General information for land sellers, not legal or tax advice

Selling Land in Coffee County, TN

Selling land is different from selling a house. Buyers of acreage and lots around Manchester and the rest of Coffee County want to know what they can do with the property, and the answers usually sit in a handful of records: the survey, the soil and septic history, the tax status and the access. Here is how I help land sellers get ready, using what Tennessee law, the Tennessee Comptroller, the Tennessee Department of Environment and Conservation (TDEC) and the Coffee County Register of Deeds say.

This is general information, not legal or tax advice. Every tract is different, so please talk with a Tennessee attorney or your closing agent about your own sale.

What land buyers ask first

Once a buyer walks the property, the questions come quickly. Have answers ready for:

Access. How do you reach the land, is there road frontage, and if access is by easement, is it recorded?
Boundaries. Where are the corners and lines, and is there a recorded plat or boundary survey?
Septic suitability. Has the soil been evaluated for a septic system, and for how many bedrooms?
Utilities. Does public water reach the property, and what will it take to bring electric service to a building site?
Zoning and rules. What can be built, and are there restrictions on splitting the tract or adding homes?
Taxes. Is the land enrolled in greenbelt, and what happens to the tax status after the sale?

My land buying guide shows the checklist buyers use. The more of it you can answer up front, the easier your sale tends to go.

Greenbelt and rollback taxes

Many larger tracts in Tennessee are taxed under greenbelt, the common name for the Agricultural, Forest and Open Space Land Act of 1976. The Tennessee Comptroller explains that qualifying land is valued by its present use, which often means a lower assessment. My greenbelt guide covers who qualifies. For a seller, the key points are:

Ownership changes matter. The Comptroller says reapplication is not required unless ownership changes. A buyer who wants to keep the classification needs to file their own application. TCA 67 5 1008 also makes the applicant responsible for promptly notifying the assessor of any change in use or ownership that might affect eligibility.
How rollback is figured. If land leaves greenbelt, the assessor computes the taxes saved for the preceding three years for agricultural and forest land, or five years for open space land, under TCA 67 5 1008. The Comptroller describes rollback as a recapture of taxes saved, not a penalty.
When it is due. The statute says rollback taxes are payable from the date the assessor gives written notice and become delinquent on March 1 of the following year.
It follows the land. Under the same section, rollback taxes are a first lien on the disqualified property, like other property taxes, and are also a personal responsibility of the current owner or seller as provided in the law.
Splitting off part of a tract. The statute lists land covered by a recorded subdivision plat or plan of development as a trigger when any portion is being developed, with only the phases or sections being developed disqualified. If only part of a parcel owes rollback, the assessor apportions it.

Who pays rollback taxes when land sells

TCA 67 5 1008(f) answers this directly. If the sale will result in the land being disqualified from greenbelt, whether because of a change to an ineligible use or otherwise, the seller is liable for the rollback taxes unless a written contract provides otherwise. The same subsection says that if the buyer declares in writing at the time of sale an intention to continue the greenbelt classification but fails to file the forms needed to continue it within 90 days of the sale date, the rollback taxes become solely the buyer's responsibility.

Because the statute allows a written contract to say otherwise, put the greenbelt plan and the rollback responsibility in writing in your purchase contract. Ask your attorney or closing agent how to word it for your sale. The Coffee County Assessor of Property can tell you how your parcel is classified. Its office number listed by the Register of Deeds is (931) 723 5126.

Septic and soil records

Most rural land in the county is not on public sewer, so a buyer who plans to build will need a septic system. TDEC permits septic systems in Coffee County. According to TDEC, an Environmental Scientist evaluates the site to decide what type of system is needed and may ask for a soils map from a licensed soil consultant. TDEC asks that the soil not be disturbed before the evaluation, so hold off on grading a possible house site.

What helps a seller:

Gather what exists. Look for any soil evaluation, septic permit, certificate of completion or TDEC inspection letter. TDEC keeps an online Search for Septic Tank Permits, linked from its septic FAQs.
Check dates on permits. Under TDEC rule 0400 48 01 .06, a septic construction permit has an expiration date three years from the date it is issued. If you hold an older permit, a buyer will want to know whether it is still valid for their plans.
Know the disclosure rule on soil tests. TCA 66 5 212 requires a seller, before entering into a contract, to disclose in the contract or in writing the results of any known percolation test or soil absorption rate on the property that is determined or accepted by TDEC, and any known exterior injection well or sinkhole. Ask your attorney how this applies to your tract.

If the land already has a home on septic, my septic systems guide explains what buyers will check.

