2015-2016 Residential TREC Core Course - Knoxville … Deposits and new Mandatory Real Estate Firm Audit Copyright 2015 Tennessee Real Estate Education Foundation 5 Section I: TREC

Copyright 2015 Tennessee Real Estate Education Foundation 1

2015-2016Residential TREC Core

CourseHandout

Developed by theTennessee Real Estate Educational Foundation in cooperation

with theTennessee Association of Realtors®

Participant Guide


Residential Core Course for 2015-2016 I. TREC Law, Rule, Policy Update a. Laws and Rules Violations b. E & O Suspension and Penalty Fees c. A.G. Opinion – Exemptions to licensure d. Fingerprinting II. Principle Broker Supervision (T.C.A. §§ 62-13-312; 62-13-310; Rule 1260-1-.04 -.06) a. Unlicensed Branch Office b. Advertising c. Earnest Money/Security/Trust Deposit d. New Mandatory Real Estate Firm Audit III. Agency T.C.A. § 62-13-401-406; Rule 1260-02-.08; .11; 36 IV. Contracts V. Disclosures T.C.A. § 66-5-201-202; 212; 213 VI. Advertising a. Licensees who hold themselves out as a group or similar entity within a firm b. Internet c. False, misleading or deceptive d. Signs on Property e. Guarantees, Claims and Offers; Gifts and Prizes


VI. Property Management a. Escrow Account Setup b. TREC Requirements VIII. Commercial and Leasing Terminology a. Amendment T.C.A. § 62-13-501-502 b. Net c. Triple Net d. Gross; Modified Gross e. CAM


Course Introduction and Learning Objectives Course Overview This course will provide students with a review of several significant issues facing Tennessee brokers and licensees. Students will be provided with practice in solving the kinds of problems that plague daily practice in residential real estate. The course also addresses important legal issues, including agency law and the rules and regulations of the Tennessee Real Estate Commission.

Learning Objectives Upon completion of this course, students will be able to:

1. Recognize common violations of TN License Law and/or TREC Rules,

and what to do about them. 2. Identify new changes to the TN License Law and or TREC Rules. 3. Recognize what E&O insurance does and doesn’t cover. 4. Identify violations of Tennessee’s agency law, including teams,

disclosures and what should be done to avoid them. 5. Identify common violations of advertising rules, including advertising of

teams, and how to avoid them. 6. Recognize common problems and issues with residential contracts and

how to avoid or resolve them successfully. 7. Correctly identify issues that arise in the practice of residential property

management including escrow account rules and other TREC requirements, and how to avoid the most common problems.

8. Understand the TREC Laws concerning property disclosures or disclaimers and the time frame of providing the statements to the purchasers and owners.

9. Recognize the TN License Laws and/or Rules concerning PB Supervision including Branch Offices, exemptions to licensure, advertising, Earnest Money/Security/Trust Deposits and new Mandatory Real Estate Firm Audit


Section I: TREC Law, Rule Policy Update

Why is it important to understand TREC Rules? All licensees in the state of Tennessee must adhere to TREC Rules. Failure to do so can result in fines, penalties and even loss of license.

Are TREC Rules the same as Tennessee law? TREC Rules are promulgated to provide more detailed guidelines for the day-to-day activities of licensees. They’re authorized by and consistent with the requirements of Tennessee law. The Tennessee Real Estate Commission enforces both the license law and rules. Remember that, as a licensee, you are responsible for adhering to both the law and TREC Rules.

What should I do if I don’t understand a certain requirement of TREC Rules? You can always contact TREC for clarification. Their website provides a link to frequently asked questions: http://www.tn.gov/regboards/trec/documents/FAQ.pdf or you can reach them by phone (toll free) at 1-800-342-4031.

In addition, as a member of the Tennessee Association of Realtors®, you may always email TAR’s Legal Hotline attorneys for clarification on any legal or ethical issues at [email protected]. Always put Hot Line Question in the subject line of the email and include (in the email) your full name, firm name, your firm telephone number, your cell phone number, broker’s name, broker’s email address, firm fax number, and local association.


TREC DISCIPLINARY ACTIONS AT A GLANCE

(DURING THE PERIOD OF JANUARY – JUNE 2014)

TOTAL NUMBER OF INDIVIDUALS DISCIPLINED !77 TOTAL NUMBER OF INDIVIDUALS WITH MULTIPLE VIOLATIONS ! 9 TOTAL NUMBER OF VIOLATIONS !101 FINES RANGING FROM $250 TO $3,000 TOTALED = $50,850

Penalties: (1) License permanently surrendered (1) License revoked (1) Order of Suspension (2) Orders of Cease and Desist (12) Hours of Continuing Education (21) Orders to attend a regularly scheduled TREC Commission Meeting


MOST VIOLATED LAW OR RULES: In Order of Number of Complaints

o Failure to timely complete required education

o Failure to maintain Errors and Omissions insurance

o Advertising violation (Agent’s name larger than the firm name)

o Failure to adequately supervise activities of affiliates

o Failure to report to a complaint filed with the Commission

o Failing, within a reasonable time, to account for or to remit moneys belonging to others

o Making substantial and willful misrepresentation

o Failing to adequately supervise advertising activities of affiliates

o Engaging in unlicensed activity

o Failure to timely complete administrative measures

o An affiliate’s acceptance of a commission from someone other than the broker

with whom they are affiliated

o Failure to be loyal to the interests of the client

o Failure to timely disburse or interplead earnest money

o Violation of the gifts and prizes rule

o Failure to complete and obtain a signed written disclosure of agency status form

o When a licensee terminates his/her affiliation with a firm, he/she shall neither

take nor use any property listings secured through the firm

o Failure to disclose adverse facts of which the licensee has actual notice or knowledge

o Failure to make a personal interest disclosure

o Failing to furnish a copy of a listing, sale, lease or other contract relevant to a

real estate transaction to all signatories of the contract at the time of execution

o Conducting business with an expired real estate firm license


Failure to Timely Complete Education T.C.A. § 62-13-303 Qualifications – Prerequisites for Licensing- Education (g) Every two (2) years, as a requisite for the reissuance of an affiliate broker’s license originally issued on or after July 1, 1980, the affiliate broker shall furnish certification of satisfactory completion of sixteen (16) classroom hours in real estate courses at a school, college or university approved by the commission. (h) Within a period of three (3) years from the date of issuance of an original broker's license, the licensee shall, as a requisite for the reissuance of the license, furnish certification of satisfactory completion of an additional one hundred twenty (120) classroom hours in real estate at any school, college or university approved by the commission. Beginning with the license period immediately following the license period in which the licensee completes the one hundred twenty (120) hours of education specified in this subsection (h), the licensee of a broker's license originally issued after January 1, 2005, every two (2) years shall furnish certification of satisfactory completion of sixteen (16) classroom hours in real estate courses at any school, college or university approved by the commission as a requisite for the reissuance of the license. (i) The commission shall, at least six (6) months prior to the deadline for furnishing the certification required by subsections (g) and (h), notify each licensee from whom the certification has not been received.

Need to Verify Your Education?

