If you’re selling a house in Memphis and a cash buyer has made you an offer, there’s a 2025 law you should know about. Tennessee SB909 changed the rules for real estate wholesalers, and it directly affects how Memphis home sellers should evaluate a cash offer in 2026. This guide breaks down what SB909 actually says, why it matters for your sale, and how to tell whether the company at your kitchen table is a real buyer or a middleman planning to flip your contract.
Most “we buy houses” pages won’t explain this to you — because for some of them, the law is talking about them. We think you deserve the full picture before you sign anything.
What Is Tennessee SB909?
Tennessee Senate Bill 909 was signed into law on March 25, 2025, and took effect on April 8, 2025. It amends Tennessee Code Annotated Titles 47 and 66 to regulate real estate wholesaling — and it’s one of the most seller-friendly transparency laws the state has passed in years.
In plain terms, the law defines wholesaling as a deal where a buyer signs a contract to purchase your property and then assigns that contract — sells their position — to a different end buyer for a higher price, often without ever intending to buy the house themselves. The wholesaler pockets the spread between what you agreed to and what the real buyer pays.
That’s legal. SB909 doesn’t ban it. What it does is force the wholesaler to tell you the truth about what they’re doing before they do it.
What SB909 Requires Wholesalers to Disclose
Under SB909, a buyer engaged in wholesaling must make specific disclosures — and they have to be in bold, large font, not buried in fine print. The two that protect you most as a Shelby County seller are:
- Their intent to assign. The wholesaler must tell you, the original seller, that they intend to market their equitable interest in your property to someone else.
- At least three business days’ notice before assignment. You’re entitled to know the assignment date in advance, giving you a window to understand who is actually buying your home.
The law also requires disclosure to any subsequent purchaser about the nature of the wholesaler’s equitable interest. Tennessee built in a two-year statute of limitations for violations, and penalties can include action by the Tennessee Real Estate Commission — in severe deceptive-practice cases, even criminal exposure.
Why the legislature did this
The point of SB909 is transparency. Before the law, a Memphis homeowner could sign with a “cash buyer,” assume the deal was done, and only later discover the contract had been flipped to a stranger — sometimes at a price that revealed how much margin the middleman had taken. SB909 makes that hidden step visible.
Why SB909 Matters When You Sell Your Memphis House
Here’s the practical takeaway for Memphis and Shelby County sellers: SB909 gives you a built-in test for who you’re really dealing with.
When a company makes you a cash offer, the law now effectively forces a clear answer to one question — are you the buyer, or are you assigning my contract to someone else? A genuine end buyer purchases the house with their own funds and closes in their own name. A wholesaler signs your contract and then shops it.
Neither is illegal. But they are not the same thing, and the difference can affect your price, your closing certainty, and how much control you keep over your own sale.
If a buyer is required to give you three business days’ notice before assigning your contract, that notice is a signal. A buyer who never sends one — because they’re the actual end buyer — is a different kind of partner than one who does.
Local End Buyer vs. Wholesaler: What’s the Real Difference?
This is the heart of it. At Fair Cash Deal, we are a local end buyer, not a wholesaler assigning your contract. When we make an offer on your Memphis house, we’re buying it — with our own capital, closing in our name, on the date you choose.
A wholesaler’s business model depends on the spread. They need to lock your house under contract at the lowest number you’ll accept, then find someone willing to pay more. That introduces two risks for you:
- Price erosion. The margin a wholesaler needs comes out of your proceeds.
- Closing uncertainty. If the wholesaler can’t find an end buyer in time, the deal can fall apart — after you’ve already made plans around it.
An end buyer removes both. There’s no one else to find. The offer is the deal.
A quick reality check on Memphis prices
Knowing the market helps you judge any offer. As of early 2026, Redfin pegged the Memphis median sale price around $210,000, and local inventory sat near 1.9 months of supply — still a seller’s market, where well-priced homes move quickly. That context matters: a fair cash offer should make sense against real Shelby County numbers, not a figure pulled from thin air. (Sources: Redfin Memphis Housing Market and the Memphis Area Association of REALTORS market stats.)
