Selling a house in Tennessee: foreclosure, probate and closing rules
Most Tennessee foreclosures happen out of court: the trustee must advertise the sale at least twice, the first time at least 20 days before the sale. An inherited house passes to the heirs or the people named in the will at death, so they can usually sell it themselves. Sellers of most homes must give the buyer a disclosure statement, and the 37 cents per $100 transfer tax is paid by the buyer by law.
Key facts
- Foreclosure notice: two newspaper ads, the first at least 20 days before the sale, plus 20 days online (Tenn. Code Ann. 35-5-101).
- Redemption: two years after a foreclosure sale unless the deed of trust waives it, and most do (66-8-101).
- Small estates up to $50,000 cover personal property only, never a house (30-4-102).
- Transfer tax: 37 cents per $100 of price, paid by the buyer (67-4-409).
- No Tennessee inheritance tax for deaths in 2016 or later (TN Department of Revenue).
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Get my cash offerHow foreclosure works in Tennessee
Tennessee lenders usually foreclose through a trustee under the power of sale in the deed of trust, without filing a lawsuit. Before the sale, the trustee must publish the notice at least two times in a newspaper in the county, with the first ad at least 20 days before the sale. The notice must also stay posted online by an internet posting company for at least 20 continuous days, and the borrower must be mailed a copy by registered or certified mail on or before the first ad (Tenn. Code Ann. 35-5-101).
That 20-day window is not how long the whole process takes. Federal servicing rules generally stop a servicer from making the first foreclosure notice until the loan is more than 120 days behind, and a complete loss mitigation application sent more than 37 days before a scheduled sale generally stops the sale until it is decided (12 CFR 1024.41). Nolo, a legal publisher, puts a typical Tennessee foreclosure at around five or six months after a payment default (AllLaw).
Tennessee once required a separate 60-day notice for owner-occupied homes. That requirement was repealed effective January 1, 2013, so a missing 60-day letter is not a defense today.
Redemption and deficiency after a sale
Tennessee law gives a two-year right to redeem the property after a deed of trust sale unless the deed of trust expressly waives it (66-8-101). Most deeds of trust include that waiver, so in practice most borrowers cannot buy the home back after the sale. Read your own deed of trust before assuming either way.
If the sale brings less than the loan balance, the lender can sue for the difference. The sale price is presumed to be fair market value, but you can rebut that by showing the home sold for materially less, and the lender must sue within two years of the sale (35-5-117). Selling before the sale date, for enough to pay off the loan, avoids both problems.
Selling an inherited house in Tennessee
In Tennessee, real estate passes to the heirs (when there is no will) or to the people named in the will at the moment of death, unless the will directs that the real estate be handled by the estate (31-2-103). In most cases the heirs or beneficiaries hold title together and can sell by signing a deed together, though the estate can still use the house to pay debts if the other property is not enough.
When the will gives the personal representative power to sell, directly or by referring to the statutory fiduciary powers, the personal representative can sell without asking the court (35-50-110). A court-ordered sale is used when there is no such power and the estate needs the house to pay debts (30-2-418).
Creditors have four months from the first published notice to creditors to file claims, and every claim is barred 12 months after the date of death (30-2-307). Title companies often want that period handled before they insure a sale. No official source publishes a typical length for Tennessee probate, so be wary of anyone who promises one.
Tennessee's small estate process is for estates of $50,000 or less, but it covers personal property only. It cannot transfer a house (30-4-102). Tennessee has also not adopted transfer-on-death deeds for real estate.
What a Tennessee seller must disclose
Sellers of homes with one to four units must give the buyer either the state Residential Property Disclosure Statement or, if the buyer waives it, a disclaimer statement saying the house is sold as-is (66-5-202). Several transfers are exempt, including sales by a personal representative or trustee administering an estate, foreclosure sales, transfers between co-owners and sales of a home the owner has not lived in for the three years before the sale (66-5-209).