Enter your license number + Click Real Estate Broker/Affil/TS + Search + Detail Box


Failure to Maintain Errors and Omission (E&O) Insurance Effective July 1, 2013, T.C.A. § 62-13-112 was amended to change the fees and penalties for failing to obtain, maintain or renew the licensee’s error and omissions insurance which meets or exceeds the minimum requirements. The renewal date on TREC’s Group Insurance Policy through Rice Insurance Services Company is January 1, 2015. When does the renewal need to be paid to Rice so as not to be considered late? 1. January 1, 2015 or December 1, 2014? However the licensee may enroll through December 31, 2014 with no administrative penalty. If no renewal has been received by January 1, 2015, the penalties include suspension and: 1. After thirty-one (31) days but less than one hundred twenty (120) days - not more than $500.00 2. After 120 days but less than 1 year, $500.00 plus additional penalty fee of $100.00 per month for months 6-12 3. A license suspended for more than 1 year shall be automatically revoked. Effective May, 2014, TREC Rule 1260-01-06 was amended to change the fees and penalties for Lapsed Errors and Omissions Insurance. This amendment places a specific amount of penalties to the above range of penalties under T.C.A. § 62-13-112 according to the dates of suspension. 1. After 31 days but less than 120 days: a. $200 if the licensee’s insurance carrier backdated the Licensee’s E & O Insurance to indicate continuous coverage b. $400 if the licensee’s insurance carrier did not back –date the Licensee’s E & O Coverage to indicate continuous coverage 2. More than 120 days but less than 6 months, $500 penalty fee 3. More than 6 months up to 1 year, a $500 penalty fee plus a fee of $100 per month, or portion thereof, for 6 -12 months.


Principal Brokers of Licensees Who Fail to Maintain E & O Insurance: A Principal Broker failing to insure that all licensees affiliated with the Broker shall constitute failing to adequately supervise the activities of a licensed affiliate broker. A Principal Broker whose licensee is suspended due to failure of maintaining E & O Insurance - there shall be no penalty if either of the following 2 circumstances occur with 30 days of suspension: 1. The affiliate licensee has provided proof of insurance 2. The principal broker releases that affiliated licensee whose license is suspended f or failure to maintain E & O insurance. 3. If neither of the above circumstances have been provided, the Commission authorizes a formal hearing on the matter of the principal’s broker’s failure to exercise adequate supervision. 4. If the affiliate provides proof of insurance or the principal broker releases the affiliate licensee more than 30 days but within 120 days after suspension the following are the civil penalties for the broker: a. $200 if the licensee’s carrier backdated the E & O policy to indicate continuous coverage b. $400 if the licensee’s carrier did not backdate the E & O policy to indicate continuous coverage 5. If the affiliate provides proof of insurance coverage or the principal broker releases the affiliated licensee more than 120 days after suspension the penalty for the Broker shall be $500.

And Not Everything Is Covered By E&O…


Errors and Omissions Coverage Implications When Listing or Selling Your Own Property- Prepared by Rice Insurance Services Company, LLC June 19, 2013 The TREC’s group policy now automatically included an endorsement that makes the policy to apply to the sale or listing of the licensee’s primary residence with certain conditions. Additionally, licensees who purchase insurance through the TREC’s group policy can also purchase an optional endorsement that make the policy apply to the sale or listing of residential property owned by the licensee: the licensee’s spouse; or a entity, corporation, partnership or trust owned or controlled by the licensee or his/her spouse with certain conditions. The full statement from Rice Insurance Services Company, LLC, can be found in the Appendices in the back of the booklet on pages 5-6.

An Affiliate’s Acceptance of a Commission from Someone Other than the Broker with Who They Are Affiliated Example 1: An affiliate licensee advertises “$1,000 Bonus to the Selling Agent”. Is this language in an advertisement legal or illegal? You as a licensee sell the advertised property, who will receive the $1,000 and how will you get paid? Example 2: You are part of a team where all team members are under the Team Leader. The Team Leader assigns you a buyer and you make the sale. When the sale closes and the commission check comes into the Broker, how will the agent’s portion of the sale be distributed?


Failing to Furnish a Copy of a Listing, Sale, Lease or other Contract Relevant to a Real Estate Transaction to all Signatories of the Contract at the Time of Execution.

Example 1: Buyers Jane and John listed their house with Agent Mark of XYZ REALTORS. After several weeks of showings but no feed back from Agent Mark, buyers Jane and John began to wonder if Agent Mark was putting his best effort in marketing their home. So they talked to a friend who had just sold their home and the friend asked, “When does your listing expire?” Jane responds that she doesn’t know. The friend asked her to check her listing agreement that they signed. Jane says she never got a copy of the listing agreement. What do you see that Agent Mark did wrong, if anything? Example 2: Agent Brittany writes an offer for her buyers after multiple discussions on the offering price. Agent Brittany leaves to present the offer to the listing agent without leaving a copy with her buyers. What issues do you see with Agent Brittany leaving without giving her buyers a copy of the offer?


AG Opinion – Exemptions to licensure On March 6, 2104 the Office of the Attorney General issued Opinion No. 14-27 concerning questions about Exemptions from the Real Estate Broker License Act. 1. Does the exemption from licensure under the Tennessee Real Estate Broker License Act of 1973 provided to “corporation, foreign or domestic” in Tenn. Code Ann. 62-13-104(a)(1)(F) apply to a limited liability company? 2. If an individual who is a member of an entity (Corp) that qualifies for the exemption under Tenn. Code Ann. 62-13-104(a)(1)(F) has the primary responsibility of performing activities on behalf of such entity for which a license is otherwise required under Tenn. Code Ann. 62-13-102(4)(A) or (B), does it matter for purposes of the exemption whether the individual’s compensation is dependent upon or directly related to the value of the real estate as to which the actions are performed? 3. If an individual performs activities for which a license is required under Tenn. Code Ann. 62-13-102(4)(A) or (B) on behalf of an entity that qualifies for the exemption under Tenn. Code Ann. 62-13-104(a091)(F) but not perform such activities as a vocation does the exemption apply to that person if his or her compensation is based on a distribution of profits to the owners of the entity from the in the entity or some other calculation not directly related to the sale or rental of the property.


Fingerprint THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE amended TAC Section 62-13-303 – Qualifications – Prerequisites for Licensing Effective January 1, 2014 by adding the following: Section 1. (l) (1) The commission shall require all applicants for initial licensure issued under this chapter on or after January 1, 2014, to submit a complete and legible set of fingerprints on a form prescribed by the commission or in such electronic format as the commission may require to the commission or to the Tennessee Bureau of Investigation for the purpose of obtaining a criminal background check from the Tennessee Bureau of Investigation and the Federal Bureau of Investigation. (2) The commission shall refuse to issue a license to an applicant for initial licensure who does not comply with subdivision (3) The commission shall conduct a criminal background check of each applicant Rule 1260-01-17 Fingerprinting

1. Any initial applicant who is required to submit a complete and legible set of fingerprints for the purpose of obtaining a criminal background check pursuant to T.C.A. § 62-13-303 shall submit said fingerprints in an electronic format.

The full content of T.C.A. § 62-13-303 and Rule 1260-01-.17 can be found in the Appendices.


