All Roll Calls
Yes: 121 • No: 13
TennesseeSB 1079114th General Assembly (2025-2026)SenateWALLET
AN ACT to amend Tennessee Code Annotated, Title 66, relative to the use of escrow funds for condominium projects.
Sponsored By: Sponsor information unavailable
Signed by Governor
Real Property
Personalized for You
How does this bill affect your finances?
Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Escrow protections for Tennessee condo buyers
These rules cover Tennessee condo purchase or reservation contracts entered into or amended on or after July 1, 2025. Deposits up to the first 10% of the purchase price must go into a dedicated Tennessee escrow account. A licensed title insurance company or agent, attorney, licensed real estate broker, or independent bonded escrow company must manage it. The account must be at an institution with government-insured accounts. Before construction starts, the developer can use this money only for actual construction and development costs, with full-deposit repayment protection. That protection must cover late delivery through a licensed surety company's bond, irrevocable letter of credit, or equivalent financial guarantee. Actual costs include materials, labor, demolition, site clearing, permits, impact fees, utility reservation fees, and architectural, engineering, and surveying fees. They also include costs directly tied to the project's related easements or property rights. Deposits above 10% can go into separate escrow and pay actual project costs only when the contract allows it. Those deposits must be received after construction starts and before it ends. They cannot pay salaries, commissions, real estate licensee expenses, or advertising. Buyers must initial contracts allowing deposit use. Contracts must state that deposits may fund construction under Tennessee Code Annotated, § 66-27-506. This notice must use bold type or capital letters, at least as large as the largest first-page type. The initial escrow money or its guarantee must remain until closing, payment to the developer after buyer default, or refund. It can also end when funds are deposited with a court to resolve competing claims or paid under a final court order.
Condo buyers face limits recovering from lenders
These rules cover Tennessee condo purchase or reservation contracts entered into or amended on or after July 1, 2025. Third-party lenders are generally not liable for how deposits are used or returned, or whether adequate deposit security was obtained. An exception applies when a lender takes ownership or control of the project through foreclosure or another remedy. Even then, liability covers only deposits not already paid out and spent. This limits buyers' options for recovering deposit money from a lender.
Sponsors & Cosponsors
Sponsors
There is no primary sponsor on record.
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 3/27/2025
FLOOR VOTE: REGULAR CALENDAR PASSAGE ON THIRD CONSIDERATION 3/27/2025
Yes: 85 • No: 10
Senate vote • 3/3/2025
FLOOR VOTE: as Amended Third Consideration 3/3/2025
Yes: 28 • No: 3
Senate vote • 2/25/2025
SENATE COMMERCE AND LABOR COMMITTEE
Yes: 8 • No: 0
Bill Text
Enrolled / Public Chapter
Fiscal Note
HA0046
Introduced
SA0029
Related Bills
SB 0855, AN ACT to amend Tennessee Code Annotated, Title 4; Title 5; Title 6; Title 7; Title 8; Title 12; Title 13; Title 29; Title 54; Title 64; Title 65; Title 68 and Title 69, relative to municipal utilities.
SB 0539, AN ACT to amend Tennessee Code Annotated, Title 7; Title 13; Title 48; Title 49; Title 67 and Title 68, relative to low-income housing.
SB 0254, AN ACT to amend Tennessee Code Annotated, Title 38; Title 39; Title 40 and Title 55, relative to criminal law.
SB 0198, AN ACT to amend Tennessee Code Annotated, Title 67, relative to taxes.
HB 2670, AN ACT to amend Chapter 33 of the Private Acts of 1985; as amended by Chapter 85 of the Private Acts of 2004; and any other acts amendatory thereto, relative to the City of Gleason.
HB 2656, AN ACT to amend Chapter 325 of the Private Acts of 1945; as amended by Chapter 335 of the Private Acts of 1968; Chapter 282 of the Private Acts of 1972; Chapter 23 of the Private Acts of 1973; Chapter 93 of the Private Acts of 1983; Chapter 83 of the Private Acts of 1985; Chapter 218 of the Private Acts of 1990; Chapter 11 of the Private Acts of 1991; Chapter 65 of the Private Acts of 1993; Chapter 90 of the Private Acts of 2000; Chapter 77 of the Private Acts of 2002; Chapter 136 of the Private Acts of 2002; Chapter 27 of the Private Acts of 2011; Chapter 41 of the Private Acts of 2022; and any other acts amendatory thereto, relative to the City of Lafayette.