Tennessee HB0871 amends escrow fund regulations for condominium projects, ensuring funds are held securely and used appropriately.
Tennessee HB0871 modifies the use of escrow funds for condominium projects, requiring that deposits up to 10% of the purchase price be held in escrow until construction completion. The escrow must be managed by a licensed title insurance company, attorney, licensed real estate broker, or independent bonded escrow company. Funds exceeding 10% can be used for construction costs if the contract permits and a surety bond or irrevocable letter of credit is provided. The act takes effect July 1, 2025, and applies to contracts entered into or amended on or after that date.
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- Core Provisions
- Implementation
- Impact
- Legal Framework
- Critical Issues
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