Section II: PB Supervision Rule 1260-02-.03 Offices a. Unlicensed Branch Office One of the violations discussed under Section 1 TREC Rules, Regulations and Updates was operating an unlicensed Branch Office. Can you name some examples of an Unlicensed Branch Office? 1. 2. Can you name some examples of offices that are exempt from the requirement for a branch office license? 1. 2.


b. Advertising One of the multiple violations previously discussed was the failure of the Broker to adequately supervise the advertising activities of their affiliates. T.C.A. § 62-13-312. DISCIPLINE – REFUSAL, REVOCATION OR SUSPENSION OF LICENSE – DOWNGRADING OF LICENSEE c. Earnest Money/Security/Trust Deposit There were two multiple violations related to Earnest Money: 1. Failing, within a reasonable time to account for or to remit moneys belonging to others. 2. Failure to timely disburse or interplead earnest money. A real estate company has the required separate Earnest Money Account for the purpose of holding any funds, which may be received as deposits. The company also has a property management company. How many separate accounts to handle deposits must the company have? Can the earnest money account be in an interest bearing account and if so are there any guidelines?


Is there a timeline on disbursing the earnest money? d. New Mandatory Real Estate Firm Audit Under the new Mandatory Broker Audit the first Audit Forms went out by mail in May, 2014 to approximately 200 Principal Brokers. Audit form responses are to be returned completed with supporting documentation within 30 days of date of audit cover letter. TREC will have an auditor on site to look over audits. The plans are to ultimately send out 400 Mandatory Broker Audit packages each month. Audit Form cover letters which advises the principal broker that failure to return the completed Audit Form, with all attachments/exhibits in the proper time frame shall result in disciplinary action by the Commission including civil penalties of up to $1,000.00 per violation and that along with the civil penalty the Audit Form must be completed. (Source: TREC Meeting Minutes June & July 2014)


HOT LINE: Agent Has Established a LLC? QUESTION: If an agent has established a LLC, do we make their commission checks payable to the LLC or to the agent?


Section III: Agency Law Even though Tennessee’s Agency Law has been in effect since January 1, 1996, it is still often violated or at least misunderstood…

A. Let’s Review Things Every Licensee Should Know:

1. An agency relationship in Tennessee is not implied or created by a licensee’s actions, behavior or even his/her statements. It cannot be created accidentally.

2. A licensee is always a facilitator by default and remains a facilitator until a bilateral written agency agreement has been negotiated with a consumer and signed by both parties. 3. A licensee’s delivery of a written disclosure, or confirmation of agency status, saying that he/she is an agent does not make the licensee an agent. [A unilateral disclosure is not a bilateral agreement.] 4. Tennessee’s agency law supersedes what is known as the common law of agency.

5. A traditional (non-designated) agency relationship obligates everyone in the office to an agency relationship with that buyer or seller. 6. Designated agency establishes an agency relationship between only one real estate licensee in the office (to the exclusion of everyone else in the office, including the managing broker) and a buyer or seller. 7. An office policy of designated agency from the outset – in all transactions (whether in- house or not) – is a common and perfectly legitimate agency office policy in Tennessee. 8. Every change in agency status during the course of working with a consumer must be fully disclosed to the consumer at the time status is changed and should be documented, even if the consumer gave prior consent to changes of status should they occur.

9. An agency relationship is not required in order for a licensee to receive a commission; a facilitator may usually receive a commission as easily as a buyer’s agent. [The listing agent’s payment of a commission to a selling agent compensates the selling agent for procuring a willing and able buyer, not for his/her agency representation of the buyer.]

10. Every real estate office in Tennessee should have a written agency office policy.

11. Sub agency is still legal in Tennessee but is rarely offered. In actual practice, a subagent generally has little or no true allegiance or loyalty to the client or client’s best interests. 12. Dual agency is still legal in Tennessee (if it is fully disclosed to both parties and both parties consent to it). Disclosed dual agency, however, is rarely practiced. Most legal experts still believe that it greatly increases legal liability for both the licensee and his/her firm and the potential for complaints to the Tennessee Real Estate Commission.


B. (Unfortunately) Common Problems…

1. Disclosing Too Much

2. Disclosing Too Little

3. Putting Commission Above Honesty and Duty

4. Trying To Serve Two “Masters”

Consider the following case: One of the agents in my office sold a historic home once in downtown Franklin. She was under a buyer agency agreement with buyers to whom she showed the house. While they were home “sleeping on it” and trying to decide how much to offer, she sold it to someone in her neighborhood. She had mentioned the home to them at a cocktail party the same night that she showed the home to her clients. She took the neighbors to see the home the next morning and wrote and negotiated the offer the next morning. She never told her buyer clients the truth. When they called to say they were ready to write the offer, she responded, “I’m sorry but that home has sold.”

How SHOULD this agent have handled things?

5. Trying To Wear Two Hats at the Same Time

Some people STILL believe that you can be a seller’s agent (the listing agent) and a facilitator for the buyer at the same time.


NOTES:


C. A Case Study To Consider… Who Does What?

Angie Jones with Full Service Realty was excited to have an appointment at her office with a wonderful couple, Bob and Linda Stills, referred to her by one of her preferred vendors. On the phone, Bob and Linda had shared that they had sold their home, were pre-qualified with a lender, and were ready to move at any time, once they found the perfect home. Angie was well prepared and had a wonderful presentation and materials to educate the Stills as to the process of purchasing a home in a new town and community. The Stills were so impressed with Angie’s professionalism and knowledge that they eagerly signed a Buyer Representative Agreement to work exclusively with Angie as their designated buyer’s agent. Angie set up about 10 homes to view on a lovely Saturday in October. By 3:00 p.m. the Stills had narrowed their choice down to 2 different homes. When Angie called the listing agent on each of these properties to see what she could learn about their status and availability, she noticed – in the REALTOR® remarks on MLS – that the agent representing the home that appeared to be the buyer’s first choice was directing her instead to call the seller. Concerned about this, she called the listing agent Jay James anyway to see what were the circumstances surrounding this property. Jay informed her that he only took limited service listings for a flat fee to put them in MLS. Other than that, the seller was the one she needed to work with.

Feeling very apprehensive, Angie called the seller to ask for the Property Condition Disclosure and the lead-based paint disclosure prior to submitting a contract. The sellers informed her that they didn’t have such forms and asked her to bring them over when she had the offer.

Angie wrote up the offer for her buyers and presented it to the sellers. The sellers asked Angie to help them write a counter offer and finalize all the paperwork. After explaining carefully her role as fiduciary to Bob and Linda Stills, the sellers were very concerned about who would represent them. Angie asked if their agent, Jay, had explained agency and his role in this sale with them. She also asked them if they had signed a waiver of minimum services as prescribed by Tennessee’s agency law. They said that Jay had not explained any of this to them and had not heard of these things.

What should Angie do at this point to represent her buyer in purchasing this home? Has she done anything improper up to this point? What should Jay have done when he listed the property?

Has there been a violation of Tennessee Law or the REALTOR® Code of Ethics? What does Tennessee’s Agency Law actually require??


Case 2: Who is the Buyer Agent? Buyer Agent Jane shows a buyer another agent’s listing (Listing Agent Joe). The Buyers are interested in LA Joe’s listing. Buyer Agent Sally calls LA Joe to set up a showing. LA Joe tells BA Sally that the buyer has already seen the property with BA Jane. BA Sally tells LA Joe that she has already talked with BA Jane and has worked things out. BA Jane drives by the property and sees buyer looking at property with BA Sally. BA Jane pulls into the driveway and inquires what is going on. FACTS: There is no contract between ANY agent and the buyer. BA Sally never contacted BA Jane prior to showing property. What are your thoughts? Is there a signed agreement? Is it Exclusive or Non-Exclusive Agreement? What Now?

Agency Getting caught between one’s duties to a client (buyer or seller) and the need or desire to do the “right thing” can be frustrating!

