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SB 2273

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 Richard Briggs

Extends real estate wholesalers' minimum seller notification period for contract assignments from three to five business days, giving sellers more advance notice before ownership interest transfers.

Pub. Ch. 727
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Bill Summary · SB 2273

Legislative bill overview

SB 2273 extends the minimum notice period that real estate wholesalers must give sellers when transferring their purchase contract interest from three business days to five business days. This applies specifically to wholesaling transactions under Tennessee Code Annotated Title 66, affecting how quickly assignment notifications must be delivered.

Why is this important

Real estate wholesaling involves buying contracts and quickly reselling those rights to other investors. The notice period determines how much advance warning sellers receive before a contract assignment becomes effective. This extra two-business-day buffer could provide sellers more time to review transaction details or object to the assignment before it takes legal effect.

Potential points of contention

  • Seller protection vs. transaction speed: Extending notice periods protects sellers from surprise assignments but may slow down wholesale deals and reduce profit margins for wholesalers operating on tight timelines
  • Enforceability questions: Unclear whether the expanded notice period applies retroactively to existing contracts or creates new compliance burdens for wholesalers already operating under three-day standards
  • Real-world gap: Five business days may still be insufficient for sellers to meaningfully respond, raising questions about whether this substantively improves protection or is merely symbolic

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

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