Tennessee 2025-2026 Regular Session

Tennessee Senate Bill SB0896 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	HOUSE BILL 986
3	3	By Capley
4	4
5	5	SENATE BILL 896
6	6	By Walley
7	7
8	8
9	9	SB0896
10	10	002453
11	11	- 1 -
12	12
13	13	AN ACT to amend Tennessee Code Annotated, Title 66,
14	14	Chapter 1, relative to real property.
15	15
16	16	WHEREAS, the members of this General Assembly find that the common law estates of
17	17	fee simple determinable, fee simple subject to condition subsequent, and fee simple subject to
18	18	executory limitation are ancient concepts, and reverter and forfeiture provisions of unlimited
19	19	duration in the conveyance of any interest in real property constitute an unreasonable restraint
20	20	on alienation and are contrary to the policy of this State; and
21	21	WHEREAS, the members of this General Assembly find that it is in the best interests of
22	22	the citizens of this State that the common law estates of fee simple determinable, fee simple
23	23	subject to condition subsequent, and fee simple subject to executory limitation be abolished for
24	24	the surety of title to real property; now, therefore,
25	25	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
26	26	SECTION 1. Tennessee Code Annotated, Title 66, Chapter 1, Part 1, is amended by
27	27	adding the following as a new section:
28	28	(a) Reverter or forfeiture provisions of unlimited duration contained in a deed,
29	29	will, or other document establishing the common law estates of fee simple determinable,
30	30	fee simple subject to condition subsequent, and fee simple subject to executory
31	31	limitation executed more than seventy-five (75) years prior to July 1, 2025, are abolished
32	32	and unenforceable.
33	33	(b)
34	34	(1) Reverter and forfeiture provisions contained in a conveyance of real
35	35	property by deed, will, or other document establishing an interest under the
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37	37
38	38	- 2 - 002453
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40	40	common law estates of fee simple determinable, fee simple subject to condition
41	41	subsequent, and fee simple subject to executory limitation terminate and become
42	42	unenforceable seventy-five (75) years from the date of the conveyance
43	43	containing the reverter or forfeiture provision.
44	44	(2) Notwithstanding subdivision (b)(1), past rights vested in deeds as of
45	45	July 1, 2025, are converted to a fee simple absolute at the end of seventy-five
46	46	(75) years from the date created unless a sworn statement containing the name
47	47	of the current owner of the property, the estate sought to be preserved, and a
48	48	description of the property is filed in the register of deed's office of the county in
49	49	which the property is located by July 1, 2026, to preserve the right. The sworn
50	50	statement extends the reverter provision one (1) time for a period of five (5) years
51	51	from July 1, 2025, or from the expiration of the seventy-five (75) year period,
52	52	whichever occurs first, at which time the interest will become a fee simple
53	53	absolute in the owner of the property.
54	54	(c) A reverter or forfeiture provision contained in a deed, will, or other document
55	55	conveying an interest in real property and purporting to establish the common law
56	56	estates of fee simple determinable, fee simple subject to condition subsequent, and fee
57	57	simple subject to executory limitation, executed on or after July 1, 2025, is invalid and
58	58	unenforceable.
59	59	(d) Reversionary estates terminated or prohibited by this section results in title in
60	60	the grantee or recipient being fee simple absolute. An action must not be maintained to
61	61	recover an interest or to forfeit an interest upon the termination of the reversionary
62	62	interest.
63	63	SECTION 2. This act takes effect July 1, 2025, the public welfare requiring it.