Wholesaling Tax Delinquent Properties in Tennessee
Wholesaling tax delinquent properties in Tennessee means contracting with owners who have fallen behind on county and city property taxes, then assigning that contract to a buyer who can close. These owners are often under real pressure, because unpaid taxes can end in a chancery court tax sale. A calm offer that clears the bill can look like relief. Read our tax delinquent list guide before you pull your first list.
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The short answer
Can you wholesale a tax delinquent property in Tennessee?
Yes. You can contract with the owner and assign the deal, if you follow the state wholesaling disclosure rules. Have a Tennessee attorney review the contract before you sign it.
Tennessee added a wholesaling statute in 2025 (Public Chapter 72). Before the contract is signed, you disclose in writing, in bold and large print, that you intend to market your interest. You also give the seller written notice of the assignment date at least three business days before it takes effect. Our assignment guide and legality guide cover the basics.
The owner stays the owner until a court confirms a tax sale, so your contract sits behind the tax debt. Your closing has to pay the back taxes, penalties and interest out of the sale price. Tennessee also requires a license for brokerage, so act as a principal buyer and do not advertise someone else’s house. See our license guide.
Tax Delinquent Properties in Tennessee at a glance
| Process | Delinquent taxes can lead to a tax sale in chancery court |
|---|---|
| Redemption period | Generally 1 year, or 180 days, 90 days or 30 days in some cases |
| Redemption cost | Taxes, penalty, interest and costs, plus 12% a year on the purchase price |
| Buying redemption rights | A court can deny redemption it sees as speculation |
| Transfer tax | $0.37 per $100, paid on deeds by the grantee |
| Wholesaling statute | T.C.A. 66-4-401 to -403, disclosures required |
The opportunity
Why tax delinquent leads work in Tennessee
Back taxes are a quiet problem. Many owners fall behind after a job loss, a death in the family or a repair they could not afford, and then stop opening mail. County trustees publish delinquent lists, so you can find them without guessing. Tennessee tax sales run through chancery court, and the clock after a sale is long enough that a deal can still work, but short enough to create urgency. In Montgomery County, where Fort Campbell brings steady rental and buyer demand, a house with a tax bill still draws investor interest. Start with our pre-foreclosure and tax leads guide.
Real urgency
A looming tax sale gives the owner a reason to act now. Our lien versus deed guide explains the stakes.
Clear numbers
The tax balance is a fixed figure you can verify, which makes the offer easier to explain.
Equity often remains
Many delinquent owners hold real equity. See foreclosure surplus funds for what owners lose by waiting.
Lead sources
Where to find tax delinquent leads in Tennessee
- County trustee lists. Montgomery, Davidson and other county trustees publish or provide delinquent tax data.
- Tax sale notices. Chancery court tax sale advertisements show properties already moving toward sale. See our list guide.
- Absentee owners. Out-of-town owners often miss mailed bills. Try our absentee owner guide.
- Inherited homes. Heirs may not know the taxes are unpaid.
- Direct mail. A plain letter works well. Read about direct mail for wholesalers.
Your exit
Who buys tax delinquent houses in Tennessee
Local landlords and rehabbers are the usual buyers. They like a price that already accounts for the back taxes, and they can close fast through a title company that will pay the taxes at closing.
Choose an investor-friendly title company early. Ask them to confirm the exact payoff before you set your assignment fee, because interest keeps adding up.
Step by step
How to start wholesaling tax delinquent properties in Tennessee
- Pull the list. Get delinquent data from the county trustee and sort by years owed.
- Check status. Find out whether a tax sale petition has been filed in chancery court.
- Contact the owner. Speak plainly and ask about their goals and timeline.
- Run the numbers. Use the ARV calculator and the MAO calculator, then subtract all taxes owed.
- Sign with disclosures. Include the bold, large-print wholesaling disclosures in the written contract.
- Order a title search. Follow our title search guide to find other liens.
- Notice and close. Give the required assignment notice, then close through title.
Your checklist for wholesaling Tax Delinquent Properties in Tennessee
- Confirm the exact tax balance with the county trustee.
- Ask whether a tax sale has been ordered or confirmed.
- Put the required disclosures in bold, large print in the contract.
- Check the title for other liens before you set your price.
- Have a Tennessee attorney review every contract.
A Tennessee example: a Clarksville house with three years of back taxes
| Contract price | $168,000 |
|---|---|
| Back taxes and interest | $6,400 |
| Estimated repairs | $32,000 |
| Estimated ARV | $235,000 |
| Buyer assignment fee | $11,000 |
| Seller proceeds, rough | About $150,000 after taxes and costs |
A Clarksville owner inherited a brick ranch near Fort Campbell and never paid the taxes. Three years of bills had piled up, and the trustee’s office was sending notices.
You offered $168,000 with the taxes paid from the sale price. The contract carried the required disclosures, and you told the seller in writing that you planned to assign it.
Three business days before the assignment took effect, you sent the notice. A landlord paid an $11,000 fee, and title paid the county at closing.
Tennessee rules to know
Redemption, tax sales and wholesaling rules
After a tax sale is confirmed, Tennessee law gives a right to redeem. The period is generally one year, but it can be shorter for older delinquencies or for vacant or abandoned property, as short as 30 days. A redeemer pays the taxes, penalty, interest and costs, plus 12% a year on the purchase price. Check the current text of T.C.A. 67-5-2701 before relying on any date.
Buying a redemption right at a discount is risky, because a court can deny redemption it views as speculation. The wholesaling statute requires written, bold, large-print disclosures, and lawsuits must be filed within two years of the contract. Whether assignments can count as brokerage is unconfirmed, so talk to an attorney.
Learn it with a mentor
Get help with your first tax deal
Tax delinquent deals have deadlines and moving parts. Mentorship students bring us their numbers, and we help them decide what to offer.
FAQ
Tax Delinquent Properties in Tennessee: common questions
Is wholesaling tax delinquent properties in Tennessee legal?
Yes, when you follow the 2025 wholesaling disclosure rules and the brokerage license rules. Check current law. In practice that means telling the seller in writing, in bold large print, that you plan to market your interest, and giving three business days’ notice before an assignment takes effect.
How long is the redemption period after a Tennessee tax sale?
It is generally one year, with shorter periods in some cases. Confirm in T.C.A. 67-5-2701. The period scales with how long taxes went unpaid: 180 days, 90 days, or 30 days where the property shows vacant or abandoned. Check current text before quoting a deadline to a seller.
What interest rate applies to redemption?
The redeemer generally pays 12% a year on the purchase price, plus taxes, penalty, interest and costs. Redemption is requested by motion in the tax-sale case. A court can deny a transferee’s motion where it shows speculation, so ask an attorney before buying redemption rights cheaply.
Who pays the back taxes in your deal?
Usually the sale proceeds, paid by the title company at closing. The title company pulls the exact payoff for taxes, penalties and interest, and that figure keeps growing, so confirm it before you set your assignment fee. Pick an investor-friendly title company early.
Do I need a license?
Tennessee requires a license for brokerage. Act as a principal buyer and ask an attorney about your structure. Avoid advertising someone else’s house as though you were listing it, and make the written wholesaling disclosures before the contract is signed.
Keep going
More Tennessee wholesaling guides
Read the full Tennessee wholesaling guide or pick another situation below.
Guides that go deeper
More Tennessee situation guides
Your next step
Turn back taxes into a deal
Bring us a tax delinquent lead. We will help you work out the numbers and the paperwork.
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