Tennessee (TN) Real Estate Purchase Agreement

Legal Aspects 

Writing Requirement

• All Tennessee purchase contracts have four (4) essential elements they must fulfill.
  • Mutual Assent: Seller and buyer must mutually consent to the agreement.
  • Offer and Acceptance: Buyers usually make a written offer, while sellers accept it.
  • Careful Consideration: Parties must exchange items of value, i.e., the property and money.
  • Legality: It must be a lawful contract with no law violations.

• Your Tennessee real estate purchase agreement must outline:
  • Information of Buyer and Seller: These details include their full names and contact details.
  • Property Description: The legal and registered description of the real estate property.
  • Property Purchase Price: This amount is the previously agreed-upon price for the real estate property.
  • Contingencies: Any contingencies the seller or buyer must complete, like financing.
  • Closing Date: The date when the property transfer is completed after signing the agreement, typically 35 days.
  • Signatures: Both parties must sign the agreement for it to become legally binding.

• We also looked into other terms that we recommend you add, even though it’s not required:
  • Earnest Money Deposit: A good faith deposit from the buyer to secure the property. Generally, it’s about 1% to 2% in Tennessee.
  • Financing: Add any details regarding the seller or buyer’s financing.

Required Disclosures

While there are only three (3) required disclosures, you must add to your Tennessee (TN) real estate purchase agreement. Buyer beware rules mean that the seller can sell the property “as is,” which makes the buyer responsible for any defects or damages they find on it. The below disclosure explains this clause better:

• Buyer Beware/Caveat Emptor: This waiver explains that the buyer purchases the property as is, and sellers aren’t responsible for repairing any defects or damages. The only exception to this waiver is if the seller knows about a defect or issue that could negatively impact people’s safety or health.
• Residential Property Condition Disclosure Form: Sellers must inform the buyer about any defects if they’re not selling the property as is. Even if they sell it as is and aren’t responsible for the repairs, they must still inform the buyer about the issues. However, the seller must first hire professional services to determine whether there are title, environmental, or structural problems.
• Lead-Based Paint: Buildings built in 1978 or before might have used lead-based paint. Sellers must notify the buyer of the presence of this paint, along with the hazards of it.