(a) The general assembly finds and declares that: (1) The public policy of this state favors the transferability of interests in real property free from unreasonable restraints on alienation and covenants or servitudes that do not touch and concern the property; and (2) A recorded service agreement violates this public policy by impairing the marketability of title to the affected real property and constitutes an unreasonable restraint on alienation, regardless of the duration of the contract or the amount of the consideration set forth in the agreement. (b) A recorded service agreement is void and unenforceable under this chapter if the agreement: (1) Purports to run with the land or to be binding on future owners of interests in the real property; (2) Allows for assignment of the right to provide services without notice to and the consent of the owner of residential real estate; or (3) Purports to create a lien, encumbrance, or other real property security interest. (c) This chapter does not impair: (1) The rights granted or applied involving a mechanic's or materialmen's lien under title 66, chapter 11; (2) The furnishing of a loan or other thing of value to be secured by real property as otherwise provided by law; (3) An agreement entered into by a nonprofit, mandatory membership organization comprised of owners of homes, condominiums, cooperatives, or manufactured homes; or (4) Any interest in real property created pursuant to a declaration, covenant, or other applicable law, pertaining to the oversight or management of real property. Added by 2023 Tenn. Acts, ch. 160, s 1, eff. 4/17/2023. (a) The general assembly finds and declares that: (1) The public policy of this state favors the transferability of interests in real property free from unreasonable restraints on alienation and covenants or servitudes that do not touch and concern the property; and (2) A recorded service agreement violates this public policy by impairing the marketability of title to the affected real property and constitutes an unreasonable restraint on alienation, regardless of the duration of the contract or the amount of the consideration set forth in the agreement. (b) A recorded service agreement is void and unenforceable under this chapter if the agreement: (1) Purports to run with the land or to be binding on future owners of interests in the real property; (2) Allows for assignment of the right to provide services without notice to and the consent of the owner of residential real estate; or (3) Purports to create a lien, encumbrance, or other real property security interest. (c) This chapter does not impair: (1) The rights granted or applied involving a mechanic's or materialmen's lien under title 66, chapter 11; (2) The furnishing of a loan or other thing of value to be secured by real property as otherwise provided by law; (3) An agreement entered into by a nonprofit, mandatory membership organization comprised of owners of homes, condominiums, cooperatives, or manufactured homes; or (4) Any interest in real property created pursuant to a declaration, covenant, or other applicable law, pertaining to the oversight or management of real property. Added by 2023 Tenn. Acts, ch. 160, s 1, eff. 4/17/2023. (a) The general assembly finds and declares that: (1) The public policy of this state favors the transferability of interests in real property free from unreasonable restraints on alienation and covenants or servitudes that do not touch and concern the property; and (2) A recorded service agreement violates this public policy by impairing the marketability of title to the affected real property and constitutes an unreasonable restraint on alienation, regardless of the duration of the contract or the amount of the consideration set forth in the agreement. (b) A recorded service agreement is void and unenforceable under this chapter if the agreement: (1) Purports to run with the land or to be binding on future owners of interests in the real property; (2) Allows for assignment of the right to provide services without notice to and the consent of the owner of residential real estate; or (3) Purports to create a lien, encumbrance, or other real property security interest. (c) This chapter does not impair: (1) The rights granted or applied involving a mechanic's or materialmen's lien under title 66, chapter 11; (2) The furnishing of a loan or other thing of value to be secured by real property as otherwise provided by law; (3) An agreement entered into by a nonprofit, mandatory membership organization comprised of owners of homes, condominiums, cooperatives, or manufactured homes; or (4) Any interest in real property created pursuant to a declaration, covenant, or other applicable law, pertaining to the oversight or management of real property. Added by 2023 Tenn. Acts, ch. 160, s 1, eff. 4/17/2023. (a) The general assembly finds and declares that: (1) The public policy of this state favors the transferability of interests in real property free from unreasonable restraints on alienation and covenants or servitudes that do not touch and concern the property; and (2) A recorded service agreement violates this public policy by impairing the marketability of title to the affected real property and constitutes an unreasonable restraint on alienation, regardless of the duration of the contract or the amount of the consideration set forth in the agreement. (1) The public policy of this state favors the transferability of interests in real property free from unreasonable restraints on alienation and covenants or servitudes that do not touch and concern the property; and (2) A recorded service agreement violates this public policy by impairing the marketability of title to the affected real property and constitutes an unreasonable restraint on alienation, regardless of the duration of the contract or the amount of the consideration set forth in the agreement. (b) A recorded service agreement is void and unenforceable under this chapter if the agreement: (1) Purports to run with the land or to be binding on future owners of interests in the real property; (2) Allows for assignment of the right to provide services without notice to and the consent of the owner of residential real estate; or (3) Purports to create a lien, encumbrance, or other real property security interest. (1) Purports to run with the land or to be binding on future owners of interests in the real property; (2) Allows for assignment of the right to provide services without notice to and the consent of the owner of residential real estate; or (3) Purports to create a lien, encumbrance, or other real property security interest. (c) This chapter does not impair: (1) The rights granted or applied involving a mechanic's or materialmen's lien under title 66, chapter 11; (2) The furnishing of a loan or other thing of value to be secured by real property as otherwise provided by law; (3) An agreement entered into by a nonprofit, mandatory membership organization comprised of owners of homes, condominiums, cooperatives, or manufactured homes; or (4) Any interest in real property created pursuant to a declaration, covenant, or other applicable law, pertaining to the oversight or management of real property. (1) The rights granted or applied involving a mechanic's or materialmen's lien under title 66, chapter 11; (2) The furnishing of a loan or other thing of value to be secured by real property as otherwise provided by law; (3) An agreement entered into by a nonprofit, mandatory membership organization comprised of owners of homes, condominiums, cooperatives, or manufactured homes; or (4) Any interest in real property created pursuant to a declaration, covenant, or other applicable law, pertaining to the oversight or management of real property.
‹ Prev All Tennessee sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.