Buying a new build in Middle Tennessee

The sales agent in a model home usually works for the builder. A Tennessee licensee must tell you, before providing services, whether they represent you, the seller or neither, and confirm it in writing before an offer is prepared ^[1]. Every licensee owes every party honesty, reasonable care and disclosure of adverse facts they know ^[2]. You can bring your own agent. Since August 17, 2024, NAR members sign a written agreement with a buyer before touring homes, and compensation is negotiable ^[3]. Some builders have rules about registering your agent at the first visit, so ask before you walk in.

Builders write their own purchase agreements. Read the completion date and delay terms, change orders, allowances, who holds the earnest money and when it becomes non-refundable, arbitration, warranty and disclaimer language, and the HOA declaration. A Tennessee real estate attorney can review it. Tennessee courts recognize an implied warranty that a builder-sold new home is free of major structural defects and built in a workmanlike manner, but only when the written contract is silent. A builder's contract can replace or disclaim it in writing ^[4]. Read the builder's own written warranty: what it covers, for how long, and how a claim is made. For FHA and VA loans, the builder signs a one-year warranty on conformity to plans and defects in materials and workmanship ^[5]. Tennessee generally bars construction defect suits filed more than four years after substantial completion, and shorter deadlines can apply ^[6].

A Tennessee contractor license is required for any project costing $25,000 or more, materials and labor included ^[7]. Check a builder's license at verify.tn.gov ^[8]. An owner may build one home every two years for personal use without a license, but anyone hired for $25,000 or more of work must be licensed ^[9]. The statewide residential code is the 2018 International Residential Code with state amendments, and the energy code is the 2018 IECC, both effective July 16, 2020 ^[10]. Many Middle Tennessee counties and cities run their own permits and inspections. The state issues residential permits only where local government doesn't enforce codes and hasn't opted out ^[11]. Under the state program, inspections come at the foundation before the pour, at framing and rough-in, and at final before occupancy ^[9]. You can also hire your own inspector before the pour and before drywall, if the contract allows site access.

Many counties and cities charge one-time growth fees on new homes. As of October 2026, from each one's official schedule:

• Rutherford County: a School Facilities Tax of $1.50 per square foot for permits issued on or after October 1, 2024 ^[12].
• Murfreesboro: a single-family impact fee of $2.50 per square foot as of July 1, 2025, capped at $10,952 per home ^[13].
• Sumner County: an Adequate Facilities Tax of $0.70 per square foot, paid at the building permit ^[14].
• Williamson County: an education impact fee tiered by home size ^[15]. Confirm the current schedule with the county.

Ask the builder which fees apply to your lot and whether the price includes them.

Tennessee values property as of January 1. A home still under construction that day is assessed on the value of its materials ^[16]. A home finished between January 1 and September 1 gets a prorated assessment for the rest of that year ^[16], so the first bill can be small and the next one larger. Ask the closing attorney or title company how taxes were prorated at closing.

A seller may not require you to buy title insurance from a particular company as a condition of the sale ^[17]. If a builder refers you to an affiliated lender or title company, you get a written Affiliated Business Arrangement Disclosure, and using the affiliate can't be required ^[18]. Every lender gives a standard Loan Estimate within three business days of an application, so a builder's preferred lender is easy to compare with others ^[19]. Rate locks commonly run 30, 45 or 60 days, and extending one can be expensive, so match the lock to a realistic completion date ^[20]. Your lender must give you a copy of the appraisal promptly, or at least three business days before closing ^[21].

Where there's no public sewer, Tennessee requires approval of the septic plans and the lot's suitability before a home can be built ^[22]. Williamson County runs its own septic program; elsewhere in our counties, TDEC issues the permits ^[23]. The state must decide a septic permit within 45 days of receiving everything it needs ^[24]. Water comes from a utility tap or a well, and every well driller must be state-licensed ^[25]. A driveway onto a state highway needs TDOT approval first ^[26]. Read the recorded restrictions and order a survey before you close on the lot.