Buying Land in Tennessee: Loans, Checks, Greenbelt and Closing

Quick answer (as of November 2026) Buying land in Tennessee runs like buying a house, with more checking and a different loan. Fannie Mae doesn't buy mortgages on vacant land, so bare land is bought with cash or a land loan from a lender that makes them. Before you're locked in, check the survey, the title and legal road access, FEMA's flood map, the septic permit (from TDEC in most counties, or from the county in nine, including Williamson and Davidson), utilities, zoning lot size and any recorded restrictions. If the land is in greenbelt, a sale that disqualifies it makes the seller liable for rollback taxes unless a written contract says otherwise, so settle that in the contract. This is general information, not legal advice.

Send me the moving guide

You found 20 acres on a county road, and the price looks fair next to what a house costs. What the listing can't tell you is whether a lender will finance it, whether the soil will take a septic system, and whether the seller's greenbelt tax break becomes your bill after closing.

I work with land buyers across Middle Tennessee, and I've been investing in real estate since 2005. On every tract, I check the county, the zoning, the road access, the flood map and the septic answer before you're past your due diligence period. Send me the listing or the parcel number and I'll run those checks with you. DM me, text or call 615-392-1186.

How do you buy land in Tennessee?

You buy land in Tennessee in six steps, and most of the work happens before closing:

1. Find out which county the land is in and whether it's inside a city, because that decides whose zoning and permits apply.
2. Line up the money: cash, a land loan, or a construction loan if you'll build right away.
3. Make an offer on a land contract with a due diligence period long enough for the survey, soils and septic work.
4. Run the checks: survey, title, access, flood, septic, utilities, zoning and restrictions.
5. Settle greenbelt and rollback taxes in writing if the land is in greenbelt.
6. Close with a title company or closing attorney, who records the deed with the county.

If you're moving here from another state, my guide to buying a house in Tennessee from another state covers the parts of a long-distance purchase that apply to land too.

Can you get a loan to buy land in Tennessee?

Yes. Bare land is bought with cash or a land loan, because a standard home mortgage won't usually cover it. Fannie Mae's Selling Guide says it doesn't buy or securitize mortgages on vacant land or land development properties, farms or ranches, or properties that aren't reachable by roads that meet local standards, so a bare tract goes to a lender that makes land loans.

Local banks, credit unions and farm lenders make land loans, and I can connect you with a lender who does. Down payments, terms and acreage rules vary by lender, so get each one's terms in writing before you write an offer.

Here's how the main ways to pay for land compare, as of November 2026:

USDA and FSA details are from each agency's program page, as of November 2026. Confirm current terms with the agency or lender.

Can you use a USDA loan to buy land in Tennessee?

Sometimes, if a house comes with it. USDA's Section 502 Guaranteed program lists "a site with a new or existing dwelling" among its uses, with no set acreage limit, so it fits land with a house on it or one being built, not bare land by itself. USDA also keeps a list of lenders that make single-close construction-to-permanent loans under the program.

The Section 502 Direct program, which USDA makes itself, can be used "to purchase and prepare sites, including providing water and sewage facilities," but it's limited to low and very low income applicants who can't get a loan elsewhere and will live in the home. Both programs only work in eligible rural areas, so run the address through USDA's eligibility map before you count on either one.

If you're buying farmland to farm, the USDA Farm Service Agency's Farm Ownership Loans cover the purchase of farmland. FSA asks for education, training or experience managing a farm, and you apply at your local FSA office.

What should you look for when buying land in Tennessee?

Look for the things that decide whether you can use the land the way you plan to: a clean survey, clear title, legal road access, a building site out of the flood zone, an approved septic site, utilities, the right zoning and no recorded restriction that blocks your plans. Here's who answers each one:

Put the checks that take time, like the survey and the soils work, inside your due diligence period, and make the offer contingent on the answers you need.

Why do you need a survey when you buy land in Tennessee?

A survey shows what you're actually buying: the boundary lines, the acreage and where the easements run. Order one from a licensed Tennessee land surveyor early enough to read it before your due diligence period ends.

If you plan to split the land into building lots on septic, TDEC wants a survey and a soils map before it will do the subdivision evaluation. Walk the corners with the surveyor's map if you can, and compare the acreage with the listing.

How do you check title, access and easements on Tennessee land?

Your title company or closing attorney searches the county records and issues a title commitment that lists the recorded easements, liens and restrictions on the tract. Read it before your due diligence period ends, and ask about anything you don't understand.

A tract that reaches the road only over a neighbor's drive, with no recorded easement, may not have legal access at all. Tennessee law, Tenn. Code Ann. § 54-14-102, lets the owner of land cut off from a public road ask a court to condemn a private easement up to 25 feet wide across the neighbor's land, or 15 feet in a county with a metropolitan government, for access and utility lines. That takes a court case, so buy land that already has recorded access to a public road, and check how wide that access is against the zoning rules.

How do you check a Tennessee tract for flooding?

Look up the parcel on FEMA's Flood Map Service Center, the official source for flood maps. FEMA treats any area with a 1 percent or higher chance of flooding each year as high risk, which works out to at least a one in four chance of a flood over a 30-year mortgage.