A. Obeying Lawful (But) Inappropriate Instructions From a Client

B. Taking (Perhaps Unfair) Advantage of a FSBO

Consider the following case…

An agent sold a FSBO for at least $25,000 under market value. The agent felt the conflict of her duty of “honesty and loyalty” to her buyer client with her desire to be fair to the seller. She tried to resolve her conflicted feelings by convincing the homeowner to hire an agent. The seller, however, was very rude and let her know that he didn’t need an agent and didn’t think anyone else did. The agent’s buyer-client resold the home a couple of years later and made a substantial amount of money since he had $25,000 of built-in equity. Did the agent do the right thing?

Is there anything the agent did NOT do that you would have done?


C. Another Type of Conflict from the TAR Hot Line…

QUESTION: I am a real estate agent representing my client as the designated agent for the buyer. The seller’s closing attorney contacted my buyer by letter and stated in that letter that the buyers should have their real estate agent use the seller’s closing attorney to close the property and stated that, if the buyers did indeed use the seller’s closing attorney, their office would reduce the closing fees. What should I do? ANSWER:

T.C.A. § 62-13-404 Duty owed to licensee’s client

Any licensee who acts as an agent in a transaction regulated by the Tennessee Real Estate Broker License Act of 1973 owes to such licensee’s client in that transaction the following duties to: (1) Obey all lawful instructions of the client when such instructions are within the scope of the agency agreement between licensee and licensee’s client; (2) Be loyal to the interests of the client. A licensee must place the interests of the client before all others in negotiation of a transaction and in other activities, except where such loyalty duty would violate licensee’s duties to a customer under § 62-13-402 or a licensee’s duties to another client in a dual agency; and (3) (A) Unless the following duties are specifically and individually waived, in writing by a client, a licensee shall assist the client by: (i) Scheduling all property showings on behalf of the client; (ii) Receiving all offers and counter offers and forwarding them promptly (iii) to the client;

(iv) Answering any questions that the client may have in negotiation of a (v) successful purchase agreement within the scope of the licensee’s expertise; and (vi) Advising the client as to whatever forms, procedures and steps are needed after execution of the purchase agreement for a successful closing of the transaction. (B) Upon waiver of any of the duties in subdivision (3)(A), a consumer shall be advised in writing by the consumer’s agent that the consumer may not expect or seek assistance from any other licensees in the transaction for the performance of the duties in subdivision (3)(A).


NOTES:


D. Let’s Double-Check Our Agency IQ…

1. How is an agency relationship created? 2. Which party (or parties) does a Facilitator represent? 3. What is your relationship with a buyer to whom you are showing properties prior to executing a Buyer Agency Agreement? 4. You represent the seller as the listing agent. An unrepresented buyer wants you to draft an offer for them. Do you have to change agency status?

5. Your listing agreement includes the seller’s consent to allow you to default to Facilitator status if an unrepresented buyer comes along. If this happens, do you need to notify the seller?

6. Do you automatically become a Facilitator by selling your listing to an unrepresented buyer?

7. Is it okay to let an unrepresented buyer assume you represent them as long as you haven’t said it directly?

8. You must use designated agency for in-house listings. True of False?

9. If you use traditional agency as office policy at the outset of agency relationships, an agency relationship exists between you and all the clients of all members of your firm. True or False? 10. When two licensees in the same firm are representing the buyer and seller as designated agents for their respective clients, what is the status of the managing broker? 11. Assume your office uses traditional (non-designated) agency as office policy. You take a buyer client to view a home listed by another agent in your office. Is there a conflict?


12. There’s no real difference between traditional and designated buyer and seller agency. a. True

b. False 13. Designated agency is only used for in-house transactions. a. True b. False 14. “Facilitator” and “Transaction Broker” mean the same thing. a. True b. False 15. Traditional agency creates an agency relationship between a client and every agent within a firm.

a. True b. False 16. Which of the following applies to designated agency? a. It creates an agency relationship between the client and ALL the agents in the office. b. It can only be used in in-house transactions. c. It requires an agent to keep clients’ information confidential from other agents in the office.

17. You must be either a disclosed dual agent or a facilitator to receive “both sides” of the commission in a transaction. a. True b. False 18. If the office operates as a designated agency office, they may keep all files in a central area for all to access? Source TAR Digest, August 19, 2014 Hotline Questions


19. In a team situation, the only one who needs to sign a buyer’s agency or listing agreement is the one who actually obtained the client. 20. An Agency Disclosure Form is the same as a Buyer’s Agency Agreement. 21. If a couple comes in to your Open House, should they declare that they are working with an agent or is it your obligation to ask? This disclosure is included in TAR Form RF 141, The Exclusive Buyers Agency Agreement.


Section III: Contracts

CHANGES TO THE NUMBERING OF TAR FORMS

The TAR Forms Committees looked at the various forms which are offered to its members and determined that they could be made a bit more user friendly. One of the main issues which members have is quickly finding the form to suit their particular needs. When TAR began providing forms to its members a little over fifteen years ago, there were far fewer forms than there are today. Early in the forms’ history, a numbering system was developed where in similar forms were grouped together in a numerical sequence, preceded with an “F”. However, over the years, new forms have been introduced and others have been deleted from the form library. As a result, the numerical sequence is no longer indicative of where a form might be found. In addition, commercial forms are located sporadically throughout the numbering system rather than being grouped together. Both the residential and the commercial forms committees decided to introduce a new numbering sequence to make using the TAR forms a bit easier for its members. There will be two different sets of forms – one for residential forms (which will include residential, lots and lands, and farms) and will begin with the letters “RF”. The other will be for commercial forms and will begin with the letters “CF”. Within both the residential and commercial forms, the individual forms will then be organized within one of seven different categories, depending upon the forms’ use. The different categories are:

• 100 Series. This series includes the agency forms and agreements between a real estate firm and its clients/customers such as listing agreements, buyer’s representation agreements, terminate of agency agreements, and agreements to show property.

• 200 Series. This includes disclosures made by the client/customer. Documents in

this series include property condition disclosure forms, impact fees/adequate facilities tax disclosures, lead based paint disclosures, etc.

• 300 Series. This series includes disclosures from the real estate firm to clients

and customers. Documents in this series include confirmation of agency status, disclaimer notices, personal interest disclosures, referral for services, etc.

• 400 Series. This series contains contracts between parties in a real estate

transaction. Documents in this series include the purchase and sale agreements, lease agreements, confidentiality agreements, earnest money disbursement and release agreements, etc.

• 500 Series. This series includes exhibits to contracts.


• 600 Series. This series contains addenda, amendments, counter offers, notifications, etc. This includes back up agreements, right to continue to market property forms, FHA/VA addenda, counter offers, amendments, repair/replacement forms, final inspection documents, notifications, multiple offer disclosures, etc.

• 700 Series. This series is comprised of miscellaneous documents. It includes

things such as referral agreements, compensation agreements, interpleader documents, information sheets, etc.

Within each series of numbers, forms are assigned a three digit number and grouped

together with similar forms. For example, the standard listing agreements have numbers in the low 100s. The lot/land listing agreements have numbers in the 130s. Buyer’s representation agreements are in the 140s. In addition, documents, which are the same for both residential and commercial, have the same three-digit number. For example, the standard purchase and sale agreement for residential property is form RF 401 and for commercial property, it is CF 401. This should make things much easier for those practitioners who engage in both residential and commercial transactions. While there will be a learning curve, the committees believe that this new system will make things much easier to locate needed forms and will allow enough flexibility so that additional forms can be added without altering the numbering system for years to come.

