In Tennessee, many homeowners are feeling overwhelmed by frequent, unsolicited offers from real estate developers eager to purchase their properties.

These persistent contacts often come through phone calls, text messages, emails, and even direct mail, causing significant distress among residents. To address this growing concern, State Senator Charlane Oliver has introduced the “Tennessee Homebuyer Harassment Prevention Act” (Senate Bill 204) in the 114th General Assembly.

Understanding the Proposed Legislation

The primary goal of this bill is to limit how often real estate developers and their representatives can reach out to property owners with unsolicited purchase offers. Specifically, it seeks to restrict such contacts to no more than once per calendar year. This limitation applies to various communication methods, including phone calls, text messages, emails, mail, and faxes.

Moreover, the bill mandates that before making any unsolicited offer, developers or their agents must provide property owners with:

The legal name of the developer or business entity.

The operational address of the developer or entity.

A contact telephone number.

A contact email address.

These requirements aim to promote transparency and ensure that homeowners have clear information about who is contacting them.

Enforcement and Penalties

If a property owner believes that a developer has violated these proposed regulations, they can file a complaint with the Consumer Affairs Division of the Tennessee Attorney General’s Office. Upon receiving a complaint, the division is obligated to initiate a review within 20 business days. After completing the review, the division must inform the property owner of its findings, including whether the individual who made the unsolicited contact is a licensed real estate agent, and detail any actions taken as a result.

The Attorney General holds the authority to investigate and enforce actions against violators, leveraging the powers granted under the Tennessee Consumer Protection Act of 1977. If a court determines that a developer or business entity has breached the proposed law, it can impose fines of up to $1,500 per violation. Additionally, the court may order the offending party to reimburse the state for the costs associated with the investigation and legal proceedings, including attorney fees. Notably, each unauthorized contact beyond the permitted annual solicitation is considered a separate violation, potentially leading to multiple fines for persistent offenders.

Exemptions and Clarifications

An important aspect of the bill is its exemption for licensed real estate agents. The proposed restrictions do not apply to individuals who are licensed real estate agents in the state where the property in question is located. This distinction acknowledges the role of licensed professionals in the real estate market and aims to balance consumer protection with legitimate business practices.

Community Impact and Reactions

The introduction of this bill has sparked discussions among Tennessee residents. Many homeowners, especially those in rapidly developing areas like Nashville, have expressed relief at the prospect of reduced unsolicited communications. Kim Tucker, a longtime East Nashville resident, shared her experience, stating, “I’ve lived here for over 16 years, and the constant calls and messages from developers have been overwhelming. It’s about time something is done to address this.”

On the other hand, some developers argue that the bill could hinder their ability to engage with potential sellers, especially in a booming real estate market. They emphasize the importance of open communication channels to identify willing sellers and facilitate property transactions.

Next Steps

As of January 16, 2025, Senate Bill 204 has been filed for introduction. The legislative process will involve committee reviews, potential amendments, and votes in both the Senate and the House. If passed, the bill will represent a significant step toward protecting Tennessee homeowners from unsolicited and often intrusive purchase offers, ensuring that residents can enjoy their homes without undue external pressures.