If you own a house in Memphis and you’ve gotten a postcard, a cold call, or a text offering “fast cash, any condition,” there’s a new Tennessee law you should understand before you sign anything. Tennessee SB909 home sellers protections took effect in 2025, and they change what a wholesaler is legally required to tell you. This guide breaks down SB909 in plain English, what it means for Shelby County homeowners, and how to use the law as a free checklist to tell a genuine cash buyer from someone who just wants to flip your contract.
We’re Fair Cash Deal — a local end-buyer in Memphis, not a wholesaler assigning your contract. That distinction is the whole point of SB909, so we have a direct stake in helping you understand it.
What Is Tennessee SB909?
Tennessee Senate Bill 909 (paired with House Bill 781) is a real-property law that took effect March 25, 2025. It amends Tennessee Code Title 47 and Title 66 to require that anyone “engaged in wholesaling real property” disclose key facts to the seller and to any subsequent buyer. You can read the enacted bill text on the Tennessee General Assembly’s official bill page.
In short: the state decided that home sellers deserve to know when the “buyer” sitting across the table doesn’t actually intend to buy the house — they intend to lock it under contract and sell that contract to someone else for more money.
First, What Is Wholesaling?
Wholesaling is a common strategy behind a lot of “we buy houses” marketing. Here’s how it works. A wholesaler signs a contract to buy your house at one price — say $150,000 — but never plans to close on it themselves. Instead, they “assign” that contract to a third party (an actual investor) for a higher price — say $165,000 — and pocket the $15,000 spread. You still sell for $150,000; a middleman just made $15,000 off your house without ever owning it.
Wholesaling is legal in Tennessee. There is nothing wrong with it on its own. The problem SB909 targets is the secrecy — sellers historically had no idea the person they trusted was a pass-through, not the buyer.
What SB909 Requires Wholesalers to Disclose
This is the part that matters most for Tennessee SB909 home sellers. The law forces specific, written disclosures.
Before you sign
Before the purchase contract is signed, a wholesaler must disclose in writing that they are acquiring only an equitable interest and intend to market or assign that interest rather than personally close on your home. In plain terms: they have to tell you up front that they plan to sell your contract.
Three business days before assignment
If the wholesaler does assign your contract, they must notify you of the assignment’s effective date at least three business days in advance. You’re entitled to know who the deal is actually moving to and when.
It must be bold and obvious
SB909 doesn’t let a buyer bury this in fine print. The disclosures must appear in writing, in bold, large-font print within the agreement or an addendum. That formatting requirement is written into the statute itself, per the LegiScan summary of SB0909.
There is also a two-year statute of limitations for claims under the law, so keep every document you sign.
Why SB909 Matters for the Memphis Market Right Now
Memphis is one of the most heavily “wholesaled” markets in the country, and 2026 conditions are keeping investor interest high. According to Redfin’s Memphis housing market data, the median sale price over the three months ending May 2026 was about $210,000 — up 8.7% year over year — while homes took roughly 46 days to sell, up from 35 days a year earlier. That combination of affordable price points and slower retail sales is exactly what draws out-of-state wholesalers blanketing Shelby County with cash-offer postcards.
In a market like that, the difference between a real buyer and a contract-flipper directly affects how much you walk away with — and how reliably your sale actually closes.
How to Use SB909 as a Seller’s Screening Checklist
Here’s the angle most “is this a scam?” articles miss: you can turn SB909 into a free, five-question screening tool. Before you sign with any cash buyer in Memphis, ask:
1. “Are you the end buyer, or do you plan to assign this contract?”
A local end-buyer (like Fair Cash Deal) closes on the house themselves. A wholesaler is now legally required to tell you if they intend to assign. If they dodge this question, that’s your first red flag.
2. “Show me the SB909 disclosure language in the contract.”
If they’re wholesaling, the bold, large-font disclosure has to be there. If they claim to be a direct buyer, there’s no contract-flip to disclose — but the absence should match their answer to question one.
3. “Whose name closes on the deed, and where do the funds come from?”
An end-buyer closes in their own name with their own funds. A wholesaler needs a third party’s money to ever close.
4. “Will you put the closing date and price in writing today?”
