Understanding Tennessee’s Seller‑Disclosure Obligations

Selling a home in Tennessee isn’t simply a matter of finding a buyer and agreeing on a price. The Volunteer State is a seller‑disclosure state. Under the Tennessee Residential Property Disclosure Act, most residential sellers (one to four units) must provide a written disclosure statement before a purchase contract is signed. This form asks sellers to list any known material defects—everything from roof leaks to boundary disputes—and it must be completed in good faith. Tennessee law gives buyers who discover undisclosed defects the right to sue for damages, so transparency protects both buyer and seller. While the form covers a broad range of conditions, this article highlights one area that sellers often overlook: homeowners’ association (HOA) information, including fees, transfer charges, and restrictive covenants.

A quick refresher on disclosure rules

• Disclosure or disclaimer? Tennessee requires sellers to either provide a detailed Residential Property Condition Disclosure or, if the buyer agrees, sign a disclaimer stating that the property is sold “as is” with no representations. Even when selling “as is,” the seller must be truthful about what they know.

• Material defects: The disclosure must list known defects and latent problems (foundation issues, mold, drainage problems, etc.). Sellers can answer “unknown” if they genuinely lack information, but they may not mislead or conceal problems.

• Penalties: Failing to disclose can lead to lawsuits for damages. Tennessee law also requires that disclosures be made in good faith, so honesty is essential even if it affects the sale price.