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HB 2495

Real Property - As enacted, provides that a provision of a document requiring a transferor or transferee to pay a fee, charge, assessment, dues, contribution, deposit, or other amount to purchase, issue, reissue, maintain, or transfer a club membership that is related to the real property or the community in which the property is sited is not a transfer fee covenant. - Amends TCA Title 66.

114th Regular Session (2025-2026) Introduced by Andrew Farmer

Tennessee law increases real estate wholesalers' notice period to sellers before contract assignment from three to five business days, prioritizing seller transparency in property transactions.

Comp. became Pub. Ch. 727
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Bill Summary · HB 2495

Legislative bill overview

HB 2495 extends the minimum notice period that real estate wholesalers must give sellers before assigning their purchase contract from three business days to five business days. This applies specifically to wholesaling transactions under Tennessee Code Annotated Title 66, affecting the timeline for notifying sellers of contract transfers.

Why is this important

Real estate wholesaling involves buying properties under contract and reselling those contracts (or assignments) to other buyers, often without ever taking title. The notice period determines how much advance warning sellers receive before a contract is transferred to a new party, which affects transparency and gives sellers time to understand who ultimately owns their transaction.

Potential points of contention

  • Wholesaler burden: Extending the notice period by two days may compress timelines for wholesalers operating in fast-moving markets or with tight funding deadlines, potentially making deals more difficult to execute
  • Seller protection vs. market efficiency: While longer notice periods could give sellers more time to review assignments, critics may argue this creates administrative friction without meaningfully changing outcomes in a competitive market
  • Definition ambiguity: The bill's effectiveness depends on how "wholesaling" and "assignment" are defined in practice; unclear definitions could create enforcement challenges or unintended loopholes

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

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