Below you will find several charts, which list both the old and new numbers for the

residential and commercial forms. If you have any questions concerning the forms themselves or the new numbering system, please contact the TAR Legal Hotline at (800) 899-5297 or via email at [email protected].

RESIDENTIAL FORMS

100 Series

New Number

Form Name Old Number

RF 101 Exclusive Right to Sell Listing Agreement (Designated Agency) F87 RF 102 Exclusive Right to Sell Listing Agreement (Seller Agency) F88 RF 131 Lot/Land Exclusive Right to Sell Listing Agreement

(Designated Agency) F50

RF 132 Lot/Land Exclusive Right to Sell Listing Agreement (Seller Agency)

F95

RF 141 Exclusive Buyer Representation Agreement (Designated Agency)

F3

RF 142 Exclusive Buyer Representation Agreement (Buyer Agency) F94 RF 143 Non-Exclusive Buyer Representation Agreement (Designated

Agency) F2

RF 144 Non-Exclusive Buyer Representation Agreement (Buyer Agency)

F96

RF 151 Listing/Agency Mutual Release Agreement F82 RF 161 Agreement to Show Property F22


200 Series

New

Number Form Name Old

Number RF 201 Tennessee Residential Property Condition Disclosure F16 RF 202 Tennessee Residential Property Condition Disclosure Update F16a RF 203 Tennessee Residential Property Condition Exemption

Notification F42

RF 204 Tennessee Residential Property Condition Disclaimer Statement

F43

RF 205 Additional Required Residential Disclosures F85 RF 206 Lot/Land Seller's Property Disclosure F80 RF 207 Impact Fees or Adequate Facilities Taxes Disclosure F83 RF 208 Subsurface Sewage Disposal System Permit Disclosure F84 RF 209 Lead Based Paint Disclosure for Purchase F15 RF 210 Lead Based Paint Disclosure for Rental Property F86 RF 211 Green Features System Checklist F97

300 Series

New Number


RF 301 Working with a Real Estate Professional F1(b) RF 302 Confirmation of Agency Status F1(c) RF 303 Notification of Change in Agency Status F1(a) RF 304 Disclaimer Notice F14 RF 305 Personal Interest Disclosure and Consent F17 RF 307 Referral for Service Disclosure F46

400 Series

New Number


RF 401 Purchase and Sale Agreement F9 RF 403 New Construction Purchase and Sale Agreement F60 RF 404 Lot/Land Purchase and Sale Agreement F10 RF 421 Residential Lease Agreement for Single Family Dwelling F58 RF 461 Real Estate Offer Confidentiality Agreement F98 RF 481 Earnest Money Disbursement and Release of Purchase and

Sale Agreement F30

RF 482 Escrow Agreement F20 RF 483 Option Agreement F27


500 Series

New Number


RF 501 Condominium Legal Exhibit F19 RF 505 Pre-Construction Specification Exhibit F62 RF 506 Legal Description Exhibit to Lot/Land Purchase and Sale

Agreement NEW

600 Series

New Number


RF 601 Amendment to the Listing Agreement F81 RF 602 Short Sale Amendment to the Listing Agreement F49(b) RF 621 Addendum F45 RF 622 Back-Up Agreement Contingency Addendum F13 RF 623 Seller's Right to Continue to Market Property Addendum F34(a) RF 624 Seller's Notice to Buyer of Receipt of Acceptable Offer F34(b) RF 625 FHA / VA Addendum F47 RF 626 Temporary Occupancy Agreement for Buyer Prior to Closing

Addendum/Amendment F31

RF 627 Temporary Occupancy Agreement for Seller After Closing Addendum/Amendment

F32

RF 628 Assumption Agreement Addendum F18 RF 629 Resolution of Disputes by Mediation Addendum/Amendment F24 RF 630 New Construction Allowance Addendum F61 RF 631 Tenant Information for Residential Lease Agreement

Addendum F59

RF 641 Amendment to Buyer’s Representation Agreement NEW RF 651 Counter Offer F8 RF 652 Counter Offer to Residential Lease Agreement NEW RF 653 Amendment to Purchase and Sale Agreement F6 RF 654 Repair/Replacement Proposal F4 RF 655 Repair/Replacement Amendment F5 RF 656 Notification F26 RF 657 Closing Date/Possession Date Amendment F7 RF 658 Buyer Authorization to Make Repairs and Improvements prior

to Closing Amendment F29

RF 659 Short Sale Amendment to Purchase and Sale Amendment F49(c) RF 660 Buyer's Final Inspection Amendment F41 RF 661 New Construction Change Order Amendment F12 RF 662 New Construction Walk Through List F63 RF 663 Multiple Offer Disclosure Notification F37 RF 664 Amendment to Lease Agreement NEW


700 Series

New Number


RF 701 Referral Agreement F28 RF 702 Compensation Agreement between Listing and Selling Broker F56 RF 706 Interpleader F21 RF 707 Special Stipulations F33 RF 708 Timeline Compliance Checklist for Purchase and Sale

Agreement F64

RF 709 Request for Condominium Association Information F23 RF 710 Request for Information from the Tennessee Department of

Environment and Conservation Division of Ground Water Protection

F93

RF 711 Vendor List F36 RF 712 Get a Home Inspection and Property Survey F48 RF 713 Disclosure of Short Sale Information to Buyers and Sellers F49(a) RF 714 Water Supply and Waste Disposal Notification F55 RF 715 Additional Signature Blocks for Residential Documents NEW RF 716 Additional Signature Blocks for Residential Purchase and Sale

Agreement and Counter Offers NEW


COMMERCIAL FORMS

There are quite a few new commercial forms coming in 2015! For those who practice both residential and commercial real estate, you will recognize many of the new forms which were previously exclusively for residential transactions. These forms have now been modified so that they can be used in commercial transactions.

100 Series

New Number


CF 101 Commercial Exclusive Seller Listing Agreement F66 CF 103 Commercial Exclusive Agency Listing Agreement F91 CF 104 Commercial Exclusive Open Listing Agreement F92 CF 121 Commercial Exclusive Leasing Agreement F67 CF 124 Commercial Open Listing Agreement (for Lease) F68 CF 151 Commercial Listing Mutual Release NEW CF 161 Agreement to Show Commercial Property NEW

200 Series

New Number


CF 201 Commercial/Industrial Real Property Disclosure F51 CF 209 Commercial Lead Based Paint Disclosure (for Purchase) NEW

300 Series

New Number


CF 305 Commercial Personal Interest Disclosure NEW CF 307 Commercial Referral for Service Disclosure NEW

400 Series

New Number


CF 401 Commercial Purchase and Sale Agreement F65 CF 402 Commercial Letter of Intent (for Purchase of Property) F78 CF 421 Commercial Lease Agreement (Single Tenant) F69 CF 422 Commercial Lease Agreement (Multi-Tenant) F70 CF 423 Commercial Letter of Intent (for Lease) F79 CF 441 Commercial Sublease Agreement F72 CF 442 Commercial Sublease Consent Agreement F73


CF 443 Commercial Lease Guaranty F74 CF 444 Commercial Lease Termination F75 CF 461 Commercial Mutual Non-disclosure and Confidentiality

