Closing on a home in Tennessee
The taxes, the fees, the programs, and the rights Tennessee gives you — whether the industry mentions them or not.
Six things every Tennessee buyer and seller should know
Tennessee charges a realty transfer tax of $0.37 per $100 of the sale price, collected when the deed is recorded. On a $400,000 home that is $1,480 — and WHO pays it (buyer or seller) is negotiable in the contract, not fixed by law. Most Middle Tennessee contracts put it on the buyer by default. You can negotiate it.
Recording a mortgage costs an additional indebtedness tax of $0.115 per $100 borrowed above the first $2,000, plus per-page recording fees that vary by county.
Tennessee does NOT require an attorney to close a real estate transaction. Title companies, escrow companies, and attorneys all close here. Whoever closes yours, you have the right to receive and review your Closing Disclosure at least 3 business days before closing — use them.
Title insurance rates are NOT set by the state in Tennessee. Different companies charge different premiums for the same coverage — you are allowed to shop your title and closing provider, and the loan estimate that says otherwise is wrong.
Property taxes are paid in arrears and prorated at closing. The seller credits you for their share of the year; make sure the proration on your settlement statement uses the right tax amount, not last year's.
The Tennessee Housing Development Agency (THDA) Great Choice Plus program offers down payment assistance to eligible buyers statewide as a second loan — many Middle Tennessee buyers who qualify never hear about it because nobody at the table is paid to mention it.
Middle Tennessee guides
Latest Tennessee reporting
- Chattanooga's New $21,000 Down Payment Help: Do You Qualify, and What's the Catch?
The city just launched its biggest first-time buyer program yet. Here's the math, the fine print, and the three steps to take before your next closing.
Worth reading before any closing
- The American Home at 250 Years: A Fourth of July for Buyers and Sellers Alike
Two and a half centuries in, owning a home is the closest thing the Republic has to a birthright. The history is worth celebrating. So is understanding a transaction most Americans go through only a handful of times, inside an industry that has quietly changed the rules between visits.
- Wire Fraud Stole $275 Million From Home Buyers Last Year. Here's the Step-by-Step That Could Save Yours.
The FBI's recovery team can freeze stolen funds, but only if you act within hours. Here's what to do before, during, and after your closing.
- The $275 Million Warning: AI Scams Targeting Home Buyers and Sellers Right Now
Five specific fraud patterns are draining closing accounts across the country, here is what each one looks like and exactly how to stop it before you lose a dollar
- The Mortgage Points Trap: Why Paying Thousands Upfront to Lower Your Rate Often Backfires
Before you hand your lender $9,000 to buy down your rate, do this one calculation or you could lose thousands
- Why Builder 'Preferred' Lenders and Title Companies Often Cost You More Than They Save
That 3% rate buydown or $15,000 closing credit looks like a bonus. Here's what's actually inside it, and what the builder doesn't want you to compare.
- Wire Fraud Is Stealing Six Figures From Home Buyers. Here's Your Defense.
In 2023, criminals stole more than $145 million from real estate transactions. The FTC and FBI can help, but only if you act within hours of discovering the theft. Here's exactly what to do.