REAL ESTATE CONTRACT

(Total number of executed copies made __________)

__________________, Tennessee
____________________, 19/20__

RECEIVED OF _______________________________________________________

the sum of __________________________________________________________________Dollars as earnest money and in part payment for the purchase of the following described real estate (called "Property") situated in the County of _______________________, and State of Tennessee:

 

 

 

 

 

Seller covenants and agrees to sell and convey Property, with all improvements thereon, or cause to be conveyed, by good and sufficient warranty deed, to Purchaser, or to such person or persons as Purchaser may designate; Purchaser, however, shall not be releases from any of the Purchaser’s agreements and undertakings as set forth herein, unless otherwise stated; and Purchaser covenants and agrees to purchase and accept Property for the total price of:

($__________________ ) ________________________________________________________ Dollars upon the terms as follows:

 

 

 

 

 

Seller agrees to have the above described property inspected by a licensed and bonded termite control operator, have treated if infestation is found, remedy and repair any insecurities in the visible foundation timbers caused by termites or other wood destroying insects.

Closing to be on or before ________________________________________________________.

Title search, abstract and/or title insurance to be prepared by ___________________.

Rents, if any, and all taxes for the current year and interest (FHA Mortgage Premium, if any) upon any debt secured by Property and assumed by Purchaser are to be prorated as of the date of closing, and all prior unpaid taxes or liens including front foot assessments are to be paid by the Seller, unless otherwise specified. Fire and any additional hazard insurance premiums on the improvements on Property are to be __________________________ (cancelled) or (prorated) as of date of closing. If prorated, Purchaser is to pay the Seller the unearned premiums for such insurance. (It is recommended that Seller notify his insurance company of the existence of this contract of sale.)

IF THIS CONTRACT REQUIRES FHA OR VA FINANCING, THE SELLERS AGREE TO PAY THE DISCOUNT OF THE NEW LOAN, NOT TO EXCEED ____________________________________________________%
   Title is to be conveyed subject to all restrictions, easements and covenants of record, and subject to zoning ordinances or laws of any governmental authority. Possession of premises is to be given _____________________________________________.
   The improvements on Property are to be delivered in as good condition as they were as of the date of this contract, ordinary wear and tear excepted, and if not in such condition when final settlement is made, Seller is obligated to put them in such condition, or to compensate Purchaser for his failure to do so, but in the event of destruction by fire, or otherwise, Seller’s liability shall in no event be more than the appraised value of the improvements so destroyed.
   Deferred payments, if any, are to be evidenced by promissory note(s) of Purchaser on or before maturity, bearing interest at _______percent per annum, and secured by a deed of trust on Property in the form generally used by banks and title insurance companies in ___________, Tennessee. Settlement and payment of balance, if any, of cash payments shall be made upon presentation of a good and valid warranty deed with the usual covenants and conveying a good and merchantable title, after allowing fifteen days from the completion of title search or the delivery of abstracts for examination of title. At the election of Purchaser, Seller agrees to furnish promptly, for examination only, either title search or adequate abstracts of title, taxes and judgments, covering Property, or at Seller’s option, a policy of title insurance by one of the title insurance companies with offices in __________________ for the amount of the above purchase price, insuring marketability of title paid for by Seller. Adequate abstracts of title, taxes and judgments are those required by a title insurance company with an office in ____________________ as the basis for the issuance of a policy of title insurance. In the event of controversy regarding title, a title insurance policy covering Property, issued by a local title insurance company for the above purchase price, shall constitute and be accepted by Purchaser as conclusive evidence of good and merchantable title.
   If the title is not good and cannot be made good within a reasonable time after written notice has been given that the title is defective, specifically pointing out the defects, then the above earnest money shall be returned to Purchaser and the usual commission shall be paid to the undersigned Agent by Seller. If the title is good and Purchaser shall fail to pay for property as specified herein, Seller shall have the right to elect to declare this contract cancelled, and upon such election, the earnest money shall be retained by and divided equally between Seller and Agent, as liquidated damages and commission respectively, but in no event shall Agent’s share exceed the regular commission. The right given Seller to make the above election shall not be the Seller’s exclusive remedy, and either party shall have the right to elect to affirm this contract and enforce its specific performance or recover full damages for its breach. Seller’s retention of such earnest money shall not be evidence of an election to declare this contract cancelled, as Seller shall have the right to retain his portion of earnest money to be credited against damages actually sustained. Seller agrees to pay the undersigned Agent a commission of _________ % of the sale price. Unless otherwise specified herein, such commission is to be paid in cash out of the net proceeds of the sale at time of closing this transaction. Failure to close shall not relieve Seller of his obligation to pay a commission as provided herein. If property is being exchanged, each party hereto agrees to furnish either title search or adequate abstracts of title and pay the Agent the commission on the real estate each contracts herein to convey, and otherwise fulfill obligations incumbent upon seller as outlined above. Any abstracts covering Property only will become the property of Purchaser subject to rights of mortgage holder.
   Seller is to pay for preparation of the deed, recording of purchase money trust deed, if any, title search or abstract, state tax and Register’s fee on trust deed, and notary fee on deed. Seller authorizes Agent to order title search or abstract for which Seller agrees to pay. Purchaser is to pay for preparation of note, or notes, and trust deed, notary fee on trust deed, recording of deed, state tax and Register’s fee on deed, and expense of title examination or title insurance, if any, Seller and Purchaser are to share equally in paying closing fee and loan transfer fee, if any, in connection with transaction. If Purchaser obtains a loan on Property, he is to pay all expenses incident thereto.
   Should there be any tax, insurance or other accrual items on deposit with the holder of any debt secured by Property and assumed by Purchaser, at the time of closing Purchaser shall reimburse Seller therefor.
   This instrument when signed only by the prospective Purchaser shall constitute an offer which shall not be withdrawable in less than 48 hours from the date hereof.
   Purchaser accepts Property in its existing condition, no warranties or representations having been made by Seller or Agent which are not expressly stated herein.
   As used herein, where applicable: "Seller" and "Purchaser" include the plural; the masculine includes the feminine or neuter gender.
   Witness the signatures of all parties the day and year above written.

Subject to clearance of any check given, the undersigned agent acknowledges receipt of the above mentioned earnest money which is held in trust by __________________________, subject to the terms of this contract.

____________________________________

____________________________________
Purchaser

 
______________________________
By

______________________________
Cooperating Broker

______________________________
Cooperating Agent

____________________________________
 

____________________________________
Seller

 

___________________________________________________________________ Purchaser’s address                                       Telephone

___________________________________________________________________ Seller’s address                                          Telephone