Buying a Home in Memphis
Buying in Memphis uses standard Tennessee Association of Realtors (TAR) contract forms with a 7-14 day inspection period -- genuinely more flexible than some states' fixed option-period structures -- and, unlike Georgia's attorney-mandatory closings covered elsewhere in this project, Tennessee makes attorney involvement optional, with title companies handling most residential closings.
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Learn moreThe Inspection Period and Earnest Money
Tennessee residential purchase contracts typically use Tennessee Association of Realtors (TAR) forms with an inspection contingency window commonly cited as 7-14 days -- inspections (home, termite, radon, HVAC, and others as applicable) must be completed and any Repair/Replacement Proposal submitted by the deadline specified in the contract. The buyer's agent files a Buyer's Inspection Notice (TAR Form RF651) listing requested items, and the seller responds via Form RF604 -- accepting, counter-proposing, or refusing. Earnest money in Tennessee typically runs 1-2% of the purchase price, with higher amounts common in more competitive markets; it is held in a brokerage or title company escrow account until closing, not paid directly to the seller.
Attorney Involvement Is Optional, Not Mandatory
Unlike Georgia, where state law requires a licensed attorney to conduct every residential closing (an 'attorney state,' covered in Georgia's own build elsewhere in this project), Tennessee does not require attorney involvement in a standard residential closing -- transactions are typically closed by either a real estate attorney or a title company. When an attorney is used, average fees run around $291/hour, with many attorneys offering flat fees of $750-$1,250 for straightforward closings (Middle Tennessee sources cited a $500-$1,500 range depending on complexity). Title company closing fees run separately, with settlement/closing fees commonly cited around $495 and additional title company fees around $325.
Closing Costs and a Genuine Tennessee Quirk on Title Insurance
Average total closing costs in Tennessee run about 2.98% of a home's sale price, with buyer-side closing costs commonly cited in a 2%-5% range and seller-side costs running considerably higher, 6%-10%, largely due to real estate commissions. Owner's title insurance runs around 0.51% of the sale price. A genuine Tennessee-specific quirk worth knowing: Tennessee is one of the few states where sellers, rather than buyers, typically pay for the lender's title insurance policy -- confirm this with a specific contract, since it affects how closing costs are allocated between the parties.
Property Tax Relief Programs to File For After Closing
Tennessee does not use a general dollar-value homestead exemption the way some other states do. Instead, homeowners 65 and older (or disabled, or qualifying veterans) may be eligible for the statewide Tennessee Property Tax Relief program, a reimbursement administered by the Tennessee Comptroller's Office for homeowners with income at or below $38,470 (2026 threshold). Shelby County separately runs its own additional Tax Freeze program for homeowners 65 and older with combined household income under $61,920 (a 2024-cited threshold), which freezes the base tax amount rather than reimbursing a paid amount. See the property-taxes topic page for the full detail on both programs and their different eligibility thresholds.
One County Simplifies the Process
Because the entire city of Memphis sits inside a single county (Shelby County), buyers don't face the same cross-county filing-office or millage-rate confusion that a multi-county city like Atlanta requires navigating -- there's one Shelby County Assessor and one Shelby County Trustee to work with for the large majority of Memphis addresses, though buyers considering an address just outside city limits should still confirm whether it falls within Memphis-Shelby County Schools or one of the six separate municipal school districts (see the moving and schools topic pages).
Key takeaways
- Tennessee's standard TAR purchase contract includes a 7-14 day inspection period, with earnest money typically 1-2% of the purchase price held in escrow until closing.
- Unlike Georgia, Tennessee does not require an attorney at closing -- either an attorney or a title company can close a residential transaction, with attorney flat fees commonly $750-$1,250 for straightforward deals.
- Total closing costs average about 2.98% of the sale price; a genuine Tennessee quirk is that sellers, not buyers, typically pay for the lender's title insurance policy.
- Tennessee has no general homestead exemption; instead, a statewide Tax Relief reimbursement program (income at or below $38,470, 2026) and Shelby County's own separate Tax Freeze program (income under $61,920, 2024-cited threshold) both target seniors, disabled residents, and qualifying veterans specifically.
- The entire city of Memphis sits inside one county (Shelby County), simplifying tax and filing administration relative to multi-county metros -- though the specific school district for an address still requires confirmation.
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