Tennessee Home Seller Disclosure Requirements: What You Must Reveal
If you are selling a home in Tennessee, state law requires you to tell the buyer what you know about the condition of your property — and the specific requirements catch many sellers off guard. The Tennessee Residential Property Condition Disclosure Act (TCA 66-5-201 through 66-5-213) governs exactly what sellers must disclose, when they must disclose it, and what happens if they do not. Whether you are selling in Tullahoma, Winchester, Manchester, or any town across Coffee and Franklin County, this guide explains what you need to know before signing the disclosure form.
The Tennessee Disclosure Law: What It Requires
Under TCA 66-5-202, sellers of residential property (one to four dwelling units) must provide either a Residential Property Condition Disclosure Statement or a Residential Property Condition Disclaimer Statement to the buyer before the buyer accepts the purchase agreement. This is not optional — it is state law.
The Disclosure Statement is a multi-page form published by the Tennessee Association of Realtors that requires the seller to answer specific questions about the property's condition. The seller must complete the form in good faith based on their actual knowledge. The law does not require sellers to conduct independent inspections or hire professionals to investigate — you disclose what you know, not what you would know if you investigated.
That distinction is important. If you have lived in the home and your basement floods every spring, you must disclose it. If there is a hidden defect you genuinely do not know about, you are not liable for failing to disclose it. But if you know about a problem and intentionally conceal it or lie on the disclosure form, you are exposing yourself to legal liability that can far exceed the cost of the repair.
What the Disclosure Form Covers
The Tennessee Residential Property Condition Disclosure form is comprehensive. Here are the major categories and the specific items that trip up Middle Tennessee sellers most often.
Structural components: Foundation condition, basement or crawlspace water intrusion, floor settling or unevenness, wall cracks, roof leaks or damage, chimney condition, and any structural repairs that have been made. In our market, crawlspace moisture is the most common disclosure issue — if you have ever had standing water, mold remediation, or crawlspace encapsulation done, you must disclose it.
Mechanical systems: Age and condition of the HVAC system, water heater, electrical panel, and plumbing. If your heat pump is 14 years old and struggles to keep up in January, that is a condition you should disclose. If you have had the system repaired frequently, note it. If the electrical panel is a Federal Pacific or Zinsco (known fire hazards), disclose the brand.
Water and sewer: Whether the property is on public water or a private well. Whether it connects to a municipal sewer or a septic system. If on septic, when the tank was last pumped, any known issues with the drain field, and whether the system has ever failed or been repaired. Septic system problems are among the most expensive issues in residential real estate — a new system can cost $10,000 to $30,000 — and failure to disclose known septic issues is one of the most common sources of post-sale litigation in rural Tennessee.
Environmental hazards: Known presence of asbestos, lead paint (required on pre-1978 homes by federal law), radon testing results, underground storage tanks, mold or mildew, and any environmental contamination. If you have had a radon test and the results were above 4.0 pCi/L, disclose it — even if you installed a mitigation system afterward. If you know about asbestos in floor tiles or pipe insulation, disclose it.
Roof: Age of the roof, known leaks past or present, whether the roof has been repaired or replaced and when, number of shingle layers (building code limits this), and any insurance claims related to roof damage.
Flooding and drainage: Whether the property has ever flooded, whether it is in a FEMA flood zone, drainage problems on the property, and any water intrusion from any source. Properties near Tims Ford Lake, the Elk River, and in low-lying areas of Decherd and Cowan deserve particular attention on this section.
Remodeling and permits: Any remodeling, additions, or repairs done to the property and whether permits were obtained and inspections passed. Unpermitted work is a growing issue in our market — sellers who added a bathroom, enclosed a porch, or finished a basement without permits need to disclose this. Unpermitted work can create problems for the buyer's insurance, appraisal, and future resale.
Legal issues: Boundary disputes, easements, encroachments, HOA obligations, and any pending or threatened litigation involving the property.
Termites and pests: Known termite damage, active or previous infestations, treatments performed, and whether a termite bond is in place. Given that Tennessee is in Termite Infestation Probability Zone 2 (moderate to heavy), this section matters. If you have had termite treatment, disclose the provider, date, and whether the bond is active and transferable.
The Disclaimer Option: Selling As-Is
Tennessee law allows sellers to provide a Disclaimer Statement instead of the full Disclosure Statement — but this is not a free pass to hide problems. The Disclaimer Statement is essentially the seller saying they are making no representations about the property's condition and selling as-is. However, even with a disclaimer, the seller must still answer a series of specific questions on the Disclaimer form.
The buyer must agree to waive their right to the full disclosure in order for the seller to use the disclaimer option. In practice, most buyers in our market expect the full Disclosure Statement, and offering only a disclaimer can raise red flags that make buyers nervous or lead them to submit lower offers.
Critically, even with an as-is disclaimer, sellers remain liable for failing to disclose known material defects. Tennessee law creates a cause of action against the seller if they had knowledge of specific conditions — including structural defects, environmental hazards, and water intrusion — and failed to disclose them. Selling as-is does not protect a seller who actively conceals known problems.
