What Tennessee law asks of a seller
Sales of most houses in Tennessee fall under the Residential Property Disclosure Act, found in the Tennessee Code at section 66-5-201 and the sections after it. In outline, the owner gives the buyer a written statement about the condition of the property, including material defects the owner knows of. The state's form asks directly whether the owner is aware of defects in the foundation, among other parts of the house.
The Act also allows some sales to proceed on a disclaimer in place of the full statement, where the buyer agrees to it. So the absence of a completed form is not evidence of a sound house. This page is a summary, not legal advice; your agent or a Tennessee real estate attorney can tell you how the Act applies to your sale.
The sinkhole rule
One requirement is stated separately and matters in limestone country. Under an amendment that took effect on July 1, 2024, a seller must disclose, in the contract or in writing before the contract is made, the presence of a known sinkhole on the property. The duty applies whether or not the sinkhole shows in the contour lines of the recorded plat. The law defines a sinkhole as an underground void formed by the dissolving of limestone or dolostone that causes the surface to subside.
What each side should do
If you are buying
- Read the disclosure form closely and ask about anything left blank
- Have your home inspector go into the crawl space or basement, not just look from the hatch
- If the inspector flags movement, get a structural engineer's opinion or a repair company's inspection during the inspection period
- Ask whether any warranty on past repairs passes to a new owner, and get the transfer steps in writing
If you are selling
- Disclose what you know, including repairs already made
- Gather the records: proposal, engineer's letter, permit and final inspection, warranty
- Consider an inspection before listing, so the conversation starts from facts
- Decide with your agent whether to repair first or sell with the issue disclosed
The paper trail a past repair should have
A repair that was done properly leaves documents behind it. When a house has had foundation work, ask for all of these:
- The contractor's proposal or contract, showing what was done and where
- The engineer's report or letter, if there was one
- The building permit and evidence that it was closed after inspection
- The written warranty and the conditions for transferring it
- Floor-level readings from before and after, if the company took them
Missing papers do not prove a bad repair, but they shift the burden onto a fresh inspection. The permits guide lists the offices that hold permit records.
Across the Georgia line
The Tennessee Act applies to property in Tennessee. For a house in Fort Oglethorpe, Ringgold or Rossville, Georgia's rules govern the sale, and a Georgia agent or attorney is the person to ask.