Real Property

Plain English Breakdown

The candidate explanation included a requirement for deed descriptions which is not supported by the official source material.

Tennessee Real Estate Consumer Fraud Protection Act

This bill changes rules for foreign title insurance companies, requires equal payment of title insurance premiums by buyers and sellers, mandates an in-state agent for non-resident property purchasers, and restricts deed recording to 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 that the premium for title insurance be split equally between buyers and sellers when purchasing real property in Tennessee.
• Requiring 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, with specific requirements for including 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

Insurance that protects against financial loss due to issues with the title to a property.

Register of Deeds

An official who records documents related to real estate transactions in a county or state.

Limits and Unknowns

• The bill does not specify what happens if a deed is recorded without being prepared by an attorney.
• It's unclear how the requirement for equal payment of title insurance premiums will be enforced.
• The impact on non-resident purchasers who cannot find an in-state agent is not addressed.

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

HOUSE BILL 1970
By Farmer

SENATE BILL 1985
By Taylor
SB1985
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.