Chattanooga TN FSBO Disclosure Requirements — Including Flood Plain Rules (2026)

Tennessee's Residential Property Condition Disclosure Form covers the core requirements. Chattanooga-specific issues include the Tennessee River and Chickamauga Lake flood system, hillside stability on Lookout Mountain and Signal Mountain, and the Georgia-Tennessee border complexity for properties on the metro's south side.

Tennessee Disclosure Framework

TCA §66-5-202 requires the Tennessee Residential Property Condition Disclosure Form. Sellers provide it before or at contract; buyers have 3 business days to rescind after receipt. The form uses "Aware/Not Aware/Unknown/N/A" format for all material property conditions.

Sellers who answer "Aware" must explain the condition. Answering "Not Aware" when you actually know of a condition creates post-closing liability under Tennessee's fraud and misrepresentation law.

Tennessee River and Chickamauga Lake Flood Plains

TVA's dam system manages water levels on Chickamauga Lake, which backs up to downtown Chattanooga. TVA's operational control generally limits flooding compared to free-flowing rivers, but FEMA still designates flood zones along the river corridor and in low-lying Hamilton County areas.

Key flood-zone areas in the Chattanooga metro:

Check your current FEMA designation at msc.fema.gov. If in a Special Flood Hazard Area, buyers with federally backed mortgages must carry flood insurance. Flood insurance costs materially affect affordability — disclose your flood zone status clearly rather than leaving buyers to discover it at the lender.

Disclose any prior flooding during your ownership. "Sunny day" flooding (street or yard flooding from high water events) is also material even if the structure itself wasn't affected.

Hillside Property Stability

Chattanooga's geography features significant hillside development on Lookout Mountain, Signal Mountain, Missionary Ridge, and Walden's Ridge. Properties on these slopes have specific stability considerations:

Soil creep: On clay-bearing slopes, soil slowly migrates downhill over decades. Signs include tilted retaining walls, soil buildup at base of structures, and doors that have gradually become difficult to open.

Retaining walls: Hillside lots often have retaining walls that require periodic maintenance and inspection. Disclose any retaining wall failures, repairs, or assessments.

Drainage: Slope drainage that concentrates water near the foundation creates accelerated weathering and potential foundation undermining. Disclose any foundation drainage systems.

Rockfall: Some Lookout Mountain properties near rocky outcroppings theoretically face rockfall hazard. This is situation-specific — if your property is near a rocky cliff face, note it.

Georgia-Side Properties — Use Georgia's Form

If your property is in Catoosa County (Ringgold, Fort Oglethorpe, Tunnel Hill), Walker County (Lafayette, Rossville), or Whitfield County (Dalton, Chatsworth) — even if served by Greater Chattanooga MLS — you are in Georgia and must use Georgia's Seller Property Disclosure Statement, not Tennessee's form.

Georgia and Tennessee have different disclosure forms, different transfer tax structures, and different closing customs. Using the wrong state's form creates legal compliance issues. Determine your state before selecting your disclosure documentation.

Lead Paint Disclosure — Chattanooga's Historic Housing

Chattanooga's historic neighborhoods (Southside, North Shore, Avondale, Fort Wood, Hill City, St. Elmo) contain significant pre-1940 housing stock. The Federal Lead-Based Paint Disclosure form and EPA pamphlet are required for all homes built before 1978.

Tennessee Transfer Tax

Tennessee charges approximately $0.37 per $100 of consideration (state $0.37 per $100, county portion varies). On a $330,000 sale: approximately $1,220 combined. Seller's cost at closing.