Section 56-35-133 - Notification to buyers of the availability of title insurance(a) In connection with any transaction involving the purchase or sale of a fee simple possessory interest (title evidencing beneficial ownership) in real property in this state, the person conducting or handling the settlement, at or before the closing of settlement and disbursement of any funds, shall obtain from the purchaser a statement in writing that the purchaser has received a notice that owner's title insurance may be available to the purchaser and that the purchaser does or does not desire to purchase the insurance coverage. The notice shall not be required of a trustee under a deed of trust or in transactions that are to convey only a security interest in the property of an existing owner. In addition, notice under this section is not intended to duplicate and shall not be required where, in connection with the issuance of a mortgagee's title policy, notice with respect to owner's title insurance is given pursuant to rules of the department under this chapter. The notice may be combined with or attached to any other notices required of the purchaser; provided, that the notice required by this section is separately signed.(b) The following or any other substantially similar form shall be sufficient for the purposes of this section: Notice and Acknowledgment With Respect to Owner's Title Insurance
RE: ____________________ (address or brief property description)
Pursuant to § 56-35-133, the undersigned purchaser or purchasers, hereby acknowledge(s) that they have received a notice that owner's title insurance may be available to them at their expense.
____________________ I(we) hereby desire to obtain owner's title insurance.
____________________ I(we) hereby decline to obtain owner's title insurance.
Tennessee law requires that you sign this acknowledgment. I (we) further acknowledge that the settlement agent in this transaction [or insert name of settlement agent here] shall have no responsibility to the undersigned for the status of the title to the real estate we are purchasing.
____________________
Signature of Purchaser or
Purchasers
Date: ____________________
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(c) In the event that the person conducting or handling the settlement shall fail to obtain from the purchaser the statement required by this section, the closing or settlement agent may cure the omission at any time subsequent to the closing of settlement but prior to actual or constructive notice of a claim or possible claim against the title of the real estate that was the subject of the settlement by sending a certified letter, return receipt requested, to the last known address of the purchaser, which includes the notification provided in this section.(d) The notification provided by this section shall not be required in any of the following transactions: (1) A judicial or nonjudicial foreclosure;(2) A sale pursuant to a court decree;(4) A transfer evidenced by a deed upon which recording tax is not payable pursuant to § 67-4-409; or(5) Any transaction wherein the purchaser has elected to obtain owner's title insurance or wherein the seller has elected to provide owner's title insurance to the purchaser.Acts 1996, ch. 719, § 1; 1997 , ch. 273, § 1.