Tennessee Real Estate Purchase Agreement Template

Tennessee is a “buyer beware” state, which means that the seller is generally protected from disclosing or executing the following:

• Duty to Investigate: Sellers are not required to conduct a home inspection or other investigation in order to complete the state-mandated Property Condition Disclosure (RF201) or Disclaimer (RF204) Form. Disclosures are based only on what the seller answers in good faith to the best of their actual knowledge at the time (§ 66-5-201).
• Non-Material Facts: Sellers are not required to volunteer that a property was the site of a homicide, suicide, or felony (§ 66-5-207).
• Patent Defects: A seller has no duty to point out property defects that are clearly visible or could be discovered by the buyer during a reasonable inspection. The Property Disclosure or Disclaimer Form is not a warranty or substitute for professional inspections the buyer may wish to obtain (Simmons v. Evans (1947)).
• Public Record Information: Sellers do not need to disclose information that is readily available in public records, such as local crime statistics or the proximity of registered sex offenders (§ 44-1-16(b)).
• Right to Silence: A seller may remain legally silent on property conditions by providing an “as is” or “no representations or warranties” disclaimer (Form RF204), provided the buyer explicitly waives their right to the required disclosure form (§ 66-5-202).

Exceptions:

• Fraudulent Concealment: A seller loses “buyer beware” protections if they take active steps to hide a defect or fail to answer the disclosure form in good faith to intentionally deceive the buyer (Patel v. Bayliff (2003))
• Latent Material Defects: Sellers must disclose all known material defects that may not be discoverable during a reasonable inspection, and inform the buyer of any inaccuracies or material changes in the property’s reported condition that occur before closing (§ 66-5-202).
• New Construction: Buyers of brand-new homes are protected against substandard building practices because builders are legally bound by an implied warranty of habitability and good workmanship. This implied warranty overrides the traditional buyer-beware doctrine (Dixon v. Mountain City Const. Co. (1982)).
• Real Estate Agents: Licensed real estate professionals cannot hide behind the seller’s “buyer beware” protections or omissions. Agents are legally bound to disclose all known “adverse facts,” such as significant hidden defects or health hazards, to both the buyer and the seller (T.C.A. § 62-13-403).