2015 Tennessee Legislature Expands Real Estate Sale Disclosure Requirements to Include Sink Holes

Tennessee has long required certain disclosures when a residential property is sold.  Some of these disclosures are found in T.C.A. § 66-5-201 et. al. The 2015 Tennessee legislature has now added the additional requirement that all sellers of residential real property disclose the presence of any known sink hole on the property.  See Public Chapter 262.  This must be done in writing and prior to entering into a contract with the purchaser of the property.  Under the statute, the term “sink hole” is defined as follows: 

(2) For purposes of this section, “sinkhole”:

(A) Means a subterranean void created by the dissolution of limestone or dolostone strata resulting from groundwater erosion, causing a surface subsidence of soil, sediment, or rock; and

(B) Is indicated through the contour lines on the property's recorded plat map.

This new statute went into effect on July 1, 2015 and takes effect for all contracts entered into on or after that date.  This new statute is found in TCA § 66-5-212.  As a result, it is important for sellers of real property to inform purchasers of sink holes on their property.  If the seller of real property does not make this disclosure (as well as other required disclosures) the purchaser has certain remedies under Tennessee law.  Specifically, TCA § 66-5-208(a) provides as follows:

(a) The purchaser's remedies for an owner's misrepresentation on a residential property disclosure statement shall be either:

(1) An action for actual damages suffered as a result of defects existing in the property as of the date of execution of the real estate purchase contract; provided, that the owner has actually presented to a purchaser the disclosure statement required by this part, and of which the purchaser was not aware at the earlier of closing or occupancy by the purchaser, in the event of a sale, or occupancy in the event of a lease with the option to purchase. Any action brought under this subsection (a) shall be commenced within one (1) year from the date the purchaser received...

Tennessee’s One Year Personal Injury Statute of Limitations Extended to Two Years when Criminal Charges are Brought

The 2015 Tennessee legislature passed Public Chapter No. 388 that extends the typical one year statute of limitation for personal injury causes of action (as well as other cause of actions) in certain situations.  This new law went into effect for all causes of action that accrue on or after July 1, 2015.   This statute basically extends the typical one year statute of limitations for cases involving personal injury, libel, false imprisonment, malicious prosecution and compensatory or punitive damage claims under Federal Civil Rights statutes.  In order to take advantage of the two year statute of limitations extension, a criminal charge must be brought pertaining to the incident in question within one year of the incident by (1) a law enforcement officer; (2) a District Attorney General; or (3) a grand jury.  This statute only operates to extend the statute of limitations for the person injured by the criminal conduct. 

The entire new statute subsection (found in T.C.A. § 28-3-104(a)) provides as follows:

(a)(1) Except as provided in subdivision (a)(2), the following actions shall be commenced within one (1) year after the cause of action accrued:

(A) Actions for libel, injuries to the person, false imprisonment, malicious prosecution, or breach of marriage promise;

(B) Civil actions for compensatory or punitive damages, or both, brought under the federal civil rights statutes; and

(C) Actions for statutory penalties.

(2) A cause of action listed in subdivision (a)(1) shall be commenced within two (2) years after the cause of action accrued, if:

(A) Criminal charges are brought against any person alleged to have caused or contributed to the injury;

(B) The conduct, transaction, or occurrence that gives rise to the cause of action for civil damages is the subject of a criminal prosecution commenced within one (1) year by:

(i) A law enforcement officer;

(ii) A district attorney general; or