Tennessee guide

Tennessee governance risk

Governance in Tennessee splits sharply between condos and HOAs. Condominiums have a real statutory floor under the Condominium Act of 2008 — annual meetings with defined notice (§66-27-408), records kept and reasonably available to owners (§66-27-417), board fiduciary or reasonable-care duties (§66-27-403), and the new reserve-study distribution duty.

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Planned-community HOAs have almost none of that: governance is set by the CC&Rs and bylaws plus the Tennessee Nonprofit Corporation Act, with no statutory open-meeting mandate, election standard, or records-access floor specific to HOAs. With no state regulator for either, the documents themselves reveal whether the board follows the rules that do apply.

Condo meetings and notice

Under §66-27-408, a condo association must hold at least one meeting per year, with notice not less than 10 nor more than 60 days in advance stating the time, place, attendance method, and agenda — including the general nature of any proposed declaration or bylaw amendment, budget change, or proposal to remove a director or officer. Read the minutes to confirm the notice and agenda rules were followed; defects are a governance red flag and can invalidate actions.

Condo records and reserve distribution

Section 66-27-417 requires the condo association to keep financial and other records in reasonable detail and make them reasonably available to owners for inspection and copying. The reserve-study mandate (§66-27-403(g)) adds a duty to distribute the study to owners. A board that resists records requests, or that has not distributed a required reserve study, signals governance weakness worth probing.

HOA governance runs on nonprofit law

Planned-community HOAs rely on the CC&Rs, charter, and bylaws plus the Tennessee Nonprofit Corporation Act (Title 48) for notice, meetings, voting, and member record-inspection rights. There is no statutory open-meeting mandate, no statutory election standard, and no HOA-specific records floor beyond general nonprofit law. Owner protections are therefore highly variable — read the bylaws to learn what protections, if any, actually apply.

Developer transition and common red flags

In newer condos, confirm whether the declarant still controls the board and when control ends (§66-27-503(13)); a stalled transition is a governance and financial risk. Other recurring red flags: improper meeting notice, selective covenant enforcement (a fair-housing exposure), records-access refusals, undisclosed board conflicts of interest, and bylaws not conformed to the 2008 Act or the reserve-study law. Read the minutes for these signals before you buy.

Tennessee legal references

Informational only. Not legal advice. Always confirm against current statute and counsel.

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Reviewer's checklist

  • Confirm the condo held its annual meeting with §66-27-408 notice and agenda
  • Read the minutes for notice defects or actions taken without proper agenda
  • Confirm records were made reasonably available (§66-27-417 for condos)
  • Confirm the reserve study was distributed to owners (§66-27-403(g))
  • For condos, confirm whether the declarant still controls the board (§66-27-503(13))
  • For HOAs, read the bylaws and CC&Rs to learn what governance protections apply
  • Check for selective or inconsistent covenant enforcement (fair-housing risk)
  • Look for undisclosed board conflicts of interest or related-party contracts
  • Confirm the bylaws are conformed to the 2008 Act and the reserve-study law
  • Weigh governance quality against the building's financial and physical needs

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