The Tennessee purchase and sale agreement is a document that provides the terms and conditions under which the seller agrees to sell and the buyer agrees to buy a certain item.
You should use the Tennessee purchase agreement for any sale or purchase where the purchase price is over $500. However, if there are many terms and conditions affecting the transaction, you should make the purchase agreement regardless of the purchase price.
Tennessee Purchase and Sale Agreement Form
The parties that want to sell or purchase a certain item will draft the purchase agreement to provide all the details that affect the property transaction.
These details often include the full name and mailing address of the seller and the buyer, a description of the transferred item, the purchase price, details about the financing, contingencies, and other terms and conditions connected to the sale and purchase of an item.
The Tennessee purchase agreement is also known as:
Other Names for Tennessee Purchase and Sale Agreement Form
Tennessee purchase and sale agreement
Tennessee sale and purchase agreement
Tennessee sale and purchase contract
Tennessee purchase and sales contract
However, it all refers to one document that provides the terms and conditions for the property transfer in Tennessee.
Purchase Agreement Tennessee Laws & Requirements
Tennessee is one of the “caveat emptor” or “buyer beware” states. This means that the seller must disclose the property’s condition before the purchase agreement is signed and is later no longer liable for the property’s defects that they were not aware of before the sale.
Below, you can see what disclosures the seller must make before the sale of the real estate in Tennessee.
Purchase Agreement Required Disclosures in Tennessee
Here, you can see the list of disclosures you must include in your Tennessee real estate purchase agreement template:
Lead-Based Paint Disclosure: It is required by 42 U.S. Code § 4852d that the seller provide information to the buyer about the lead-based paint hazard at the property. This is mandatory for all properties with a known lead-based paint hazard or for properties built before 1978.
Residential Property Condition Disclosure: The seller must provide this disclosure form to the buyer before the property sale, providing all the information about the property’s condition. (§ 66-5-202(1))
Common Types of Purchase Agreements in Tennessee
This section provides all the types of purchase agreement forms used in Tennessee:
Variety of Purchase Agreement
Residential real estate purchase agreement. Parties use it to determine the conditions for selling and purchasing a house, apartment, or other kinds of property used for residential purposes.
Commercial real estate purchase agreement. Used for transferring ownership over office space, warehouses, manufacturing facilities, and other kinds of commercial properties.
Vehicle purchase agreement. Also known as the motor vehicle bill of sale. You can use it for the purchase and sale of cars, motorcycles, trucks, and other kinds of motor vehicles.
Business purchase agreement. Used for providing terms and conditions for transferring the company's shares.
Land purchase agreement. You can use it to provide terms and conditions for the transfer of agricultural, residential, commercial, or other kinds of land in Tennessee.
Purchase Agreement in Tennessee FAQ
Yes, a purchase agreement is a legally binding document in Tennessee. It, however, becomes legally binding only after both the seller and the buyer sign it.
Yes, a Tennessee sales agreement needs to state the purchase price. Otherwise, the document won’t produce any legal effects since the purchase price is the main obligation of the buyer.
No, purchase and sales agreements in Tennessee don’t need to be notarized. This is due to the fact that the document doesn’t directly transfer any legal rights between the seller and the buyer.
A seller can back out of a purchase agreement in Tennessee without the obligation to compensate the buyer if the buyer fails to meet the contingencies set out in the document.