Tennessee Acreage Due Diligence

Septic and water

How do septic permits and private wells work?

In the sources we opened, the state agency handles septic permits. TDEC’s permit page sends applications for the subsurface sewage disposal system (SSDS) construction permit to its Division of Water Resources, and TDEC’s FAQ says “a septic system permit is required for the construction, modification or repair of a septic system.” It adds that a TDEC Environmental Scientist conducts a site evaluation to determine the type of system required and may request a soils map from a private licensed soil consultant (Note 1). The statute says anyone proposing to construct, alter, extend or repair a subsurface sewage disposal system must secure a permit from the commissioner (Note 2).

What goes into an application. TDEC’s permit page asks for the landowner, the location and size of the lot, and a sketch showing property lines, the house site, well and spring locations and planned driveway and utilities. It lists “soils maps by a soil scientist (if required)” and says a licensed engineer prepares the design for large conventional or alternative systems (Note 1). TDEC approves private soil consultants under rule 0400-48-01-.18 (Note 1).

What the permit does and does not tell you. TDEC’s permit and FAQ pages do not state how long a construction permit is valid (Note 1). The rule chapter text we read, which Justia reproduces (marked current through June 26, 2025, with a warning that it may not be the latest), says in section .06(4) that a construction permit “shall have an expiration date effective three (3) years from the date of issuance” (Note 2). We could not open the Secretary of State’s copy of the rule. Treat that as a question for TDEC, not a settled fact. For lot suitability, the same rule text (section .04) says site suitability must be demonstrated before design, looking at soil absorption rates, soil conditions, freedom from groundwater interference and topography. It calls slopes over 50 percent unsuitable and generally calls for the water table to be at least four feet below the bottom of the disposal field, with exceptions. The section text we read states no minimum lot size (Note 2). Existing systems: TDEC says records for existing septic systems can be found through its septic permit records search (Note 1).

If a county department issues the permit. Williamson County’s on-site sewage regulations, adopted by its Board of Health and shown as amended through March 18, 2025, say the county Department of Sewage Disposal Management regulates subsurface sewage disposal under state law, that the county has jurisdiction over septic installations within the county, including land inside its incorporated cities and towns, and that it is unlawful to construct, alter, extend or repair a system before obtaining a permit from the Department. They also say permits are governed by the regulations in effect on the date of issuance, and renewals by those in effect when the renewal is approved, and that a permit is not a guarantee a system will function for any period of time (Note 7). The sources we opened do not explain how county and state roles divide.

Sellers. For a sale of one-to-four-unit residential property that had a permit and a septic system installed, T.C.A. 68-221-409 (Justia copy) says the potential future obligation to connect to the public sewer system must be disclosed by the seller to the purchaser. The subsection does not say when (Note 2).

Private wells. TDEC says Tennessee licenses well drillers, pump installers and water treatment installers, and that drillers must file a Water Well Drillers Report to the Division of Water Resources. The owner should request a copy, and driller reports are public record (Note 3). TDEC says the state has no requirements for sampling and analysis of private water supplies, strongly recommends annual bacteria testing, and tells owners to ask a lender or buyer which parameters they require (Note 3).

Greenbelt, easements and property tax

What should you know about Greenbelt, conservation easements and property tax?

The Agricultural, Forest and Open Space Land Act of 1976, commonly called Greenbelt and cited as T.C.A. §§ 67-5-1001 et seq., values qualifying land by its present use rather than by the use that would support the highest value (Notes 9, 10). The Comptroller’s State Board of Equalization page lists these thresholds: agricultural land of at least 15 acres that is a farm unit in production or meets a 25-year farming and residence test; forest land of at least 15 acres with a forest management plan; and open space of at least three acres, which the county or municipal planning commission must first designate (Note 9). The assessor receives applications; the State Board of Equalization approves the forms and hears appeals of denied applications (Note 9).