Does the seller disclosure law apply to land?

The Tennessee Residential Property Disclosure Act starts at TCA 66 5 201. That section says the part applies only to transfers of residential real property with one to four dwelling units, including site built and nonsite built homes. If your acreage includes a home, the disclosure rules in my Tennessee seller disclosure guide likely apply, subject to the exemptions in the statute. If you are selling a tract with no dwelling on it, ask your attorney whether the disclosure statement and the related sections apply to your sale. Either way, sharing the records you have in writing helps buyers make informed decisions and can prevent disputes later.

Surveys, plats and splitting a tract

A current survey answers the boundary and access questions before a buyer asks. Tennessee requires land surveyors to be registered. Under TCA 62 18 101, it is unlawful to practice or offer to practice land surveying in the state unless the person is registered or exempt.

The Coffee County Register of Deeds records subdivision plats and boundary surveys, and it says:

Subdivision plats, and plats that divide land into lots of less than 5 acres, must be approved by the planning and zoning department before recording
All plats need the original seal and signature of the surveyor to qualify for recording
The office can often provide a copy of a recorded plat or survey for a property

If you are thinking about selling off part of your land, talk with a surveyor and the Coffee County Codes Compliance office at 1329 McArthur Street in Manchester before you list. That office handles zoning and permits outside city limits. Inside Manchester or Tullahoma, check with the city.

Documents to gather before you list

Your deed and any recorded plat or boundary survey
Any recorded easements for access or utilities
Greenbelt paperwork and recent tax bills
Soil evaluations, septic permits, certificates of completion or TDEC letters
Information about water, electric and other utility service at or near the property
Any restrictive covenants that apply to the land
Contact information for any lender, so payoff figures can be ordered

The Register of Deeds notes that its records are open to the public and that documents recorded since January 17, 1990 can be viewed through TitleSearcher on a subscription basis. It also says it does not perform title searches and cannot prepare documents or give legal advice. A title company or attorney handles the title search, and an attorney can prepare documents.

Closing costs on a land sale

The state recordation tax applies when your deed is recorded. Under TCA 67 4 409, the realty transfer tax is 37 cents per $100 of the consideration or the value of the property, whichever is greater, and the statute says it is paid by the grantee, which is the buyer. Your purchase contract can set who pays which costs. The Coffee County Register of Deeds also charges recording fees by the page. My seller closing costs guide covers the rest of the list, including payoffs, prorations and commission, which is negotiable.

Pricing land with a local agent

Land is harder to price than a typical house because no two tracts are alike. When I prepare a price recommendation, I look at recent sales of comparable land in the area along with the things buyers weigh most: access and road frontage, usable acreage and terrain, septic suitability, available utilities, zoning, any flood zone and the greenbelt picture. I will show you the sales behind my recommendation, and the final decision is always yours.

How I help land sellers

When we work together, I will help you gather the records above before you list, flag questions a buyer is likely to raise, and market the property to buyers looking for land in Coffee County. I will also coordinate with your surveyor, attorney and closing agent so the greenbelt plan, access and other terms are clear in the contract. Legal and tax questions go to your Tennessee attorney or tax professional.

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Common questions

Who pays rollback taxes when greenbelt land is sold in Tennessee?

Under TCA 67 5 1008(f), if the sale results in the land being disqualified, the seller is liable for rollback taxes unless a written contract provides otherwise. If the buyer declares in writing an intention to continue greenbelt but does not file within 90 days of the sale, the rollback taxes become solely the buyer's responsibility.

How many years of rollback taxes are due in Tennessee?

The assessor computes the taxes saved for the preceding three years for agricultural and forest land, or five years for open space land, under TCA 67 5 1008.

Does the buyer have to reapply for greenbelt?

Yes, if they want to keep it. The Tennessee Comptroller says reapplication is required when ownership changes.

Do I have to disclose a perc test when selling land in Tennessee?

TCA 66 5 212 requires a seller to disclose the results of any known percolation test or soil absorption rate determined or accepted by TDEC before entering into a contract. Ask your attorney how it applies to your tract.

Do I need a survey to sell land in Coffee County?

A current survey answers boundary and access questions for buyers. The Coffee County Register of Deeds says plats that divide land into lots of less than 5 acres must be approved by planning and zoning, and all plats need the surveyor's original seal and signature to be recorded.

Matt Sargent is a Tennessee licensed affiliate broker with Keller Williams who helps buyers and sellers in Manchester and Coffee County. Call (615) 497 1658 or send a message.