State guide

Buying or Selling a Home in Tennessee: What You Need to Know

Tennessee is a disclosure-friendly state where sellers usually share what they know about a home before you sign a contract, but they can also sell as-is if both sides agree.

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TL;DR

Tennessee is a disclosure-friendly state where sellers usually share what they know about a home before you sign a contract, but they can also sell as-is if both sides agree. The state has no income tax, so there's no extra state tax on home-sale profits, and a modest transfer tax of $0.37 per $100 of the sale price. Real estate agents follow strict rules from the Tennessee Real Estate Commission, including handing every buyer or seller a plain-English explanation of how representation works at the very first meeting.

9 things every Tennessee buyer or seller should know

  • In Tennessee, sellers of homes with one to four units must fill out a disclosure form before a buyer signs a contract. The Tennessee Residential Property Disclosure Act requires sellers to share what they actually know about things like the roof, plumbing, electrical, foundation, flooding history, and hazardous materials. Sellers don't have to inspect for hidden problems, but deliberately hiding a known defect can lead to legal liability.

  • Tennessee gives home sellers a second option called the Residential Property Disclaimer Statement. Instead of completing the standard disclosure form, a seller can state in writing that they are selling 'as-is' and making no claims about the home's condition. The buyer signs that they understand and accept full responsibility for inspecting the property.

  • Tennessee charges a real estate transfer tax of $0.37 for every $100 of the sale price when the deed is recorded at the county. On a $400,000 home, that comes out to about $1,480. By local custom, the seller pays this tax at closing, though the purchase contract can shift it to the buyer if both sides agree.

  • Since August 17, 2024, any buyer in Tennessee who wants an agent to show them a home must first sign a written buyer representation agreement. This rule comes from the NAR settlement and applies before the very first home tour. The agreement must list a specific compensation amount or percentage — vague language or blank fields are not allowed.

  • Tennessee does not require sellers or real estate agents to tell a buyer if a registered sex offender lives near a home they're considering. The Tennessee Bureau of Investigation maintains a public sex offender registry that any buyer can search by address. If proximity to registered offenders matters to you, plan to check the registry yourself as part of your own research.

  • Every Tennessee real estate agent must give consumers a brochure called 'Working with a Real Estate Professional' (often shortened to WWREP) the first time there's a meaningful conversation about buying or selling. The brochure explains the different ways an agent can represent someone in Tennessee. Receiving it at the closing table is too late — it's meant to inform people upfront.

  • Tennessee recognizes four ways a real estate agent can work with you: single agent (works only for you), dual agent (one agent represents both buyer and seller), designated agent (different agents from the same firm represent each side), and facilitator (helps a deal close without representing anyone). Your agent must confirm which role they're playing on a state-approved form before any offer is written.

  • Tennessee does not have a state income tax, and the old Hall Income Tax on dividends and interest was fully repealed in 2021. That means there's no state-level tax on the profit from selling a Tennessee home, and no state nonresident withholding at closing for out-of-state sellers. Federal capital gains tax can still apply.

  • If a Tennessee seller actually knows a home was used to manufacture methamphetamine, state law requires them to disclose that fact to any prospective buyer before a contract is signed. The same duty applies to a seller's agent who has actual knowledge. Sellers don't have to test for meth contamination, but once they're told about it, the duty to disclose kicks in.

The guides

Common questions

Do I have to sign a buyer representation agreement before touring homes in Tennessee?
Yes. Since August 17, 2024, the NAR settlement requires any agent who shows you a home listed on the MLS to have a written buyer representation agreement signed first. The agreement has to list a specific compensation amount or percentage, plus how long it lasts and what area or property types it covers. You can negotiate the terms — agent compensation is not set by law.
Can I sell my Tennessee home as-is without filling out a disclosure form?
Yes. Tennessee lets sellers use the Residential Property Disclaimer Statement instead of the standard disclosure form. With the Disclaimer, you state in writing that you're making no representations about the home's condition, and the buyer signs that they understand. The buyer then takes on full responsibility for inspecting the property and discovering any issues.
What is the WWREP brochure and when should my agent give it to me?
WWREP stands for 'Working with a Real Estate Professional.' It's a state-approved handout that explains the different ways an agent can represent you in Tennessee — single agent, dual agent, designated agent, or facilitator. Your agent must give it to you at the first real conversation about your real estate needs, not later at closing.
How much is Tennessee's transfer tax when I sell my home?
Tennessee's realty transfer tax is $0.37 per $100 of the sale price. On a $400,000 sale, that works out to about $1,480, paid when the deed is recorded at the county. By local convention, the seller pays this tax at closing, though the purchase agreement can shift it to the buyer if both sides agree.
Does Tennessee require my real estate agent to tell me if a sex offender lives nearby?
No. Tennessee does not impose a duty on sellers or agents to disclose nearby registered sex offenders. The state's sex offender registry is maintained by the Tennessee Bureau of Investigation and is publicly searchable by address. If this is important to you, plan to run that search yourself before making an offer.
What does dual agency mean in a Tennessee home sale?
Dual agency is when the same real estate agent represents both the buyer and the seller in the same transaction. Tennessee allows it only if both parties give informed written consent before any offer is written. Because the agent owes loyalty to both sides, they can't fully advocate for either one — many consumers prefer single or designated agency for that reason.
Will I owe Tennessee state income tax on the profit from selling my home?
No. Tennessee has no state income tax on wages or capital gains, and the old Hall Income Tax on investment income was fully repealed in 2021. There's also no state nonresident withholding at a Tennessee closing for out-of-state sellers. You may still owe federal capital gains tax depending on your situation, so check with a tax professional.
What does a Tennessee seller have to disclose about underground storage tanks or sinkholes?
If you know about an underground storage tank on the property — active, abandoned, or already removed — Tennessee's residential disclosure form requires you to share that with the buyer. Known sinkholes or active karst features must also be disclosed as material defects, which is especially common in Middle and East Tennessee where karst bedrock is widespread. You don't have to investigate for hidden tanks or sinkholes, but you must disclose what you actually know.

Glossary

2 terms
NAR — National Association of Realtors
The national trade group for real-estate agents. The 2024 NAR settlement is the legal deal that changed how buyer's agents get paid.
MLS — Multiple Listing Service
The shared database agents use to list and find homes for sale. Most homes you'll see online started here.