Purchasing real estate in Tennessee, whether it is your first home, an investment property or commercial property, is essentially a legal transaction. One part of the transaction is the execution of a purchase contract. The following are some provisions that can be included in a well-rounded purchase contract.
First, if the buyer is taking out a loan to purchase the property, their purchase contract should contain language stating that the buyer's offer is contingent on obtaining a loan at a specific interest rate. The party that will pay closing costs should also be identified in the purchase contract, and the dollar amount of the applicable closing costs should be included as well. This includes fees related to escrow, title fees, notary fees and other expenses.
A purchase contract should also contain a property inspection contingency clause. For example, the contract can state that the buyer does not have to purchase the property if a property inspection uncovers significant or expensive flaws in the property. Any fixtures that are to be included with the purchase of the property should be identified in the purchase contract. Finally, a purchase contract should contain the closing date and whether closing is contingent on the sale of existing property.
These are only some examples of items to include in a purchase contract for residential or commercial real estate. In the end, it can be to one's legal and financial advantage to ensure that their purchase contract is as air-tight as possible. Boilerplate contracts may not contain all the legal clauses necessary to protect the buyer's interests. However, buyers interested in executing a purchase contract can seek professional legal guidance before proceeding, so they can understand what their rights and responsibilities are.