Tennessee Realtor State Practice Exam

Which legal document is typically waived in a property transfer between spouses in Tennessee?

1. Alienation clause

2. Sale contract

3. Title deed

4. Mortgage agreement

The correct answer is: Alienation clause

In property transfers between spouses in Tennessee, the alienation clause is typically waived. An alienation clause is a provision in a mortgage or deed that allows the lender to demand payment in full if the property is sold or transferred to another party without the lender's consent. However, in the case of property transfers between spouses—such as in marriages or during divorce proceedings—these transfers are often exempt from the requirements of an alienation clause. This is because the law recognizes the marital relationship and aims to facilitate the equitable division of property between spouses without the additional complications that could arise from lender consent. In contrast, a sale contract is a critical document that outlines the terms of the sale and is not typically waived in any property transfer. The title deed is also essential, as it serves as the official document that proves ownership of the property, and it cannot be waived in a property transfer. Lastly, while a mortgage agreement involves the financial obligations tied to a property, it is not specifically waived in transfers between spouses. Thus, waiving the alienation clause reflects the unique legal considerations involved in spousal property transfers.