Seller-Financing for Residential Property in Tennessee

  Can the owner of residential investment property offer seller-financing in the State of Tennessee? The answer is not entirely clear. The Tennessee Residential Lending, Brokerage and Servicing Act (T.C.A. § 45-13-101, et seq.) had raised questions about the viability of seller-financing for residential properties that have not been occupied by the seller. Thanks to an amendment recently passed in the Tennessee legislature and a rule published by HUD, individuals and entities that engage in one-off or a very limited number of deals can provide seller-financing without complying with the act’s licensing requirements. The background and details are below. The Tennessee …

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