Wholesaling Code Violation Properties in Tennessee

The short answer

Can you wholesale a code violation property in Tennessee?

Yes. You can contract to buy a cited property and assign that contract, with the written disclosures Tennessee requires. Always confirm what fines or liens are recorded against the property.

Tennessee’s 2025 law treats an assignment for a higher price as wholesaling. You generally disclose in writing, before the contract is executed, that you plan to market your equitable interest. You also give the seller notice of the effective date at least three business days before the assignment, and your disclosures belong in the agreement in bold, large print. Our legal overview and memorandum guide add detail.

Code problems are a local matter. Each city and county sets its own standards, fines and procedures, and they change. Start with the permits and enforcement records for the property and the certificate of occupancy status. Run a title search to see whether any fines became liens, and ask your title company what must be paid at closing.

The opportunity

Why wholesaling code violation properties in Tennessee works

Fines and repair orders pile up fast for an owner on a fixed income, an absentee landlord or an estate. In Davidson County, as in other fast-growing areas, enforcement can mean repeat citations, deadlines and stress. A buyer who can fix the issues quickly gives the owner a way out. The opportunity is the gap between the owner’s pressure and the buyer’s resources, as long as you price the violations carefully. Check each city’s current rules, because they differ.

Lead sources

Where to find code violation leads in Tennessee

• Public records. Many local governments publish enforcement or property standards cases. Check what yours posts, and use our leads guide.
• Driving routes. Look for peeling paint, broken porches and notices on doors. See driving for dollars.
• Tax delinquent lists. Owners behind on taxes are often behind on repairs too. See tax delinquent lists.
• Skip tracing. Find out where absentee owners live with skip tracing.
• Neighbors. People next door can tell you who owns the house and how long it has been cited.

Your exit

Who buys code violation properties in Nashville

Rehabbers and small contractors are your core buyers, since they can fix violations and resell or rent. Some will want a defined repair scope and a budget. Share the citation and the deadline up front, so your buyer knows the clock.

Buyers also care about unpaid fines and liens. Show what you found and let the title company confirm. Treat fines and judgment liens or mechanic’s liens as costs in your ARV and repair budget.

Step by step

How to start wholesaling code violation properties in Tennessee

1. Pull the record. Get the citations, dates and open cases from the local government.
2. Check title. Look for recorded liens or fines before you price.
3. Estimate repairs. Use the repair cost guide and a contractor walk.
4. Run the numbers. Use the ARV calculator and the MAO calculator.
5. Disclose and sign. Write your intent to market the contract in bold, large print before signing.
6. Find the buyer. Send the citation list and repair scope to rehabbers. See writing an offer.
7. Notify and close. Give the seller notice of the assignment date three business days ahead, then close at a title company that knows investors.

An out-of-state owner held a duplex in East Nashville that had been cited for a failing porch and a rotted fascia. The tenants had left, and the owner was tired of calls. Fines were building.

You pulled the records, ran a title search that showed no recorded lien and estimated $78,000 for the full repair. Comps pointed to about $410,000 after repairs. You contracted at $232,000 with the unpaid fines of $3,200 to be paid from the seller’s proceeds, and your intent to assign printed in bold.

A local rehabber paid a $14,000 assignment fee. You sent the owner the effective date in writing three business days before it took effect. The buyer paid the $0.37 per $100 recordation tax on the deed, about $860.

Tennessee rules to know

Local codes, liens and disclosure rules

Tennessee’s 2025 statute asks for written disclosure to the seller and the assignee, with notice of the assignment date. As read, it states no cancellation right and no penalty, and a two-year window applies to actions. Skipping steps can still create other problems under general law. Also keep your role as a buyer clear, because Tennessee bars brokerage without a license. We have not confirmed how the real estate commission views contract assignments.

Code rules and enforcement vary by city and county, and what is true in Nashville may not be true elsewhere. Ask the local codes office what must be corrected, who can pull permits and whether a sale changes the timeline. Review it with a Tennessee attorney.

Learn it with a mentor

Read the records before you offer

The best code violation deals start with research. Mentorship students bring us their citation records and we help them price the fix.

FAQ

Code Violation Properties in Tennessee: common questions

Keep going

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