Real Property

Plain English Breakdown

The official source material does not provide specific details on how existing rental property owners who are institutional buyers will be impacted by the new registration requirements.

Real Property Registration for Business Entities

This bill requires certain business entities to register their purchase or acquisition of residential rental property in Tennessee with the secretary of state and imposes penalties for non-compliance.

What This Bill Does

• Defines 'institutional buyer' as a corporation, limited liability company, limited partnership, or limited liability partnership that buys or acquires residential rental property in Tennessee.
• Requires institutional buyers to register their purchases or acquisitions with the secretary of state after January 1, 2027.
• Specifies that registration must include details such as the name and address of the buyer, addresses of properties owned, contact information for a responsible person, and number of rental units.
• Allows the secretary of state to impose civil penalties up to $2,000 per violation if institutional buyers fail to register on time.
• Makes registration records available to the public through an online searchable database.

Who It Names or Affects

• Corporations, limited liability companies, limited partnerships, and limited liability partnerships that buy or acquire residential rental property in Tennessee.

Terms To Know

Institutional buyer

A business entity such as a corporation, LLC, LLP, or LP that purchases or acquires residential rental property in Tennessee.

Residential rental property

Real estate with one or more units leased for residential purposes.

Limits and Unknowns

• The bill does not specify what happens if a business entity fails to comply after being penalized.
• It is unclear how the new registration requirements will impact existing rental property owners who are institutional buyers.
• The exact form and manner of registration, as well as additional rules for enforcement, have 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

HOUSE BILL 1703
By Bricken

SENATE BILL 1693
By Walley
SB1693
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.