Agreement F90

CF 481 Commercial Earnest Money Disbursement and Release of Commercial Purchase and Sale Agreement

NEW

CF 482 Commercial Escrow Agreement NEW CF 483 Commercial Option Agreement NEW

500 Series

New Number


CF 501 Exhibit A to Commercial Purchase and Sale Agreement (Legal Description)

F44

CF 502 Exhibit B to Commercial Purchase and Sale Agreement (Due Diligence Documents)

F52

CF 503 Exhibit C to Commercial Purchase and Sale Agreement (Additions to Seller's Closing Documents)

F53

CF 504 Exhibit D to Commercial Purchase and Sale Agreement (Seller's Warranties and Representations)

F54

CF 507 Exhibit A to Commercial Listing Agreement NEW

600 Series

CF 601 Amendment to Commercial Listing Agreement NEW CF 603 Amendment to Commercial Lease Agreement NEW CF 621 Addendum to Commercial Purchase and Sale Agreement NEW CF 623 Commercial Right to Continue to Market Property Addendum NEW CF 624 Commercial Seller's Notice to Buyer of Receipt of Acceptable

Offer NEW

CF 632 Commercial Lease Addendum NEW CF 651 Counter Offer to Commercial Purchase and Sale Agreement NEW CF 652 Counter Offer to Commercial Lease Agreement NEW CF 653 Amendment to Commercial Purchase and Sale Agreement NEW CF 657 Commercial Closing Date / Possession Date Amendment NEW CF 664 Amendment to Commercial Lease Agreement F71


700 Series

CF 701 Commercial Referral Agreement F57 CF 702 Commercial Compensation Agreement between Listing and

Selling Broker NEW

CF 703 Commercial Lease Commission Assumption Agreement F76 CF 704 Notice of Agreement to Pay Leasing Commission F11 CF 705 Release of Notice of Agreement to Pay Leasing Commission on

Commercial Property F77

CF 706 Commercial Interpleader NEW CF 707 Commercial Special Stipulations Language NEW CF 711 Commercial Vendor List NEW CF 715 Additional Signature Blocks for Commercial Documents NEW CF 716 Additional Signature Blocks for Commercial Purchase and Sale

Agreement and Counter Offers NEW

Notice- This verbiage will be included in the footer of every page of all TAR forms. Anytime you use Transaction Desk, Forms on the Fly OR any authorized third party vendor a user authentication process will take place. If authorized, your name will be digitally inputted into the provided field. See footer example below-

RED FLAGS -

• Any forms provided with a blank field will be considered unauthorized use.

• Any form provided with a handwritten name in the field will be considered unauthorized use.

• Any forms that appear manipulated or tampered will be considered unauthorized use.

• Federal Copyright infringements carry severe penalties and court costs. TAR will actively pursue violators.


Activities: Choose the appropriate form and series number used in the different situations presented and record the form number below. Activity 1 - Disclosures made by clients and/or customers


Activity 2 - Agency and Agreements between firms and its clients and/or customers.


Activity 3 - Addenda, amendments, counter-offers and notifications.


A. The What and When: 1. The TAR Purchase and Sale Agreement (RF401) states: “the term day(s) used throughout this Agreement shall be deemed to be calendar day(s) ending at 11:59 p.m. local time unless otherwise specified in this Agreement. Local time shall be determined by the location of the Property. In the event a performance deadline, other than the Closing Date, Date of Possession, Completion of Repair Deadline (Repair/Replacement Amendment), and Offer Expiration date, occurs on a Saturday, Sunday or legal holiday, the performance deadline shall be extended to the next following business day. Holidays as used herein are those days’ deemed federal holidays pursuant to 5 U.S.C. 6103. In calculating any time period under this Agreement, the commencement date shall be the day following the initial date (e.g. Binding Agreement Date).”

Example: The Buyer must make their loan application and instruct Lender to order credit report and appraisal within five (5) days after the binding agreement date. So, if the binding agreement date is Thursday, then Friday is Day 1, Saturday is Day 2, Sunday is Day 3, Monday is Day 4 and Tuesday is Day 5. That means the Buyer needs to have made the loan application and instructed Lender to order credit report and appraisal before 11:59 p.m. on Tuesday.

(The TAR Purchase and Sale Agreement (RF401) defines when the Binding Agreement Date will be: “This instrument shall become a “Binding Agreement” on the date (“Binding Agreement Date”) the last offeror, or licensee of last offeror, receives notice of offeree’s acceptance. Notice of acceptance of the final offer was received on day of _, at (time) by (name).” The date should be filled in by the last offeror (either the seller if the offer is accepted without any counters, or the person to receive the acceptance of the final counter offer or their agent. This will allow the agent to add the date on which it was actually received. All timelines will start on the next day for purposes of calculating days. Lines 462-465. 2. Preprinted Deadlines: Preprinted deadlines are just as important as those you write in! If it’s in the contract, it must be done by the date specified. Failing to meet deadlines may constitute a breach. An agent that allows a deadline to pass unnoticed may have a complaint filed against them with TREC and/or the local board as well as possibly facing a lawsuit.

It is imperative to discuss the pre-printed deadlines in the TAR Purchase and Sale Agreement (RF401) with buyer clients BEFORE submitting an offer. If, for any reason, they will be unable to meet a required pre-printed deadline, this should be noted clearly BEFORE an offer is made or counteroffer is submitted. For seller clients, you must discuss pre-printed deadlines and filled in dates. If for any reason, they will be unable to meet a required date or deadline, this should be noted clearly in a counteroffer.

Failure to meet a contractual deadline may result in a breach of contract, forfeiture of earnest money, unenforceable performance and, in some cases, liability for civil damages.


When a preprinted deadline needs to be changed, you should first check to see if the issue is addressed by another TAR form. If not, the EXACT verbiage should be copied with only the number of days for performance changed. By altering the verbiage within the attorney-approved Purchase and Sale Agreement (RF401), you could end up making the party’s performance unenforceable.

3. TAR offers the Purchase and Sale Agreement Checklist (RF704) to assist licensees in meeting contractual deadlines.

4. The TAR Notification (RF656) form serves as a notification form for all notices required in the Purchase and Sale Agreement (RF401). This form assists licensees in creating a paper trail of their compliance.

5. You must be aware of your client’s options in the case of the other party’s failure to meet a specific deadline, perform a required action and/or deliver a required notice.

Exercise: What Happens Next??

For the following situations, explain what might happen next, including the parties’ options.

1. The RF401 states that the buyer will deliver a check for $5000 earnest money to the listing agent no later than 2 days after BAD. At the end of the third day, the listing agent has not received the check.


2. The seller receives an offer from a buyer and immediately counters which the seller’s agent delivers the counter to the buyer’s agent. The buyer’s agent sends a text to the seller’s agent that the buyer has accepted the counteroffer but the buyer had not yet signed the counteroffer. The seller received a second offer, which he promptly signed and the seller’s agent delivered back to the second buyer’s agent. The seller’s agent then notified the first buyer’s agent that they had accepted an offer from another buyer. The first buyer and the buyer’s agent demand that they had valid contract first with the text notification. 3. The buyer has checked the box that the Financing Contingency is Waived but has checked the box that the Agreement IS CONTINGENT upon the appraisal. 4. Binding Agreement Date was edited from provided to received. Remember, the BAD starts all time frames or deadlines in the contract.


