66-30-105 - Redemption. - Tennessee Statutes

66-30-105. Redemption.

The obligor shall have the right to redeem a residential ground rent at any time after three (3) years from the date of the ground rent agreement. The redemption shall be effected for such amount as the obligor and the obligee may have agreed upon; or, in the absence of such an agreement, shall be determined by capitalizing the ground rent in effect at the time of redemption at ten percent (10%). Upon tender of such amount by the obligor, together with any lawfully collectible arrearages of rent and interest thereon, the obligor may redeem the land from, and shall be entitled to a release from, all obligation to pay ground rent and to a warranty deed. Such release and such deed shall be in recordable form and the cost of recording the same, together with any other charges incidental to it, other than the state transfer tax, shall be paid by the obligor. The obligor's right to redeem may be assigned absolutely or as collateral security to the holder of any deed of trust or mortgage on the interest of the obligor in the real estate, and such deed of trust or mortgage may require that the obligor exercise the obligor's right to redeem upon the written demand of the trustee or beneficiary thereunder, and that a failure to exercise such right of redemption, under such circumstances, shall constitute a material default under such deed of trust or mortgage.

[Acts 1980, ch. 735, § 1; T.C.A., § 64-3005.]