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SB 1079

Real Property - As enacted, adds requirements for declarant access to and use of deposits made in connection with the purchase or reservation of a condominium unit; makes other similar changes. - Amends TCA Title 66.

114th Regular Session (2025-2026)

Tennessee law now imposes new restrictions on how condominium developers can access and use buyer deposits for condo unit purchases and reservations, effective July 1, 2025.

Pub. Ch. 180
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Bill Summary · SB 1079

Legislative bill overview

SB 1079 modifies Tennessee's condominium laws (TCA Title 66) to establish new requirements governing how condominium developers (declarants) can access and use deposits from purchasers or those making reservations for condo units. The bill became effective July 1, 2025, and represents a regulatory change to developer financial obligations during pre-construction phases.

Why is this important

Condo purchase deposits represent significant consumer money held during the development phase. These amendments directly affect whether and how developers can use buyer deposits before unit delivery, which impacts consumer financial protection and developer cash flow management. This is particularly relevant in growing real estate markets where condo developments require substantial pre-sales funding.

Potential points of contention

  • Developer liquidity vs. consumer protection: The specific access and use permissions granted to declarants will either facilitate development financing (benefiting developers) or restrict it (protecting buyers from losing deposits if projects fail)
  • Deposit security mechanisms: Unclear whether the amendments strengthen or weaken existing escrow or trust account requirements that protect deposits from developer misuse or bankruptcy
  • Market impact on pricing: Changes affecting developer access to deposits could influence condo pricing, availability, and development timelines depending on how restrictive the new requirements are

Compiled from official sources — confirm details with the bill’s official record.

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