TN SB0394

Purchasers or borrowers in Tennessee real property transactions gain the exclusive right to select the settlement agent, subject to lender approval, with that agent authorized to handle escrow, closing services, title insurance, and title clearing functions

Sellers are prohibited from requiring purchasers to use a particular settlement agent or conditioning any contractual obligations on the purchaser's choice of settlement agent

The purchaser's right to select a settlement agent and the restrictions on sellers cannot be waived or modified by any party to the transaction

Sellers may retain a licensed attorney for representation limited to deed preparation, fee negotiation, document review, and legal advice on the closing process

Settlement agents must obtain written consent from a seller's attorney before collecting any fees from a represented seller; effective July 1, 2025