Homes in high-risk flood areas with mortgages from government-backed lenders have to carry flood insurance. A tract can also be mostly dry with its one good building site in the flood zone, so check where you'd actually put the house, the septic field and the driveway.

How do septic permits and perc tests work in Tennessee?

In most Tennessee counties, the Tennessee Department of Environment and Conservation (TDEC) issues septic permits. Nine counties run their own programs: Blount, Davidson, Hamilton, Jefferson, Knox, Madison, Sevier, Shelby and Williamson. TDEC says a septic permit should always come before any dirt work or building, including the house pad.

What most people call a perc test is the soil evaluation behind that permit. If the soil or site won't take a conventional system, TDEC may approve an alternative system, such as a low pressure pipe or mound system, but it needs an extra-high intensity soils map drawn by a soils consultant licensed in Tennessee before staff will evaluate the property. That map costs money and takes time, so start it early in your due diligence.

On land that already has a house or a system, ask the seller for the permit, and search TDEC's septic records. TDEC also issues inspection letters that document an existing system's status. Make your offer on bare land contingent on a septic permit for the size of house you want.

What utilities should you check before you buy land?

Check water, power and internet at the road for the exact tract, plus the septic answer above. Don't assume any of them reach the property line, and get a price for bringing in each one that doesn't.

Ask these questions before your due diligence period ends:

1. Is there a public water line along the road frontage, who provides it, and what does a tap cost? If there isn't one, what would a well take?
2. Who provides power, and how far is the nearest line from your building site?
3. Which internet providers serve the address, and at what speeds?
4. Will you need an easement across another tract to bring any of these in?

How do zoning and minimum lot sizes work for land in Tennessee?

Each county or city sets its own zoning, so the minimum lot size depends on where the land sits. If the land is inside a city like Franklin, Spring Hill or Columbia, the city's zoning applies. Outside city limits, the county's applies. Williamson and Maury County show how much the rules can differ:

From the Williamson County Zoning Ordinance and the Maury County Zoning Ordinance (effective January 1, 2026), as of November 2026. Look up a Williamson parcel on the county's Official Zoning Map.

Splitting land has its own rules. In Williamson County, a split where every tract is 5 acres or larger and no new road or utility has to be built is exempt from the county's subdivision regulations; my guide to buying land in College Grove walks through that 5-acre rule. In Maury County, a lot under 5 acres split from a larger tract needs a recorded minor plat before the county will issue a home permit. Planning to build a barndominium or a shop with living space? My barndominium guide covers permits, accessory dwellings and the full district tables.

Do deed restrictions or HOA rules apply to land in Tennessee?

They can, and they're separate from zoning. A tract in a subdivision, or one split from a larger farm, can carry recorded restrictions on house size, exterior materials, outbuildings, animals or further splits. Zoning can allow something a recorded restriction forbids.

Ask for the recorded restrictions, the recorded plat with its notes and any HOA documents during your due diligence period, and read the title commitment when it arrives. If anything limits what you plan to build, have a Tennessee real estate attorney read it before your due diligence period ends.

What is greenbelt in Tennessee?

Greenbelt is Tennessee's Agricultural, Forest and Open Space Land Act of 1976, Tenn. Code Ann. §§ 67-5-1001 through 1050. It lets qualifying land be valued for property tax on its present use instead of its market value, which often means a lower tax bill. You apply with the assessor of property in the county where the land is.

There are three classifications, per the Tennessee Comptroller's State Board of Equalization:

First-time applications are due March 15. You only have to reapply when the ownership as of January 1 changes, so a buyer who wants to keep greenbelt files a new application in their own name. Approved applications are recorded with the register of deeds, and the applicant pays the recording fee.

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

When a sale disqualifies greenbelt land, the seller is liable for the rollback taxes unless a written contract or statute says otherwise. The Comptroller's Greenbelt Manual says a deed can shift that liability to the buyer, and a buyer who declares in writing at the sale that they'll keep the greenbelt use, then doesn't file within 90 days of the sale, owns the rollback taxes outright.

Rollback taxes recapture the taxes the greenbelt assessment saved, and the Comptroller says they aren't a penalty. They're the difference between the use value and market value assessments for the preceding three years on agricultural and forest land, and the preceding five years on open space. They're also a first lien on the land, so the tract carries them even when the seller is the one personally liable. Write who pays, and whether you'll keep the land in greenbelt, into your contract.

Property tax figures are the county and city rates published for the year shown and are for planning only. Your actual bill depends on the assessed value, any exemptions and the city or district the home sits in. Confirm with the county assessor or trustee and your tax professional before you rely on a number.

Can you build a house on greenbelt land in Tennessee?

You can, but ask the assessor first. The state's greenbelt application warns that you may owe rollback taxes if the land, or any portion of it, is converted to other uses. When only part of a tract is disqualified, the assessor splits that part off as a separately assessed parcel, so a house site carved out of a greenbelt farm can trigger rollback taxes on that piece.

