DISCLAIMER: For informational and educational purposes only. Nothing here is legal advice, a title opinion, or a commitment to insure, and no attorney-client relationship is created. No one may rely on this content for any transaction or legal decision. Coverage is governed solely by the terms of an issued policy or commitment, and requirements vary by state and underwriter. Consult your own attorney and underwriter. Views are my own and not those of my employer.

Title in a Minute with Shawn Tidwell

State Library

Tennessee

Mechanics' liens, recording formalities, future advances, subdivision rules, title premiums and recording taxes in Tennessee, in plain English with statute cites. Last researched Oct 2026.

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Title in a Minute · www.titleinaminute.com/library/states/tennessee · Printed reference copy.

DISCLAIMER: For informational and educational purposes only. Nothing here is legal advice, a title opinion, or a commitment to insure, and no attorney-client relationship is created. No one may rely on this content for any transaction or legal decision. Coverage is governed solely by the terms of an issued policy or commitment, and requirements vary by state and underwriter. Consult your own attorney and underwriter. Views are my own and not those of my employer.

Key quirkOn owner-occupied 1-4 unit homes, only the prime contractor has a lien.

Tennessee at a Glance

Topic Tennessee answer Where it comes from
When a lien attaches At visible commencement of operations (site prep like surveying, grading, and demolition doesn't count) Tenn. Code Ann. § 66-11-104
Prime contractor lien life 1 year after completion or abandonment, and suit must be filed within that time Tenn. Code Ann. § 66-11-106
Protect against buyers and lenders Lienor records a sworn statement within 90 days after completion or abandonment Tenn. Code Ann. § 66-11-112(a)
Notice of nonpayment Remote contractors on non-1–4-family jobs: within 90 days of the last day of each month of work Tenn. Code Ann. § 66-11-145
Notice of completion Owner records it; unrecorded claimants must serve notice within 10 days (1–4 family) or 30 days (other) or lose lien rights Tenn. Code Ann. § 66-11-143
Owner-occupied homes Only the prime contractor has a lien on owner-occupied 1–4 unit residential Tenn. Code Ann. § 66-11-146
Bond to discharge Bond in the amount of the lien claimed, with corporate surety, recorded with the register Tenn. Code Ann. § 66-11-142(a)
Deed execution Acknowledged before a notary, or proved by two subscribing witnesses Tenn. Code Ann. §§ 66-22-101, 66-5-106
Preparer / owner info Preparer's name and address; owner and tax-bill address on deeds Tenn. Code Ann. §§ 66-24-115, 66-24-114
Remote online notarization Yes, since July 1, 2019 (online notaries commissioned by the Secretary of State) Tenn. Code Ann. § 8-16-301 et seq.
Deed transfer tax Transfer tax $0.37 per $100 of the greater of consideration or value; paid by the grantee; oath of consideration required Tenn. Code Ann. § 67-4-409(a)
Mortgage/indebtedness tax Indebtedness tax $0.115 per $100, first $2,000 exempt; paid by the borrower; credit lines taxed on the stated maximum Tenn. Code Ann. § 67-4-409(b)
Future advances Open-end and obligatory advances relate back to recording if statutory requirements are met Tenn. Code Ann. §§ 47-28-103, -104
Title premium regulation Filed rates, usable 60 days after filing unless disapproved; rate structure varies by county Tenn. Code Ann. § 56-35-111; Tenn. Comp. R. & Regs. 0780-01-12

1. Mechanics' Lien Rules

Plain English

Tennessee mechanics' liens attach when work visibly starts, and they can be on the property for up to a year afterward, often without anything recorded. For a buyer or lender, the main protection is the Notice of Completion. Once the work is done, the owner (or the purchaser) records the notice and serves it on the prime contractor. Any claimant who hasn't already recorded must then serve a written claim within 10 days for a 1–4 family residential job, or 30 days for other projects, or lose its lien rights. Owner-occupied homes get extra protection: generally only the prime contractor can claim a lien.

