Selling and buying without an agent in Tennessee

Who runs your closing

Tennessee does not require a lawyer to close a home sale. It is a title company state: in practice a title or escrow company runs most residential closings, the norm in Nashville, Memphis, and Knoxville. The company searches title, holds earnest money and funds in escrow, prepares the deed and settlement documents, coordinates the signing, and records the deed with the county Register of Deeds. In some rural counties an attorney handles the closing instead, and you can always hire one to review your contract or deed. As a for sale by owner seller, you can open escrow directly with a title company once you have a signed purchase agreement, just as an agent would.

What you must disclose

Tennessee law gives you two paths. Under Tenn. Code Ann. sec. 66-5-202 you provide buyers a residential property condition disclosure statement, or, only if the buyer waives that disclosure, a disclaimer statement selling the property “as is” with no representations. The standard tool is the Tennessee Residential Property Condition Disclosure, published by Tennessee Realtors as form RF201 and modeled on the statutory form in sec. 66-5-210. There is no official state .gov version; RF201 comes from Tennessee Realtors. Whichever path you take, sec. 66-5-212 requires you to specifically disclose any known sinkhole, any exterior injection well on the property, and the results of any percolation or soil absorption tests. Deliver your disclosure or disclaimer before you accept an offer, and keep a signed copy.

Transfer taxes

Tennessee charges a state realty transfer tax of $0.37 per $100 under Tenn. Code Ann. sec. 67-4-409. It is collected when the deed is recorded, based on the greater of the consideration paid or the property’s value. On a $350,000 sale that works out to about $1,295. The statute places the tax on the buyer as grantee, but the point is negotiable and can be assigned to either side in the purchase contract. Confirm the current rate and any local recording fees with the Tennessee Department of Revenue and your county Register of Deeds.

The bottom line for doing it yourself

Selling without an agent in Tennessee is workable. Your two real jobs are getting the disclosure right and letting a title company carry the closing. Fill out the RF201 disclosure honestly, or use the “as is” disclaimer only if your buyer agrees, and never leave out a known sinkhole, injection well, or percolation result. Line up a reputable title or escrow company early, price your home from recent comparable sales, and settle in writing who pays the transfer tax. Do those things and you keep the commission you would have paid a listing agent.

This guide is general information, not legal advice. Consult a Tennessee real estate attorney or the Department of Revenue for your specific situation.