee

Terms To Know

Title Insurance Company

A company that provides insurance to protect against financial loss due to problems related to the title of a property.

Register of Deeds

An official who is responsible for recording and maintaining records of deeds, mortgages, liens, and other documents affecting real estate in their jurisdiction.

Limits and Unknowns

• The bill does not specify the consequences for foreign title insurance companies that do not maintain an office within Tennessee.
• It remains unclear how strictly registers of deeds will enforce the requirement to declare void any deed not prepared by a licensed attorney after July 1, 2026.

Official Summary Text

Present law requires a foreign title insurance company desiring to transact a title insurance business in this state to first file with the commissioner a written power of attorney appointing and authorizing the commissioner as its agent for the purpose o
f acknowledging or receiving service of process and upon whom process may be served, in all proceedings that may be instituted against the company in any court of this state, or in any court of the United States in this state, which power of attorney cont
in
ues in force so long as any liability remains outstanding against the insurer in this state.

This bill removes the requirements described above and only requires such foreign title insurance company to maintain an office within this state so long as any liability remains outstanding against the insurer in this state.

PREMIUM FOR TITLE INSURANCE

This bill requires the premium for title insurance to be paid equally by the buyer and the seller of the real property for which title insurance is being issued.

CONTRACT FOR CONVEYANCE OF REAL PROPERTY FOR NON-RESIDENTS

This bill requires a contract for conveyance of real property to a purchaser who is not a resident of this state to include the designation of an agent for the purchaser within the state for the purpose of acknowledging or receiving service of process an
d upon whom process may be served, in all proceedings that may be instituted against the purchaser in any court of this state, or in any court of the United States in this state.

This bill prohibits the register of deeds from recording a deed for conveyance of real property unless the deed has been prepared by an attorney licensed in this state. The attorney must include the attorney's board of professional responsibility number
on the deed. A deed recorded on or after July 1, 2026, that was not prepared by an attorney may be declared void.

ON MARCH 30, 2026, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 1970, AS AMENDED.

AMENDMENT #1 rewrites the bill to, instead, require a description of real property contained within a deed of conveyance of a property not previously described in a recorded instrument to be prepared by a registered land surveyor, or by a licensed attorn
ey utilizing a survey prepared by a registered land surveyor. Present law requires such property to be prepared only by a registered land surveyor.

Current Bill Text

SENATE BILL 1985
By Taylor

HOUSE BILL 1970
By Farmer
HB1970
009375
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 8;
Title 23; Title 39; Title 45; Title 47, Chapter 18;
Title 56; Title 62 and Title 66, relative to real
property.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. This act is known and may be cited as the "Tennessee Real Estate
Consumer Fraud Protection Act."
SECTION 2. Tennessee Code Annotated, Section 56-35-109, is amended by deleting
the section and substituting:
Any foreign title insurance company desiring to transact a title insurance
business in this state must maintain an office within this state so long as any liability
remains outstanding against the insurer in this state.
SECTION 3. Tennessee Code Annotated, Title 56, Chapter 35, Part 1, is amended by
adding the following new section:
The premium for title insurance must be paid equally by the buyer and the seller
of the real property for which title insurance is being issued.
SECTION 4. Tennessee Code Annotated, Title 66, Chapter 4, is amended by adding
the following new part:
66-4-501.
A contract for conveyance of real property to a purchaser who is not a resident of
Tennessee must include the designation of an agent for the purchaser within the state
for the purpose of acknowledging or receiving service of process and upon whom
process may be served, in all proceedings that may be instituted against the purchaser
in any court of this state, or in any court of the United States in this state.

- 2 - 009375

SECTION 5. Tennessee Code Annotated, Title 8, Chapter 13, is amended by adding
the following new section:
8-13-120.
The register of deeds shall not record a deed for conveyance of real property
unless the deed has been prepared by an attorney licensed in this state. The attorney
shall include the attorney's board of professional responsibility number on the deed. A
deed recorded on or after July 1, 2026, that was not prepared by an attorney may be
declared void.
SECTION 6. This act takes effect July 1, 2026, the public welfare requiring it.