Even exempt sellers must disclose some things before a contract is signed: any known sinkhole, any known exterior injection well, known percolation test results and whether a house was moved from another foundation (66-5-212).
Closing costs and property taxes
| Item | Tennessee rule |
|---|---|
| Realty transfer tax | 37 cents per $100 of the price or value, whichever is greater, paid by the buyer (67-4-409) |
| Mortgage tax | 11.5 cents per $100 on the buyer's new loan, first $2,000 exempt (same section) |
| Property tax due date | Due the first Monday in October, payable without interest through February 28, delinquent March 1 (Comptroller) |
| After a tax sale | Usually one year to redeem from the order confirming the sale, shorter for long-delinquent or vacant property, plus 12% interest (67-5-2701) |
Frequently asked questions
How long does foreclosure take in Tennessee?
The legal notice period is short: the first sale ad must run at least 20 days before the sale. But federal rules generally bar the first notice until the loan is more than 120 days late, and Nolo estimates about five to six months from the first missed payment.
Can I sell my house in Tennessee after the foreclosure notice is published?
Yes. You can sell at any time before the trustee sale, as long as the sale pays off the loan or the lender agrees to a short sale. A cash buyer can often close inside the 20-day notice window.
Do I need probate to sell an inherited house in Tennessee?
Not always. Real estate passes to the heirs or will beneficiaries at death, so they can often sell together by deed. A title company may still want the estate opened so the creditor period runs, and a court order is needed only in limited cases.
Who pays the transfer tax in Tennessee?
By statute the buyer pays the 37 cents per $100 realty transfer tax. On a $300,000 sale that is $1,110.
Does Tennessee have an inheritance tax?
No. The Tennessee inheritance tax does not apply to anyone who died in 2016 or later, and Tennessee has no separate estate tax.
Sources
Checked against each source on November 2, 2026. This page is general information, not legal or tax advice.
- Tenn. Code Ann. 35-5-101 (notice of foreclosure sale) (Tennessee Code, via FindLaw)
- 12 CFR 1024.41 (Regulation X loss mitigation rules) (Consumer Financial Protection Bureau)
- Foreclosure Process and Laws in Tennessee (updated May 2025) (AllLaw, Nolo network)
- Tenn. Code Ann. 66-8-101 (right of redemption) (Tennessee Code, via FindLaw)
- Tenn. Code Ann. 35-5-117 (deficiency judgments) (Tennessee Code, via FindLaw)
- Tenn. Code Ann. 31-2-103 (real estate passes at death) (Tennessee Code, via FindLaw)
- Tenn. Code Ann. 35-50-110 (fiduciary powers by reference) (Tennessee Code, via FindLaw)
- Tenn. Code Ann. 30-2-418 (court-ordered sale of real estate) (Tennessee Code, via FindLaw)
- Tenn. Code Ann. 30-2-307 (time to file creditor claims) (Tennessee Code, via FindLaw)
- Tenn. Code Ann. 30-4-102 and 30-4-103 (small estates) (Tennessee Code, via FindLaw)
- Tenn. Code Ann. 66-5-202 (disclosure or disclaimer statement) (Tennessee Code, via FindLaw)
- Tenn. Code Ann. 66-5-209 (transfers exempt from disclosure) (Tennessee Code, via FindLaw)
- Tenn. Code Ann. 66-5-212 (sinkholes and other required disclosures) (Tennessee Code, via FindLaw)
- Tenn. Code Ann. 67-4-409 (realty transfer and mortgage tax) (Tennessee Code, via FindLaw)
- Property tax assessment schedule (Tennessee Comptroller of the Treasury)
- Tenn. Code Ann. 67-5-2701 (redemption after a tax sale) (Tennessee Code, via FindLaw)
- Inheritance Tax (Tennessee Department of Revenue)
- Avoiding Foreclosure (U.S. Department of Housing and Urban Development)