Under the Tennessee Residential Property Condition Disclosure Act, all of the following property transfers are exempt from the mandatory disclosure requirement EXCEPT:

Correct Answer

D) A transfer of a single-family home by a private seller to an unrelated buyer in an arm's-length transaction.

Under Tenn. Code Ann. § 66-5-201 et seq., a standard arm's-length sale of a 1-4 unit residential property by a private seller to an unrelated buyer is the core transaction to which the disclosure requirement applies — it is NOT exempt. The statute specifically exempts foreclosure sales, new construction covered by a builder's warranty, and transfers between co-owners (among other enumerated exemptions), but a typical private sale is the paradigm case requiring the full Property Condition Disclosure form.