B. Inspections and Repairs:

“Inspections” includes ALL inspections and reports related to the condition of the property. The termite inspection is included and if the buyer waives the inspections, they could “except” the termite inspection or any other specific inspection to add it back in by inserting the “exception” in the Special Stipulations paragraph. Big Point: The “exception” field is no longer provided. If the box is checked, ALL INSPECTIONS are waived.

Big Point: Included is a Resolution Period, which allows the Buyer and Seller to mutually agree upon a certain number of days to resolve repairs and replacements. F4 – Repair/Replacement Proposal – is for negotiation purposes only and is not to be included as part of the Purchase and Sale Agreement. It does not go to the lender unless requested by the lender. There can be an unlimited amount of proposals between the Buyer and Seller. The RF654 is signed only by the party making the proposal. The seller might want to see full report but it the seller’s responsibility to request. If they do not meet a mutual written resolution in the agreed upon time frame, the Agreement is terminated or they have the option to extend the Resolution Period through a mutually agreed upon Amendment. In any event the parties agree to negotiate repairs in good faith. (This means the Seller must respond to the list. He does not have to agree to fix anything, but he cannot simply remain silent. Failure to respond at all could give the buyer a claim for breach of contract and failure to act in good faith).

F5 – Once the buyer and seller agree on what items will be repaired or replace, then the final agreement shall be submitted on the RF655 with both parties’ signatures. It /then becomes an amendment to the RF401 and will go to the lender.

Costs associated with Inspections and Repairs! All inspections are performed at the expense of the buyer unless otherwise specified in the Special Stipulations area (the termite inspection costs are NOW the responsibility of the Buyer). Buyers and Sellers should negotiate any needed repair costs using the Buyer Inspection Contingency Removal/Notification (RF654) or the Repair Counter Proposal (RF655) form. There is a key exception – buyers who are receiving VA loans. Government regulations will not allow buyers with VA loans to pay for termite inspections. Therefore, TAR recommends using form RF625, the VA/FHA Addendum. This form states that the buyer will order the inspection, but the seller will be responsible for paying for it either at or before closing.

Home Inspectors are licensed and regulated by a regulatory board of the Tennessee Department of Commerce & Insurance. Tenn. Code Ann. §62-6-301(5) defines a home inspector as “any person who is licensed under this part as a home inspector and who engages in the business of performing home inspections and writing home inspection reports.” Clients and customers should be encouraged to use a licensed home inspector. Although buyers may inspect the property themselves, this may not


carry the same weight in the eyes of the seller as a report from a licensed home inspector.

When purchasing properties offered, “as is,” buyers are still entitled to make any and all desired inspections – they can and should do so! Buyers may still attempt to negotiate any needed repairs. Buyers may cancel the contract based on any items disapproved in the inspection report or any defects disclosed by the seller. Purchasing a property “as is” does not limit a buyer’s options under the TAR Purchase and Sale Agreement (RF401), although, in practice, an “as is” Seller may be less likely to complete or negotiate needed repairs.

Sellers offering a property “as is” are still required to fully disclose any property defects of which they have knowledge via the Tennessee Residential Property Condition Disclosure (RF201), unless exempt. It is especially important that Sellers answer honestly when a buyer inquires about a specific issue, i.e. plumbing or wiring. In practice, Sellers may offer a property “as is” because they don’t wish to make any repairs or because they are unaware of what problems may exist. Offering a property “as is” does not obligate buyers to accept the property “as is” until they’ve completed all desired evaluations and inspections. It is important to familiarize yourself with lender requirements in your area related to appraisals and inspections. Know what lenders expect to receive before they order the required items for the loan obligations. . If a lender needs the appraisal and/or inspection report before ordering loan documents, the deadlines included in the RF401 should allow for this to happen to avoid putting the buyer at risk for breach. The parties may also wish to include in the special stipulations that the appraisal and/or inspection report must be obtained on or before a specific date. . Buyers should be advised to stay in regular contact with the Lender to ensure their obligations are fulfilled. Lenders should be made aware of the contractual deadlines for the loan obligation.

In Tennessee, a wood destroying insect infestation inspection report is a warranty for 90 days of the accuracy of any representations made in the report. After 90 days, a new report must be obtained to reduce the liability for the parties involved.


Workshop: Inspections and Repairs Students will workshop the following situations, using the RF401 and other related forms, if applicable.

Scenario 1: The buyer is making an offer contingent on inspections. They are willing to pay for the inspection, which they expect to have completed within 10 days. If repairs are needed, they are willing to negotiate with the seller. How would you address this in the offer?

Scenario 2: The buyers obtain an inspection report identifying needed replacement of the HVAC system, estimated at $2500. They want the seller to replace the system before they will proceed with the transaction. How would you proceed if you represent the buyer? Scenario 3: You represent the seller. The buyer requests repairs to the roof, estimated at $1500. The seller is willing to pay no more than $500 towards the needed repairs. How would you proceed?


C. Special Stipulations:

The preprinted portions of the Purchase and Sale Agreement (RF401) have been approved by the TAR forms committee and TAR attorneys.

Handwritten provisions prevail! When you write something in the special stipulations section, it should be consistent with the rest of the TAR Purchase and Sale Agreement (RF401). Whenever possible, use the same verbiage included in the preprinted portion, referencing the specific line number(s), only changing what is absolutely necessary!

Before writing something into the special stipulations section, you should FIRST check to make sure the issue is not addressed by another TAR form.

NEVER include phrases such as TBD, actual costs, negotiable, etc. Always be as specific as possible, especially when it comes to dates, amounts and actions required of either party. If you do not, then the contract may not be enforceable.

The Special Stipulations Library (RF707) exists to assist you in addressing items in this section.

If you’re using the special stipulations section to write in a contingency, there is likely another more appropriate TAR form.

The special stipulations section can be appropriately used to make simple changes to a preprinted item, such as a required deadline, if the line number is referenced and exact verbiage reprinted, with only the number of days changed.

The special stipulations section should NEVER be used to write a new contract. Skill Practice: Special Stipulations

Students should divide into groups to address the following list of scenarios. In your groups, decide whether the item should be addressed in the special stipulations section and, if so, how. If the item should NOT be addressed in this section, identify how it would be addressed by an alternative form or section of the RF401. Choose a representative, who should be prepared to share the group’s answers with the entire class.

1. The buyer’s lender will not order the appraisal until 5 days after application.


2. The seller is willing to pay for the buyer’s document preparation and attorney’s fees, up to $500.

3. The buyer wants the seller to have the exterior of the home pressure washed prior to closing.

4. The buyer is purchasing a foreclosed home. The bank (seller) has agreed to allow the buyer to replace three broken windows prior to closing. 5. The buyer would like to have the home inspected for radon.

6. The contract is contingent on the sale of the buyer’s existing home in Florida.

7. The buyer is obtaining an FHA loan. The seller has agreed to pay $3000 towards their closing costs, or provide them with a credit in the event it exceeds the allowable amount.

8. Exercise: Stipulation Identification

Tear out the “Yes”/”No” sheet of paper in your handout and fold it in half. As the instructor reads through the following list of items, identify whether the item might appropriately be addressed in the special stipulations section. Students will answer by displaying “Yes” or “No”.

1. The buyer is obtaining a VA loan. 2. The buyer wants to change the number of days required to submit their loan application.