Before you build, ask the county assessor how your house site will be handled, and make sure what's left still meets the 15-acre minimum for agricultural or forest land.

What contract do you use to buy land in Tennessee?

Tennessee REALTORS® publishes a Lot/Land Purchase and Sale Agreement for residential land purchases, separate from its home purchase form. It's built around a due diligence period for the feasibility work land needs: survey, soils, septic, zoning and access.

Tennessee's residential property disclosure law covers transfers of homes with one to four dwelling units (Tenn. Code Ann. § 66-5-201), so bare land isn't covered by it, and your own checks have to do that work. Here's what I'd want settled in a land contract:

1. A due diligence period long enough for the survey, the soils map and the septic answer.
2. Contingencies for the septic permit, the survey and financing, if you're borrowing.
3. Who pays rollback taxes if the land is in greenbelt.
4. Who pays for the survey and the title insurance.
5. What the deed will describe, especially if the tract is being split off a larger farm.

This is general information, not legal advice. On a split, an easement question or a greenbelt farm, have a Tennessee real estate attorney review the contract before you sign.

What happens at a land closing in Tennessee?

A land closing in Tennessee runs through a title company or a closing attorney. They clear the title, collect the money, have the deed signed and record it with the county register of deeds. If you're keeping the land in greenbelt, your new application gets recorded too.

Two state taxes are due when the deed and any loan are recorded, as of November 2026. The realty transfer tax is $0.37 per $100 of the price, and Tenn. Code Ann. § 67-4-409 puts it on the buyer, though the contract can shift it. The mortgage tax is $0.115 per $100 of the loan, with the first $2,000 exempt, so a cash buyer doesn't pay it. My Tennessee closing costs guide breaks down the rest of the bill line by line.

Property tax figures are the county and city rates published for the year shown and are for planning only. Your actual bill depends on the assessed value, any exemptions and the city or district the home sits in. Confirm with the county assessor or trustee and your tax professional before you rely on a number.

How do you buy land in Tennessee from out of state?

You can buy land in Tennessee without living here, but someone has to walk it. When you can't get here, I'll record a video walkthrough of the tract, the road frontage and the building site, and send you an unlisted YouTube link. You can rewatch it as often as you want and show it to anyone else in the decision. Here's how I work with out-of-state buyers.

I live in Canterbury in Thompson's Station, so Williamson and Maury County land is close to home for me. To start looking, see my land pages for Franklin, Spring Hill, College Grove, Columbia and Maury County. Want a barndominium that's already built? See barndominiums for sale in Middle Tennessee. Still deciding where to land? Start with moving to Tennessee.

Frequently asked questions

Can you get a loan to buy land in Tennessee?

Yes. Bare land is bought with cash or a land loan, because a standard home mortgage won't usually cover it. Fannie Mae's Selling Guide says it doesn't buy or securitize mortgages on vacant land or land development properties, farms or ranches, or properties that aren't reachable by roads that meet local standards, so a bare tract goes to a lender that makes land loans.

Who issues septic permits in Tennessee?

In most Tennessee counties, the Tennessee Department of Environment and Conservation (TDEC) issues septic permits. Nine counties run their own programs: Blount, Davidson, Hamilton, Jefferson, Knox, Madison, Sevier, Shelby and Williamson. TDEC says a septic permit should always come before any dirt work or building, including the house pad.

What is greenbelt status in Tennessee?

Greenbelt is Tennessee's Agricultural, Forest and Open Space Land Act of 1976, Tenn. Code Ann. §§ 67-5-1001 through 1050. It lets qualifying land be valued for property tax on its present use instead of its market value, which often means a lower tax bill. You apply with the assessor of property in the county where the land is.

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

When a sale disqualifies greenbelt land, the seller is liable for the rollback taxes unless a written contract or statute says otherwise. The Comptroller's Greenbelt Manual says a deed can shift that liability to the buyer, and a buyer who declares in writing at the sale that they'll keep the greenbelt use, then doesn't file within 90 days of the sale, owns the rollback taxes outright.

Can you build a house on greenbelt land in Tennessee?

You can, but ask the assessor first. The state's greenbelt application warns that you may owe rollback taxes if the land, or any portion of it, is converted to other uses. When only part of a tract is disqualified, the assessor splits that part off as a separately assessed parcel, so a house site carved out of a greenbelt farm can trigger rollback taxes on that piece.

What contract do you use to buy land in Tennessee?

Tennessee REALTORS® publishes a Lot/Land Purchase and Sale Agreement for residential land purchases, separate from its home purchase form. It's built around a due diligence period for the feasibility work land needs: survey, soils, septic, zoning and access.

Where can you see land for sale in Middle Tennessee?

I keep a live search of every land listing in the MLS across Middle Tennessee: see land for sale in Middle Tennessee. For one town, start with my land pages for Franklin, Spring Hill, College Grove and Maury County.

Want a second set of eyes on a tract?

Send me the listing or the parcel number, and I'll check the county, the zoning, the road access, the flood map and the septic path with you before your due diligence period runs out. DM me, text or call 615-392-1186.