Rollback tax. The Comptroller calls rollback taxes the taxes saved over the prior period, a recapture rather than a penalty: three years for agricultural and forest land and five for open space (Note 9). CTAS lists triggers that include land no longer qualifying, a written request to withdraw, development of land covered by a recorded subdivision plat or an unrecorded development plan, and failure to file a required application. It says the seller is liable unless a written contract provides otherwise, that a buyer who declares in writing at sale an intent to continue the classification but does not file within 90 days becomes solely responsible, and that rollback taxes are a first lien on the disqualified property (Note 10). The sources we opened state no rate, and we quote none.

Where the sources disagree. Filing dates differ. The Comptroller’s page says first-time applications are due March 15 (Note 9). The Rutherford County Assessor’s page says applications are due by March 1 in one place and March 15 in another, and that new owners of land in Greenbelt must reapply (Note 11). The Comptroller’s page says reapplication is not required unless ownership as of January 1 changes (Note 9). The Comptroller’s July 2020 handbook says an application must be filed with the assessor by March 1, and that after an ownership change a new application is due by March 1 of the following year; the handbook says its interpretations are general advice, not binding rulings, and that it has not been approved by the State Board of Equalization (Note 9). CTAS’s 90-day buyer rule above is a further timing rule (Note 10). Ask the assessor, in writing, which date applies to your closing.

Conservation easements. Tennessee’s Conservation Easement Act of 1981 (T.C.A. §§ 66-9-301 et seq.) defines, for easements granted on or after July 1, 2005, a conservation easement as “a nonpossessory interest of a holder in real property imposing limitations or affirmative obligations on the owner of the servient estate,” recorded in the register’s office of the county where the easement is located. A holder is a public body empowered to hold an interest in real property or a charitable corporation, association or trust whose purposes or powers include retaining or protecting the natural, scenic or open-space values of real property, and section 66-9-304(a), read in the American Farmland Trust copy, says an easement “shall remain severed from the fee unless returned by specific conveyance to the holder of the fee” (Note 16). The Land Trust for Tennessee, one holder, describes its easements as voluntary agreements that permanently limit how land can be developed and subdivided. It says the terms apply to all future owners, that owners keep ownership and may sell the land or transfer it to heirs, and that owners may still build under rights the easement reserves. It also says owners “may also be eligible for tax benefits” but that it cannot give legal or financial guidance (Note 16). Easements differ, so read the recorded instrument. Ask the title company whether one is recorded, and take any tax question to a tax advisor.

Property tax roles. The Comptroller says county assessors appraise property and the county commission sets the county tax rate; the Department of Revenue says it does not collect property tax and that county trustees and city collecting officials do, and the Comptroller says the State Board of Equalization provides quasi-judicial review of property tax assessments (Note 15). Request the current tax bill and the assessor’s parcel record, and check whether a city and county both tax the address.

Limits

What this guide does not decide

This guide is general information, not legal, tax, engineering or insurance advice. It does not decide whether a parcel can be built on, whether a septic system will be approved, whether an easement exists, or what any tax will be.

Survey and title. We did not find a state or Tennessee Bar page explaining what a survey shows versus what title insurance covers. The Tennessee Real Estate Commission’s page describes its role as regulating real estate brokers and lists no consumer guidance on surveys or title. Ask your attorney and your title company what the commitment excludes and what a survey would add.

Deed restrictions and covenants. These are recorded documents. Common categories include limits on use or building size, architectural or setback standards beyond zoning, utility and access easements, shared-road maintenance agreements and association obligations. Read the recorded instruments and the title commitment; this guide does not summarize any specific restriction.

Mineral and timber rights. We opened no Tennessee statute or agency page on mineral or timber rights, so we state nothing about them. Read the chain of title and ask your attorney whether any have been severed or reserved.

Other items. Lender and insurer requirements, electric and broadband service, the Comptroller’s property classification ratios, TDEC’s own description of conservation easements, and county rules we could not open (the Rutherford County subdivision regulations and the Williamson County flooding and Greenbelt pages) are outside what this guide confirms.