Key Rules

Who has a lien and when it attaches.

  • A prime contractor's lien lasts 1 year after completion or abandonment of the improvement, and is lost unless suit is filed within that time (§ 66-11-106).
  • The lien attaches as of the visible commencement of operations (§ 66-11-104). Demolition, surveying, grading, utility work, fencing, and similar site work do not count as visible commencement. If all work stops for more than 90 days and then visibly resumes, liens for work after the restart attach only from the restart (§ 66-11-104(b)).
  • Liens are on parity and share pro rata, but laborers have priority (§ 66-11-107).

Recording to protect priority (§ 66-11-112).

  • To keep priority over later purchasers and encumbrancers without notice, a lienor must record a sworn statement of the amount due within 90 days after completion or abandonment of the improvement (§ 66-11-112(a)).
  • Before transferring the property, the owner must give 30 days' notice to prime contractors and to remote contractors who served a notice of nonpayment.
  • Abandonment means 90 days without work plus intent to abandon (§ 66-11-112(b)).

Remote contractors (subs and suppliers without a contract with the owner) (§ 66-11-115).

  • Must comply with § 66-11-145 (notice of nonpayment) and serve a notice of lien on the owner within the § 66-11-112(a) time (90 days after completion or abandonment).
  • The lien continues for 90 days from service, and suit under § 66-11-126 must be filed in that time.

Notice of nonpayment (§ 66-11-145). On projects other than 1–4 family residential, a remote contractor must serve a notice of nonpayment within 90 days of the last day of each month in which it furnished work and was not paid. Without it, there is no lien except for retainage.

Notice of completion (§ 66-11-143). The key protection for owners, buyers, and lenders.

  • Who records it: the owner or purchaser (or its agent or attorney), or a contractor the owner requires to do so, after completion. It is recorded with the register of deeds and simultaneously served on the prime contractor. A prime contractor not served keeps its lien rights (§ 66-11-143(a)).
  • Contents (§ 66-11-143(b)): legal owner name; prime contractor(s); property location and description; completion date; the statutory 10-day / 30-day statement; the name and address for serving claims; acknowledgment; and the preparer's name and address (§ 66-24-115). A statutory form is in § 66-11-143(g).
  • Remote contractors who served a notice of nonpayment must also be served; they get 30 days to respond. Remote contractors not served keep their rights (§ 66-11-143(d)).
  • The cutoff (§ 66-11-143(e)): a claimant that hasn't recorded its contract or sworn statement must serve written notice of its claim (amount, and a certification that it covers only this job) within 10 days after the notice is recorded for 1–4 family residential jobs, or within 30 days for other projects. If it doesn't, its lien rights expire.
  • A notice recorded before completion is void (§ 66-11-143(f)).

Residential protections (§ 66-11-146). For an owner-occupied residence of 1–4 units, only the prime contractor (the party in privity with the owner) has a lien. Where an owner acts as its own builder on a single-family home, liens are limited to those in privity.

Priority over mortgages (§ 66-11-108). A mechanic's lien is superior to a prior-recorded mortgage only for the improvement, and only if the lienor gave written notice to the mortgagee before starting work and the mortgagee consented or failed to object within 10 days.

No advance waivers (§ 66-11-124). A contract term waiving lien rights is void. However, a 100% payment bond recorded before work starts bars remote contractors' liens (§ 66-11-124(c)).

Bonding off (§ 66-11-142).

  • (a) A bond in the amount of the lien claimed, with a corporate surety, recorded with the register, discharges the lien and transfers it to the bond.
  • (b) Alternatively, a copy of a recorded payment bond may be recorded.

Enforcement (§ 66-11-126). By complaint and writ of attachment; suit filed within the statutory time is timely. The attachment bond is the lesser of $1,000 or the lien amount.

