Forms Updated to Reflect New Disclosure

Members, please be aware of a new state law that will require certain sellers to make disclosure to buyers. The bill posted HERE (SB178/HB165) has been signed by Gov. Bill Lee and is effective upon becoming law.

This legislation stems from an issue in Hamilton County (but could apply in other areas of TN). Parts of Hamilton County are currently under a sewer moratorium. This bill would allow properties within the moratorium to be granted a permit for a subsurface sewage disposal system (septic tank). Sellers who received a permit for a septic tank under this new law will be required to disclose to buyers the potential future obligation to connect to the public sewer system (once the moratorium is lifted).

It is recommended that any transaction which had not closed prior to April 9 be updated. If any sales are pending, it may be easiest and safest to have sellers fill out a new disclosure form.

In response to the new law, our Residential Forms Committee has edited several Tennessee REALTORS® forms to include this new disclosure. The disclosure applies to exempt sellers and must still be made by sellers using a disclaimer form. As such, the disclosure has been added to forms RF201RF203RF204 and RF205[Access all forms HERE; member login required.]

If you have questions about the new law, please contact the Tennessee REALTORS® Legal & Ethics hotline at 1-800-899-5297.

Tennessee REALTORS® is one of the state’s largest and most influential trade associations. Consisting of 21 local associations and 27,000+ members, the association provides a variety of services including legislative and regulatory advocacy, professional development, professional-standards training, and transaction-management solutions. To learn more, visit