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Practice Of Real EstateState SpecificHARD

A Tennessee county had a population of 68,000 at the time of the previous federal census but grew to 81,000 according to the most recently completed federal census. A landlord in that county collected a security deposit equal to three months' rent from a new tenant, arguing that when the lease was signed the county was still governed by the old census figure below 75,000. The tenant disputes this and claims the Act now applies. Which of the following best describes the legal situation?

Correct Answer

B) The Act now applies because the county's population exceeds 75,000 under the most recent federal census, and the three-month security deposit likely exceeds the statutory two-month maximum.

Under Tenn. Code Ann. § 66-28-101, the Act's applicability is determined by the most recent federal census. Once the most recent census shows the county's population exceeds 75,000, the Act applies in that county. The landlord's argument that the prior census figure governs is not supported by the statute—applicability follows the current census data. With the county now qualifying, the security deposit cap of two months' rent under Tenn. Code Ann. § 66-28-201 applies, and a three-month deposit would exceed the statutory maximum.

Answer Options
A
The Act does not apply because the lease was negotiated when the county's population was below 75,000, and existing lease terms are grandfathered under the prior census.
B
The Act now applies because the county's population exceeds 75,000 under the most recent federal census, and the three-month security deposit likely exceeds the statutory two-month maximum.
C
The Act applies retroactively to all leases signed in the county going back five years from the date the new census was published.
D
The Act does not apply because a county must formally petition TREC to be added to the list of covered counties before the statute takes effect.

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Related Topics & Key Terms

Key Terms:

landlord_tenant_actcensus_thresholdapplicabilitysecurity_depositpopulation_changeadvanced_scenario

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