Tennessee SB1079 amends the use of escrow funds for condominium projects.
Tennessee SB1079 modifies the use of escrow funds for condominium projects by requiring that the first ten percent of the purchase price be placed in escrow. The escrow must be held by a licensed title insurance company, attorney, licensed real estate broker, or independent bonded escrow company. The escrow must be in an insured institution. The declarant can access the funds only if a surety bond or irrevocable letter of credit is provided. The funds must remain in escrow until delivered to the declarant, refunded to the purchaser, or disbursed by a court. The act takes effect July 1, 2025.
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