Tennessee Real Estate Purchase Agreement

Last Updated: December 22, 2023 by Phil Ahn

Tennessee Real Estate Purchase Agreement Template_1 on iPropertyManagement.com

The Tennessee residential real estate purchase agreement (“residential real estate purchase contract”) is a contract used when a potential buyer places on an offer to purchase real estate from a home seller. The agreement initiates the negotiation process by indicating the buyer’s offer to acquire the property.

Included in the offer will be the purchase price and additional conditions established by the buyer. The seller will have an assigned period in which they can respond to the offer before it expires. During this time, the seller may alter the terms by submitting to the buyer a counteroffer. Should both parties agree on the purchase conditions, they can sign the document to create a legally binding commitment to transfer ownership of the property.

Do Sellers in Tennessee Have to Disclose Property Defects?

Tennessee does not require real estate sellers to disclose any material defects. Certain states do not require the seller to disclose all defects (caveat emptor), meaning the buyer assumes the responsibility to conduct a real property inspection to seek out any potential defects with the property. In those states, if a buyer fails to conduct a proper examination, they may not have a legal alternative to reverse the real estate transaction.   

While landlords in Tennessee are not required to disclose material defects, if the seller actively concealed latent defects or otherwise made material misrepresentations amounting to fraud, then they may be liable for damages or reversal of the real estate transaction.

Required Seller Disclosures in Tennessee

Although with any material defects with the property, sellers in Tennessee will also need to provide the following:

  • Tennessee Residential Property Condition Disclosure Form. The state of Tennessee instructs sellers to complete a disclosure form to notify the buyer of any defects presented in the property involved in the sale. Any issue that the seller is aware of at the time of negotiation or signing must be released to the buyer. The contracting of a professional inspection remains the buyer’s responsibility for any undiscovered structural, title, or environmental issues associated with the property.
  • Lead-Based Paint Disclosure. Any home that was constructed earlier than 1978 must come with a disclosure upon the transfer of the property that includes any data concerning the presence of lead on the premises as well as educational materials that communicate the risks involved with coming into contact with the harmful substance.