HB 781 - SB 909
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 12, 2025
Fiscal Analyst: Justin Billingsley | Email: justin.billingsley@capitol.tn.gov | Phone: 615-741-2564
HB 781 - SB 909
SUMMARY OF BILL: Establishes that a buyer who enters into a contract with a seller to
purchase real property engages in the act of wholesaling the real property when the buyer, after
entering into such contract, assigns the buyer’s equitable interest in such property to a subsequent
purchaser for a higher price than the buyer paid for the real property. Requires certain disclosures by
property wholesalers and creates a cause of action for failure by such wholesalers to make such
disclosures. Requires any action brought for a violation of this act to occur within two years after the
execution of the contract for purchase and sale of the real property.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• The proposed legislation defines “equitable interest” as the right of a buyer to benefit or
profit from real property after the buyer has entered into a contract for the purchase or sale
of real property with a seller, but before the legal title has been transferred from the seller to
the buyer.
• This legislation will require a wholesaler of real property to disclose the following
information in writing to:
o A potential subsequent purchaser or assignee, the nature of the buyer's equitable
interest in the real property; and
o The seller of the property, the buyer's intent to market its equitable interest prior to
execution of the contract, and the effective date of any assignment of the buyer's
interest to a subsequent purchaser of the real property at least three business days
prior to the effective date of any assignment, if the contract allows for such
assignment.
• This legislation will primarily impact private parties to a contract for the purchase and sale
of real property.
• Any fiscal impact to state or local government is not significant.
• Any impact to the court system is estimated to be not significant.
HB 781 - SB 909 2
IMPACT TO COMMERCE:
NOT SIGNIFICANT
Assumptions:
• It is assumed the required disclosure will not significantly impact the execution of wholesale
real property contracts in this state.
• Additionally, this legislation is estimated to have no significant impact on the total number
of real properties that will be sold in the state.
• Any impact on commerce or jobs in this state is not significant.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director