Understanding the Tennessee Condominium Act

What is the Tennessee Condominium Act?

The Tennessee Condominium Act of 2008 sets rules for condominiums created in Tennessee after January 1, 2009. It creates baseline standards for how condo associations operate, what unit owners can expect, and how boards handle records, budgets, enforcement, and collections.
 

When the Act applies

Tenn. Code Ann. § 66-27-202 says the Act applies fully to condominiums created in Tennessee after January 1, 2009.

It also says several key sections apply to older condos, but generally only for events happening after January 1, 2009. If your condo is older, check which sections apply before relying on legacy wording.
 

Declaration and plans

Tenn. Code Ann. § 66-27-301 generally provides that a condominium is created by recording a declaration, subject to other applicable laws. The declaration and recorded plans are the backbone of the community, because they define units, common elements, and voting and assessment allocations.

In day-to-day terms, the board should treat the recorded declaration as the “source document” and use it to anchor policy decisions and maintenance responsibilities, subject to the bylaws and other applicable laws.
 

What the board can do

Tenn. Code Ann. § 66-27-402 generally provides that the association (through the board) may adopt rules, adopt budgets and reserves, collect assessments, hire property managers, enter contracts, and regulate the use and maintenance of common elements, subject to the declaration, bylaws, and other applicable laws.

It also provides that the association may charge late fees and, after notice and an opportunity to be heard, levy reasonable fines for violations, as permitted by the declaration, bylaws, and other applicable laws. This discussion is high-level only; associations should adopt written enforcement policies and consult counsel regarding notice, hearing, and due-process requirements under the Act, governing documents, and applicable case law.
 

Bylaws

Tenn. Code Ann. § 66-27-406 generally provides that the bylaws must cover core governance items like the number of directors, officer titles, qualifications and removal rules, how vacancies are filled, what powers can be delegated, and how bylaws are amended, subject to other applicable laws.

In plain language: if your bylaws are vague, outdated, or missing key procedures, the association is operating with avoidable risk and confusion built in.
 

Board structure and turnover

Tenn. Code Ann. § 66-27-403 generally sets the framework for the board of directors and officers, including the transition away from developer (“declarant”) control, subject to the declaration, bylaws, and other applicable laws.

It also generally requires the association to be run by an executive board once unit owners are entitled to elect it, and it ties key governance mechanics back to the bylaws and the declaration. Turnover is not just a milestone, it is a compliance moment.
 

Reserve studies

Tenn. Code Ann. § 66-27-403 includes a reserve study requirement in certain situations, including when the board oversees common elements with an aggregate replacement cost exceeding $10,000, subject to other applicable laws.

It generally requires reserve study updates at least every five years when the requirement applies. The reserve study must be made available to unit owners when required under the statute and other applicable laws.
 

Maintenance responsibilities

Tenn. Code Ann. § 66-27-407 says the association is generally responsible for maintenance, repair, and replacement of the common elements, while unit owners are generally responsible for their units. It also allows the declaration to shift or clarify responsibility.

Boards should line up their maintenance matrix, reserve planning, and vendor scopes of work with what the declaration assigns, so owners are not surprised by who pays for what.
 

Insurance basics

Tenn. Code Ann. § 66-27-413 generally requires the association to carry insurance in the types and amounts described in the statute (including property and liability coverage standards), subject to the declaration, bylaws, and other applicable laws.

It also addresses who is covered, how proceeds are handled, and how insurance interacts with unit boundaries and common elements. Bottom line: insurance is not purely a “market choice,” it is generally part of statutory compliance and risk management.
 

Assessments and due dates

Tenn. Code Ann. § 66-27-414 authorizes the association to levy common expense assessments against units based on the allocations in the declaration. It also supports practical collection tools like interest on past-due assessments. Associations should confirm that their assessment notices and collection steps line up with the declaration allocations and adopted policies.
 

Records owners can review

Tenn. Code Ann. § 66-27-417 generally provides that the association must keep financial records detailed enough to comply with the resale disclosure requirements and that “all financial and other records” must be made reasonably available for examination by unit owners (and certain lenders and agents), subject to the declaration, bylaws, and other applicable laws. Good systems matter here: organized records, a clear request process, and predictable turnaround reduce disputes and build trust.
 