Reputable buyers commit in writing. Per the Better Business Bureau, high-pressure “sign right now” tactics are a classic warning sign — a real buyer wants you comfortable with the decision.
5. “Are you local to Memphis?”
Out-of-state contract-flippers rarely know the difference between Cordova, Germantown, Bartlett, and Collierville. A local end-buyer prices each neighborhood on its own merits.
Wholesaler vs. Local End-Buyer: Why It Changes Your Outcome
When you sell to a wholesaler, your deal depends on them finding a third party before your contract’s deadline. If they can’t, the deal can fall apart — sometimes days before closing — leaving you back at square one. That uncertainty is the hidden cost of an undisclosed wholesale.
A local end-buyer carries the risk themselves. At Fair Cash Deal, we buy with our own funds and close on the property in our own name. There’s no contract to assign, no third party to find, and no spread skimmed off the top. That’s what “local end-buyer, not a wholesaler assigning your contract” actually means for your bottom line — and it’s the trust standard SB909 is nudging the whole industry toward.
Watch how a straightforward, local cash sale is supposed to work:
SB909 Doesn’t Replace Your Own Due Diligence
The law adds transparency, but it doesn’t vet anyone for you. Smart Memphis and Shelby County sellers still:
- Verify the buyer’s local track record and reviews.
- Read every line of the purchase agreement (especially any addendum).
- Refuse to be rushed into signing.
- Get the price and closing date in writing.
- Ask plainly whether the contract will be assigned.
If you’d like more answers about how a no-obligation cash sale works, our frequently asked questions page covers timelines, fees, and condition requirements in detail.
Selling As-Is in Memphis Under the New Rules
None of this changes the upside of a legitimate cash sale. You can still sell a Memphis house in any condition — fire damage, foundation issues, tenant-occupied, full of belongings — with no repairs, no agent commissions, and no closing costs on your end. SB909 simply makes sure you know exactly who you’re dealing with while you do it.
Whether your property is in Whitehaven, Frayser, Cordova, or out in Arlington and Lakeland, the right buyer should be transparent, local, and willing to commit in writing. If you want a fast, fee-free path, you can get a cash offer today or learn more about our Memphis cash-offer process.
Frequently Asked Questions: Tennessee SB909 for Home Sellers
Q: When did Tennessee SB909 take effect? A: SB909 was enacted and took effect March 25, 2025. It amends Tennessee Code Title 47 and Title 66 and applies to wholesaling transactions in Memphis and across the state.
Q: Does SB909 make wholesaling illegal in Tennessee? A: No. Wholesaling remains legal. SB909 only requires wholesalers to disclose, in writing and in bold print, that they intend to assign their contract — and to give the seller at least three business days’ notice before an assignment takes effect.
Q: How do I know if a Memphis “we buy houses” company is a wholesaler? A: Ask directly whether they are the end buyer or plan to assign the contract, and ask to see the SB909 disclosure language. A local end-buyer, like Fair Cash Deal, closes in its own name with its own funds and has no contract to assign.
Q: What happens if a wholesaler doesn’t follow SB909? A: The law creates disclosure obligations with a two-year statute of limitations for claims. Keep every signed document so you have a record if a dispute arises. Consult a Tennessee real estate attorney for advice on your specific situation.
Q: Is selling to a cash buyer still a good idea under SB909? A: Yes — for many Memphis sellers it’s the fastest, lowest-hassle option. SB909 simply gives you more transparency about who you’re working with so you can choose a legitimate, local end-buyer with confidence.
Q: Do I have to make repairs before selling to a cash buyer? A: No. A genuine cash buyer purchases as-is — no repairs, no cleaning out the house, no agent commissions, and no closing costs on your end.
Get Your 9-Minute Cash Offer
You shouldn’t need a law degree to sell your house with confidence. The simplest protection is to work with a transparent, local end-buyer from the start.
Fair Cash Deal buys houses throughout Memphis and Shelby County — Cordova, Germantown, Bartlett, Collierville, Whitehaven, Frayser, and beyond — as-is, with no fees and no commissions. We close on our own contracts; we don’t assign them.
Call or text (901) 531-9917, or get your 9-minute cash offer today. No obligation, no pressure, and a price and closing date in writing.