66-8-114 - Enforcement of right to redemption. - Tennessee Statutes

66-8-114. Enforcement of right to redemption.

(a)  If the purchaser, or the purchaser's vendee, fails or refuses to reconvey to such party entitled and offering to redeem, as set forth in this chapter, such party so paying or tendering payment shall have the right to file in the chancery court a bill to enforce the purchaser's rights of redemption.

(b)  (1)  In any suit to enforce a right of redemption brought by a transferee from the debtor:

          (A)  The debtor shall be made a party;

          (B)  The suit shall be dismissed on the motion of any party if it appears that the transferee is engaged in speculation or profiteering in such rights of redemption;

          (C)  Such speculation and profiteering shall be presumed if it appears that the transfer of the right of redemption was made for a consideration less than the fair market value of the real property minus the amount the debtor would have been required to pay to redeem the property under this chapter; and

          (D)  The party seeking to redeem the real property shall complete the tender required by this chapter by paying the amount required for redemption to the clerk of the court.

     (2)  It is the intent of this subsection (b) to further the public policy of the state to protect the interests of owners of real property subject to debt and to prohibit the profiteering and speculation in rights of redemption.

     (3)  The purpose of this subsection (b) is remedial and it shall be construed to apply to any existing rights of redemption. This subsection (b), however, shall not apply to any rights of redemption arising out of judicial foreclosures or tax sales.

[Code 1932, § 7750; T.C.A. (orig. ed.), § 64-815; Acts 1987, ch. 385, §§ 1-3.]