House Bill 781 amends Tennessee Code Annotated, Title 66, by introducing a new part that defines and regulates the wholesaling of real property. The bill defines "equitable interest" as the right of a buyer to benefit from real property after entering into a purchase contract but before the legal title is transferred. It establishes that a buyer engages in wholesaling when they assign their equitable interest to a subsequent purchaser for a higher price.

Additionally, the bill outlines specific requirements for buyers engaging in wholesaling, including the necessity to disclose their equitable interest and intent to market it to both the potential purchaser and the seller at least three business days prior to any assignment. These disclosures must be made in bold, large font within the written agreement. The bill also stipulates that any action for violation of these provisions must be initiated within two years of the contract execution and clarifies that these regulations apply solely to transactions involving real property.