Resale disclosures

Tenn. Code Ann. §§ 66-27-502 and 66-27-503 generally require an association in a covered residential condominium to provide certain resale information within 10 business days after it receives a written or electronic request, subject to the current Tennessee Code and any applicable exceptions.

Associations are generally allowed to charge a reasonable fee. This is the legal backbone for the “resale package” many sellers, buyers, and lenders request; consult the current Tennessee Code and your governing documents to confirm requirements.
 

Meetings, quorums, and proxies

Tenn. Code Ann. § 66-27-408 generally requires at least one association meeting each year and generally sets a 10-to-60-day notice window with agenda disclosure requirements, subject to the current Tennessee Code and the association’s governing documents.

Tenn. Code Ann. § 66-27-409 generally sets default quorums (20% for unit owners unless bylaws say otherwise; 50% for boards unless bylaws require more, subject to any different requirements in the current Tennessee Code and applicable governing documents).

Tenn. Code Ann. § 66-27-410 generally allows proxy voting and ties proxy duration to Title 48 rules, consult the current Tennessee Code and your governing documents to confirm requirements.
 

Amending the declaration

Tenn. Code Ann. § 66-27-317 sets the process for amending the declaration, including baseline approval thresholds and recordation requirements. It also limits how long someone has to challenge an amendment in court, which encourages owners to raise concerns early.

Practically: if your board is updating restrictions, maintenance obligations, or voting allocations, the amendment process must be followed exactly or the change can be vulnerable.
 

Ending the condominium

Tenn. Code Ann. § 66-27-318 allows termination of the condominium, but it requires high approval thresholds and a formal termination agreement recorded in the land records. This is not an everyday issue, but it matters when communities face major casualty events, redevelopment pressure, or long-term viability questions.

If termination is ever on the table, it is a legal and operational project that requires careful planning.
 

Compliance tips for board members

• Keep your governing documents handy and current: Use them as the baseline for decisions and update policies when practices drift.
   
• Put key actions in writing: Document votes, approvals, enforcement steps, and the reasons behind major decisions in meeting minutes.
   
• Use consistent, predictable processes: Apply rules consistently to minimize claims of unfair treatment.
   
• Give notice and an opportunity to respond: Before taking enforcement action, communicate clearly and allow owners to be heard. This discussion is high-level only; associations should adopt written enforcement policies and consult counsel regarding notice, hearing, and due-process requirements under the Act, governing documents, and applicable case law.
   
• Maintain clean financial records: Track income/expenses, reserves, delinquencies, and approvals so your reports are accurate and defensible.
   
• Adopt budgets and reserve plans on schedule: Review funding needs annually and adjust for inflation and aging components.
   
• Protect access to records: Have a simple request process and a consistent approach to redactions and privacy.
   
• Run meetings by the book: Provide timely notice, publish agendas when required, confirm quorum, and record votes.
   
• Review insurance annually: Confirm insurance coverage matches your property and responsibilities, and keep certificates and policies organized.
   
• Train and onboard board members: Provide a short orientation on board member duties and decision-making procedures.
   
• Know when to bring in professionals: Involve legal counsel, a CPA, engineers, your property manager, and reserve specialists when issues are complex or high-risk.

About FirstService Residential

FirstService Residential supports Tennessee condominium communities with local expertise backed by national resources. Our teams help boards stay organized with governance support, recordkeeping systems, financial management, vendor coordination, resident communication, and 24/7 customer care. We help boards apply consistent processes that align with their governing documents and Tennessee law, so board members can focus on long-term goals instead of day-to-day administration.

FirstService Residential does not provide legal, tax, accounting, engineering, or insurance brokerage advice. Boards should retain appropriate licensed professionals for such advice.

Contact a member of our team today to learn more.

This information is provided for general informational purposes only and is not intended to constitute, and should not be relied upon as, legal, regulatory, financial, or operational advice, or as a representation or guarantee of any specific services, capabilities, or outcomes. Property management needs, regulatory requirements, market conditions, and available services vary by jurisdiction, property type, and community. FirstService Residential provides services through locally based affiliates and associates, and services and results may vary by community, region, contractual terms, and applicable law.