How to Vet a Memphis Cash Buyer Under the New Law
Use SB909 to your advantage. Before you sign with any “we buy houses Memphis” company, ask these questions:
1. “Are you buying the house yourself, or assigning the contract?”
A straightforward end buyer will say yes, they’re buying it. If the answer is vague, that’s your cue to dig deeper.
2. “Whose name is on the closing documents?”
The buyer of record should be the company that made the offer — not a name you’ve never heard.
3. “Where do the funds come from?”
End buyers close with their own funds or proof of funds. Wholesalers often close only once they’ve lined up someone else’s money.
4. “Will you give me the SB909 assignment disclosure in writing?”
If they’re a wholesaler, the law requires it. If they’re an end buyer, they’ll tell you plainly that no assignment is happening.
You can read more common questions on our FAQ page, and you’re always welcome to call us and ask these exact questions about how we work.
Watch: How a Local Cash Sale Actually Works in Memphis
Selling your house is a big decision, and a 60-second explainer is sometimes clearer than a page of text. Here’s a quick look at how we help Memphis homeowners through it:
We Buy Houses Across Memphis and Shelby County — As-Is, No Fees
Wherever your property sits, we buy directly and close on your timeline. We purchase homes throughout the Greater Memphis area, including Cordova, Germantown, Bartlett, Collierville, Arlington, Millington, Lakeland, Whitehaven, and Frayser — plus Southaven, Olive Branch, and Horn Lake across the line in Mississippi.
You don’t fix anything. You don’t pay agent commissions. You don’t cover closing costs on your end. And because we’re the end buyer, the number we give you is the number you build your plans around. Call or text us at (901) 531-9917 with any address and we’ll walk you through what a real, no-obligation offer looks like.
What SB909 Does NOT Do
To keep this honest: SB909 doesn’t make wholesaling illegal, and it doesn’t mean every wholesaler is acting in bad faith. Plenty of wholesalers operate ethically and now disclose properly. The law simply gives Memphis sellers information and time — the two things that protect you most. Knowing the difference between an end buyer and an assignor lets you choose with your eyes open, whichever path you pick.
Get Your 9-Minute Cash Offer
If you’d rather skip the middleman entirely, talk to a local buyer who’s purchasing your house outright. At Fair Cash Deal, we’re a Memphis-based end buyer — no contract assignment, no hidden spread, no surprises three business days before closing.
Get your 9-minute cash offer today, or call and text (901) 531-9917. We’ll give you a fair, no-obligation number on your Shelby County home — as-is, on the closing date you choose.
Frequently Asked Questions
Q: What is Tennessee SB909? A: SB909 is a Tennessee law effective April 8, 2025, that requires real estate wholesalers to disclose their intent to assign a purchase contract and to give the seller at least three business days’ notice before assigning it. It’s designed to protect home sellers with transparency.
Q: Does SB909 make wholesaling illegal in Memphis? A: No. SB909 does not ban wholesaling. It requires wholesalers to disclose, in bold large font, that they intend to assign your contract and when. The goal is transparency, not prohibition.
Q: How do I know if a Memphis cash buyer is a wholesaler or a real buyer? A: Ask directly whether they’re buying the house themselves or assigning the contract, whose name appears on closing documents, and whether they’ll provide the SB909 assignment disclosure in writing. A local end buyer like Fair Cash Deal purchases in its own name with its own funds.
Q: Is Fair Cash Deal a wholesaler? A: No. Fair Cash Deal is a local end buyer, not a wholesaler assigning your contract. When we make an offer on your Memphis or Shelby County home, we buy it directly and close in our own name on your timeline.
Q: What happens if a wholesaler violates SB909? A: Tennessee provides a two-year statute of limitations for violations, and penalties can include action by the Tennessee Real Estate Commission, with criminal exposure in severe deceptive-practice cases.
Q: How fast can Fair Cash Deal close on my Memphis house? A: We can close in as little as 7 days, or later if you need more time. You choose the closing date. Call or text (901) 531-9917 for a no-obligation cash offer.
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