Tennessee Real Estate Purchase Agreement & Sale Agreement Explained (+Free Template)

A Tennessee real estate purchase agreement allows a seller to transfer ownership of a property to another person in exchange for a monetary offer. Therefore, both parties can benefit from this document. Do you want to know more about it? Read on!

Tennessee Real Estate Purchase Agreement

Also known as a purchase and sale agreement, it's a contract that allows a potential buyer to make an offer to a seller to purchase a property. Essentially, this process starts with the negotiation, so this document should include the following key details:

The sale and purchase agreement also includes the time the seller has to respond to the written offer before it expires. During this period, they can submit a counter-offer to alter the terms.

To make it legally binding and transfer ownership of the residential property to the buyer, the real estate contract must be signed after both parties agree on the purchase conditions.

According to Tennessee law and the buyer beware rule, buyers who accept the property in "as-in" condition are responsible for any defects that the unit or building has or repairs it requires.

Required Disclosures

Tennessee also requires the seller to disclose certain information about the property's condition or defects. Otherwise, they may face severe consequences. The following are the disclosures that this real estate purchase agreement must include:

Lead-Based Paint

Under US Environmental Protection Agency regulations, those planning to sell a dwelling built before 1979 must provide information about possible exposure to lead-based paint to all potential buyers. This notification is mandatory.

Tennessee Residential Property Condition Disclosure Form

Moreover, Tennessee laws state that sellers must complete a disclosure form to notify the buyer of any property defects that may affect their decision to purchase the unit.

Sellers must inform potential buyers about all these issues during negotiations or before both parties sign the contract. In addition, the buyer is responsible for hiring professional services to inspect the property to determine if there are title, structural, or environmental problems.

Buyer Beware or Caveat Emptor

Tennessee doesn't require sellers to make guarantees on the unit's state of repair, and they aren't liable for any property defects if buyers accept the unit in "as-is" condition. The only exception is when they know some issues may affect people's safety or health. Therefore, the purchase and sale agreement must include this waiver.

Final Thoughts

Do you need to make a Tennessee real estate agreement to start the negotiation process to sell/purchase a property? Doorloop can give you a hand! You can download multiple free forms on our website, including lease termination letters, purchase agreements, security deposit letters, eviction notices, and more! In addition, you can find useful information on different topics, such as the following: