It is our understanding that we are not allowed to charge a release fee upfront on any type of contract because of Tennessee State Law. It that correct? And if so, where in state law can I find it??

Thanks,
Tammy

That's news to me. Every bank I've worked at in TN has charged release fees upfront.

I agree. You are required to release a DoT when payment in full is presented. I am not aware of any bank in TN requiring the payment of a release fee, before releasing the DoT.

hgliii--I think the OP is talking about collecting the fee to process the release at closing.

I realize that and agree with your post. I was wondering when they would try to collect the fee if not at closing.

ok, i'm resurrecting this thread...
Are you guys saying that we are allowed to charge the borrower either upfront or at the time of payoff for the cost to release the DOT?

The reason i am questioning it, is because an attorney has informed us that according to 66-25-115 it is prohibited.

I know this is old, but found this while researching this topic. Thought I'd post it here in case it comes up again (as it seems to every few years).

http://www.sitemason.com/files/l5bX7a/ReleaseFeeOpinion20101228111833.pdf