(a) The general assembly finds and declares that:

contract signature

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Terms Used In Tennessee Code 66-33-103

  • Contract: A legal written agreement that becomes binding when signed.
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Oversight: Committee review of the activities of a Federal agency or program.
  • Property: includes both personal and real property. See Tennessee Code 1-3-105
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • real property: include lands, tenements and hereditaments, and all rights thereto and interests therein, equitable as well as legal. See Tennessee Code 1-3-105
  • Residential real estate: means real property located in this state that is used primarily for personal, family, or household purposes and is improved by one (1) to four (4) dwelling units. See Tennessee Code 66-33-102
  • Service agreement: means a contract pursuant to which a person agrees to provide services in connection with the sale of residential real estate or the sale of any product or the performance of any personal service on or for the maintenance of residential real estate. See Tennessee Code 66-33-102
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
(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.
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