Spouse as agent (§ 66-11-103). When a spouse who is not separated contracts for an improvement to property owned by the other spouse or by both, the contracting spouse is treated as the other spouse's agent unless the other spouse serves the prime contractor with a written objection within 10 days after learning of the contract.

No general notice of commencement. We did not find a Florida- or Georgia-style notice of commencement statute for private projects in Tennessee.

Practice Points

  1. Use the Notice of Completion. On new construction or recent improvements, have the seller or buyer record a notice of completion after completion and serve the prime contractor and any noticing remote contractors. Hold the deletion of the mechanics' lien exception until the 10-day (1–4 family) or 30-day (other) window has passed with no claims served.
  2. Check visible commencement before the loan records. Because liens attach at visible commencement, a mortgage recorded after work started is at risk. Confirm by inspection and affidavit.
  3. Search for sworn statements and notices of nonpayment. Search the register for § 66-11-112 sworn statements and notices of lien, and ask the owner for any § 66-11-145 notices of nonpayment received.
  4. Owner-occupied homes. On owner-occupied 1–4 unit residential, focus on the prime contractor: get its final affidavit and lien waiver.
  5. Bonds. Confirm a § 66-11-142 bond equals the lien amount and has a corporate surety.

Citations

2. Execution and Notarization Requirements for Recording

Plain English

In Tennessee, a deed is entitled to be recorded if it is acknowledged before a notary (or another authorized officer), or proved by two subscribing witnesses. Notary acknowledgment is the norm. Every recorded instrument must show who prepared it, and deeds must show the owner's and tax bill's name and address. The deed must also carry the oath of consideration for the transfer tax. Tennessee has allowed remote online notarization since 2019.

Key Rules

  • Acknowledgment or proof (§§ 66-22-101, 66-5-106). Instruments are registered on acknowledgment by the maker before an authorized officer, or on proof by two subscribing witnesses.
  • Preparer (§ 66-24-115). The name and address of the person who prepared the instrument must appear on it.
  • Owner and taxpayer information (§ 66-24-114). Deeds must show the name and address of the owner and of the person responsible for paying property taxes (deeds of trust and mortgages excepted).
  • Oath of consideration (§ 67-4-409(a)). The grantee (or someone for the grantee) swears to the consideration or value, which appears on the face of the deed or an attached affidavit.
  • Remote online notarization (§ 8-16-301 et seq., effective July 1, 2019). A Tennessee notary may apply to the Secretary of State to become an online notary public and perform online notarizations by audio-video communication, following the procedures in § 8-16-310 and Tenn. Comp. R. & Regs. 1360-07-03. The online notary must be physically in Tennessee, and the acknowledgment must say the person appeared by audio-video communication (§ 66-22-101(d)).

Recordation taxes (§ 67-4-409).

  • Transfer tax: $0.37 per $100 of the consideration or the property's value, whichever is greater. Paid by the grantee. Exemptions are listed in the statute. A quitclaim is taxed on the actual consideration.
  • Mortgage tax: $0.115 per $100 of indebtedness over $2,000, paid by the mortgagor.
    • The instrument must include the statement: "Maximum principal indebtedness for Tennessee recording tax purposes is $ (amount)."
    • Lines of credit are taxed on the stated maximum. Tax on an increase beyond the stated maximum is due when the increase occurs and may be paid without penalty within 60 days.
    • Nonpayment does not affect the validity or priority of the lien (§ 67-4-409(b)(11)(A)), but it creates a tax lien and penalties (the greater of $250 or double the tax), and until the tax is paid the holder can't sue the debtor on the debt, other than an action to enforce the lien itself (§ 67-4-409(b)(14)).

Practice Points

  1. Check the face of the deed for the preparer, oath of consideration, and owner/taxpayer names and addresses before recording.
  2. Maximum principal statement. Make sure every deed of trust states its maximum principal indebtedness for recording tax purposes, and that the tax was paid on that amount.