Exemptions from the Disclosure Requirement
Certain property transfers are exempt from Tennessee's disclosure requirements. These include transfers by court order (foreclosure, divorce decree, probate), transfers to or from a government entity, transfers at public auction, new construction sold with a written builder warranty, and transfers where the owner has not lived on the property within the last three years.
The last exemption is the one that comes up most often in our market. If you inherited a property and never lived there, or if you are selling a rental property you have never occupied, you may qualify for the exemption. However, even exempt sellers cannot actively misrepresent the property's condition. The exemption removes the obligation to fill out the disclosure form — it does not remove the obligation to be honest.
Common Disclosure Mistakes Middle Tennessee Sellers Make
Minimizing crawlspace moisture history. In Coffee and Franklin County, crawlspace moisture is so common that many homeowners treat it as normal and fail to disclose it adequately. If you have had water in the crawlspace, mold remediation, a vapor barrier installed, or a dehumidifier added, disclose all of it. The buyer's home inspector will likely find evidence of previous moisture anyway — better to disclose it upfront than to have the buyer discover it and question your honesty on everything else.
Forgetting about past insurance claims. If you filed a homeowner's insurance claim for water damage, roof damage, or fire damage, the claim is in the CLUE database and the buyer's insurance company will find it. Disclose any claims you have filed — the buyer will discover them regardless.
Not disclosing unpermitted work. That bonus room over the garage, the bathroom added in the basement, the deck built without a permit — these all need to be disclosed. Unpermitted work affects the buyer's insurance, their appraisal (unpermitted square footage may not be counted), and their ability to resell the property. Disclosing upfront avoids legal problems later.
Omitting known neighborhood issues. While you are not required to disclose every inconvenience, material issues affecting the property should be noted. If the neighbor's property floods and the water flows onto your lot, that is a disclosure item. If there is a planned road widening or commercial development that will affect the property, disclose it if you know about it.
Failing to update the disclosure after acceptance. If a new issue arises between the time you sign the disclosure and closing — a pipe bursts, the HVAC fails, you discover termite damage — you are required to update the disclosure. Do not assume you can address the problem silently. Notify the buyer and their agent in writing.
What Happens If You Do Not Disclose
If a buyer discovers after closing that you knew about a material defect and failed to disclose it, they can file a lawsuit seeking damages. Tennessee law provides for recovery of actual damages, court costs, and in some cases, attorney's fees. The buyer must prove that the seller knew about the defect and either intentionally failed to disclose it or misrepresented it on the disclosure form.
In practice, the most common post-sale disclosure disputes in Middle Tennessee involve undisclosed water intrusion, concealed foundation problems, undisclosed septic failures, and material misrepresentation about the age or condition of major systems. These cases are expensive to litigate and expensive to settle — far more expensive than simply disclosing the issue and pricing the home accordingly.
How to Complete the Disclosure Form Correctly
Be honest. The disclosure form is not a marketing document. Answer every question truthfully based on what you know. If you are unsure about something, say so — the form allows you to indicate uncertainty.
Be thorough. Do not leave questions blank. A blank answer is ambiguous and can be interpreted as evasion. If the answer is genuinely unknown, write "unknown" or "not sure." If the answer is not applicable, write "N/A."
Provide documentation. If you have had repairs done — roof replacement, HVAC installation, crawlspace work, termite treatment — attach the receipts, warranties, and contractor information. Documentation shows transparency and gives the buyer confidence that the work was done properly.
Have your agent review the form. Before you sign, have your real estate agent review your answers. An experienced agent knows which issues are most likely to create problems and can help you ensure your answers are complete without being unnecessarily alarming.
Keep a copy. Retain a signed copy of the disclosure form for your records. If a dispute arises after closing, your signed disclosure is your primary defense.
FAQ
Do I have to disclose a death in the home?
Tennessee law does not specifically require disclosure of a death in the home, including natural death, suicide, or homicide. However, if a buyer asks directly, you should answer honestly. If the death resulted in property damage (for example, a fire), the damage and repairs should be disclosed.
Do I have to disclose if my home has been used as a meth lab?
Yes. Tennessee requires disclosure of known methamphetamine contamination. Properties that have been used for meth production may require professional decontamination before they can be sold for residential use.
What if I bought the house as-is and do not know about its condition?
You disclose what you know from your ownership. If you bought as-is and have lived in the home, you have knowledge of conditions you experienced — leaks, system failures, pest issues. If you have never occupied the property, you may qualify for the three-year occupancy exemption.
Can a buyer sue me if the home inspection reveals problems I did not disclose?
Only if you knew about the problems and intentionally failed to disclose them. If a problem exists that you genuinely did not know about, you are not liable. The disclosure requires good faith reporting of known conditions, not a guarantee of the property's condition.
Should I fix problems before listing or just disclose them?
It depends on the cost and the impact on buyer perception. Minor issues (a dripping faucet, a missing handrail) are worth fixing before listing. Major issues (roof at end of life, aging HVAC) are better disclosed and priced into the listing price. I help my sellers make this determination based on what generates the best net return.
Sell With Confidence — Disclose With Accuracy
Proper disclosure protects you legally, builds buyer trust, and leads to smoother transactions. I walk every seller through the disclosure form question by question to make sure nothing is missed and nothing is overstated. Transparency is the foundation of a successful sale.
Contact me for a seller consultation →