Citations

3. Securing Future Advances

Plain English

Tennessee has a specific statute for open-end mortgages and mortgages securing future advances. If the deed of trust has the required statements, later advances get the same priority as the original recording. For an open-end (revolving) mortgage, the instrument needs specific notices, a 30-year limit, and a maximum credit limit. For commercial obligatory-advance loans, it needs a statement saying so. Optional advances under other mortgages lose priority to intervening interests the lender actually knows about.

Key Rules

  • Priority (§ 47-28-103). Advances under an open-end mortgage, and obligatory advances, relate back to the mortgage's recording. Optional advances under other mortgages are superior unless the mortgagee had actual notice of the intervening interest.
  • Open-end mortgage requirements (§ 47-28-104(a)). To get that priority, an open-end mortgage must contain:
    1. a statement conspicuously identifying it as an open-end mortgage;
    2. a stated term, with extensions, of no more than 30 years;
    3. a maximum principal credit limit;
    4. a conspicuous notice of the borrower's right to reduce the limit; and
    5. a provision on returning checks, cards, or other access devices after a notice of limitation.
  • Commercial obligatory advances (§ 47-28-104(b)). Must contain a statement identifying the mortgage as securing obligatory advances for commercial purposes.
  • Recording tax. Taxed on the stated maximum (§ 67-4-409(b)).

Practice Points

  1. Checklist the HELOC deed of trust against the five § 47-28-104(a) items before insuring priority of future advances.
  2. Commercial construction loans need the § 47-28-104(b) obligatory-advance statement.
  3. Payoffs. Get a freeze letter and the borrower's notice of limitation, and return of access devices, to stop new advances.

Citations

4. Subdivision Statutes and Regulations

Plain English

Tennessee subdivision control comes from the regional planning statutes (counties and regions) and the municipal planning statutes. A plat must be approved by the planning commission before the register will record it. Selling lots by reference to an unapproved plat is prohibited, and using a metes-and-bounds description doesn't get around it. Importantly for title, the conveyance itself is not void unless it was enjoined before recording.

Key Rules

  • No recording without approval (§ 13-3-402). The county register may not record a plat in a regional planning region unless it has been approved by the planning commission.
  • Transfers before approval (§ 13-3-410).
    • Transferring or selling land by reference to an unapproved plat is prohibited; a metes-and-bounds description does not exempt the transaction. The county may sue for an injunction.
    • Title is not affected (§ 13-3-410(c)). The title to land conveyed without complying is not affected, unless the transfer was enjoined before the deed was recorded.
  • Municipal subdivisions (§ 13-4-301 et seq.). Parallel rules for municipal planning commissions. § 13-4-306 has the same ban on transfers by unapproved plat, the same injunction remedy, and the same rule that title is not affected unless the transfer was enjoined before the deed was recorded.

Practice Points

  1. Confirm plat approval on any new subdivision: the plat should show the planning commission's certificate.
  2. Unapproved splits. A deed of an unapproved lot isn't void, but the owner may face permit denials. Consider an exception or underwriter review.

Citations

5. Title Premium Rates

Plain English

Tennessee is a filed-rate state. Each title insurer (or a rating organization on its behalf) files its rate schedule with the Commissioner of Commerce and Insurance. The rates can be used 60 days after filing unless the Commissioner disapproves them, and everyone must charge exactly the filed rates. A Tennessee quirk: what the premium covers varies by county. In some counties the rate is "all-inclusive" (it includes search and exam), in a few it's "semi-all-inclusive," and elsewhere it's "risk-only."

Key Rules

  • File and use after 60 days (§ 56-35-111). Insurers must file rate schedules (directly or through a rating organization under § 56-35-132). The Commissioner may disapprove within 60 days; absent disapproval, the rates may be used after 60 days. Only filed rates may be charged.
  • County rate structures (Tenn. Comp. R. & Regs. 0780-01-12-.02; TDCI Bulletin 21-03, Oct. 12, 2021). Rates are all-inclusive in some counties, semi-all-inclusive in others, and risk-only elsewhere. Under Bulletin 21-03 (based on the 2020 census), all-inclusive rates apply in Hamilton, Knox, Montgomery, Rutherford, Sumner and Williamson counties (population over 175,000 up to 700,000); all-inclusive rates except abstract charges apply in Davidson and Shelby (over 700,000); and risk rates apply in all other counties.
  • No rebates (§ 56-35-119). Rebates, discounts, or other inducements to applicants, lenders, brokers, or builders are prohibited.

Practice Points

Citations

6. Recording Taxes & Fees on Deeds and Mortgages

Plain English

Tennessee collects two recordation taxes at the register's office. The transfer tax on deeds is 37 cents per $100 of the price or value, whichever is greater, and the buyer pays it. The indebtedness tax on mortgages and deeds of trust is 11.5 cents per $100 of the loan, after the first $2,000. The borrower is liable for it. A credit-line deed of trust must state its maximum for Tennessee recording tax purposes.

Key Rules

(a) Deed transfer, conveyance or excise tax

  • Rate. $0.37 per $100 of the consideration or the value of the property, whichever is greater (§ 67-4-409(a)).
  • Who pays. The tax is on the grantee (buyer), per the Department of Revenue's Recordation Tax guidance.
  • Oath of consideration. The deed must carry a sworn statement of the consideration or value.
  • No local add-ons or mansion tax. The tax is for state purposes only, and no transfer tax is due until title is transferred by deed (§ 67-4-409(a)(1)(G)). We found no tax on transfers of entity interests.

(b) Mortgage, indebtedness or intangible tax

  • Rate. $0.115 per $100 of the principal indebtedness; the first $2,000 is exempt (§ 67-4-409(b)(5)), but per the Department of Revenue the $2,000 exclusion cannot be taken again on a later increase.
  • Who pays. The tax is on the mortgagor or debtor (§ 67-4-409(b)(5)). The holder of the debt must collect and remit it (§ 67-4-409(b)(13)).
  • Credit lines and future advances. The instrument should state: "Maximum principal indebtedness for Tennessee recording tax purposes is $___" (§ 67-4-409(b)(6)(C)). Tax is paid on that maximum, with no further tax for advances within it (§ 67-4-409(b)(6)(D)).
  • Increases. An increase beyond the stated amount is taxed on the increase. The tax is due when the increase occurs and may be paid without penalty within 60 days (§ 67-4-409(b)(9)).
  • Refinances and assumptions. A refinance creates new indebtedness and is taxed.
  • Multistate collateral. The tax may, optionally, be apportioned by the ratio of Tennessee collateral to total collateral (§ 67-4-409(b)(8)).

(c) Other recording taxes and fees

  • Register's fees (§ 8-21-1001). $10 per document of up to two pages (8½ x 14 or smaller), $5 for each additional page, $5 for each additional instrument in the document, $15 per plat, and a $2 fee per instrument (§ 8-21-1001(c)). Counties may also adopt a $2 e-filing fee. The register also charges $1 for issuing each recordation-tax receipt (§ 67-4-409(d)(3)).

Practice Points

  1. Worked example. $400,000 purchase with a $320,000 loan: transfer tax $1,480 (buyer); indebtedness tax on $318,000 = $365.70 (borrower).
  2. Every credit-line deed of trust: include the maximum-principal statement, or the register may tax a different amount.
  3. Refinances: budget the full indebtedness tax even with the same lender.

Citations

  • Tenn. Code Ann. § 67-4-409(a) (transfer tax) and (b) (indebtedness tax)
  • Tennessee Department of Revenue, Recordation Tax guidance (June 2026)
  • Tenn. Code Ann. § 8-21-1001 (register's fees)
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