3. The buyer’s offer is contingent on the sale of their existing home.


4. The buyer wants the seller to make sure the house is swept clean and free of debris.

5. The buyer wants the seller to replace the damaged front door. 6. The property includes a large parcel of land and the buyer wants to make the offer contingent on a survey.

7. The buyer wants to make the contract contingent on a test of the exterior injection well. 8. The home is located behind another existing home and the driveway runs alongside the front neighbor’s property (although it is a part of the saleable property.) The buyer wants assurance their access won’t be obstructed.

9. The buyer wants to make the sale contingent on their ability to have the property rezoned.


D. A Final Case Study To Consider…

Chad, an agent with Community Real Estate, was very excited to work with a new buyer that he had met at an open house. In order to be well prepared, he met Eric at the office to discuss the buying process and identify Eric’s housing needs. After talking with Eric and Eric’s lender, Chad realized that he would need to structure an offer with the seller paying the buyers’ closing costs.

After looking for a month, Eric found the “perfect” home. Chad wrote the offer with a purchase price to be $215,000, sale to include the washer, dryer, refrigerator. He also included a phrase on lines 85-86 of the Purchase and Sale Agreement that the “seller was to credit the buyer $5000 towards closing costs, pre-paids, and non-allowables including the title policy.” He submitted the offer to the seller’s agent Jane, at Get with it Realty, with a time limit of the next day at 5:00 p.m.

At 4:00 p.m. the next day, Chad received a counteroffer #1 from the seller, and it stated: “Sales price to be $220,000 with no credit towards closing costs.”

Chad called Eric and after careful consideration, countered immediately with the following: “Sales price to be $221,000.”

Chad emailed the last counter over to Jane. When she showed it to the seller, he was thrilled to see the higher sales price and checked that he accepted it. Jane then bound the contract and notified Chad that the deal was done.

During the inspection period, Chad and Jane were talking and it came up that the seller was paying closing costs. Jane said “Oh no, we countered that out of the deal.” Chad then shared that when he sent the last counter over with only the higher price, leaving off that the seller said no closing costs, all terms reverted to the original offer.

Was Chad correct in not restating the request for closings costs on his last counter?? What should Jane have done when she received Chad’s last counter to protect her seller? Who carries the liability for the Seller’s $5,000 loss?


Which Form Do I Use?

Issue Form Lead based paint was found and removed from the basement of a seller’s home

RF209 (LBP), RF201 (TRCPD)

The seller knows the roof has a minor leak.

RF201 (TRCPD)

The buyer has agreed to waive their right to the seller’s property disclosure.

RF204 (TRCPD Disclaimer)

The seller added a room to the read of the house without a permit.

RF201 (TRCPD), RF208 IF exceeds permit

The home has four bedrooms but the seller admits the septic permit only allows for three.

RF201 (TRCPD), RF208 Sewage Permit Disclosure

During periods of heavy rain, the backyard tends to have a great deal of standing water.

RF201 (TRCPD)

The home was previously treated for radon.

RF201 (TRCPD)

The seller just replaced the refrigerator, which is included in the sale.

RF401 (Offer to Purchase)

The seller’s home was previously treated twice for termite damage.

RF201 (TRCPD)

A neighbor’s fence encroached two feet onto the left side of the seller’s property but they have refused to move it.

RF201 (TRCPD)

The buyer is considering waiving their right to an inspection.

RF204 (RPC Disclaimer)

The seller’s property contains an exterior Injection well, which is in working order.

RF205 (Exterior Well Notification), F201 (TRPCD), RF203 (RPC Exemption) or RF204 (RPC Disclaimer)


Section V: Disclosures T.C.A. § 66-5-201; 202; 212; 213 1. When should the RF201 (Tennessee Residential Property Condition Disclosure Form) be provided to potential buyers for their exclusive use? 2. What protects the Real Estate Licensee from the representations of the seller on the Property Condition Disclosure Form? 3. When may the Property Disclaimer Statement be used allowing the seller to make no representations or warranties as to the condition of the property? 4. When listing a home that is rural or on a large tract of land that is not on sewer or water, what disclosures are required from the seller?


5. Are there any additional disclosures required for a property that is located in a PUD?


General Risk-Reduction Tips

• Be sure sellers understand the serious legal pitfalls of withholding material information about their home from prospective buyers.

• Never make statements that predict the future—”This property is sure to appreciate.” “You will never have any water problems here.” You open yourself up to charges of misrepresentation if your prediction is wrong.

• When in doubt as to whether a disclosure is required, go ahead and reveal whatever you know.

• When in doubt about anything concerning the property, say, “I don’t know.” Then investigate until you do.

• It is prudent to recommend that buyers consider a home inspection by a licensed home inspector or by an expert who is skilled in evaluating and diagnosing any specific property conditions that are of particular concern. Examples of such experts include a lead-based-paint or asbestos-testing company, a soil or structural engineer, or an architect.

• If the buyer declines your advice to obtain a recommended inspection or evaluation, make a note of that decision in your file, and send the buyer a note documenting the event.

• Recommend a thorough home inspection. Home inspectors are required to be licensed in Tennessee.

• Another “line of defense” is a home warranty purchased by or on behalf of the buyer. These policies are a form of inexpensive insurance that can protect the buyer and you if the buyer finds undetected or unknown defects after the sale closes and takes legal action.

—Some of the ideas in this section were adapted from “Just Say ‘I Don’t Know,’” by Robert N. Bass, Today’s Buyers’ Rep, March 1998. Mr. Bass, a Phoenix, Arizona broker defense attorney, can be reached at [email protected].

TIP #1:

TIP #2:

TIP #3:

TIP #4:


Section VI: Advertising Issues

Advertising as a Team (Licensees who hold themselves out as group or similar entity within a firm):

A HOT LINE QUESTION: “I am trying to find the section in the Official Manual of The Tennessee Real Estate Commission that deals with teams within a Real Estate company. Could you tell me where to find it?

Internet What information must be displayed on Internet websites? a. Agent’s name and phone number b. Company name and phone c. Current and accurate information d. Statement that some of the listings may not belong to the firm e. All of the above False, misleading or deceptive

1. Radio


2. Craigslist

3. Ad Offers & Guarantees

4. Pointer Signs


5. Signs and Billboards

If these signs were in Tennessee, would they be legal or not?

What problems do you see with this sign if it was advertising a company and agent in Tennessee?


6. “Car Wraps”

7. Web Pages

8. Violations of Regulation Z

9. Others? Gifts, Prizes, Offers – What Is Allowed and What Isn’t

According to Tenn. Code Ann. 62-13-302(b), “A real estate licensee shall not give or pay cash rebates, cash gifts or cash prizes in conjunction with any real estate transaction. As part of the Tennessee Real Estate Commission’s general rulemaking authority the commission may regulate the practices of real estate licensees in regard to gifts, prizes or rebates that are not otherwise prohibited by law.” Any refund or rebate of all or part of the commission to a buyer or seller would fall into this category. However, you can agree to reduce your commission.

You can give non-licensees a gift in order to induce them to do business with you. Please note that the gift must be as an inducement for THEM (not their friends, family members, etc., which would make it a referral fee) to do business with you. If you wish to proceed in doing this, you will have to follow the gifts and prizes rule. This falls under TREC Rule 1260-2-.33. It states:

Pursuant to the statute above, this gift CANNOT take the form of cash. You may give gift cards, but they cannot be convertible into cash. In addition, you cannot offer to pay closing costs for your client.


One final word of caution, TREC has rules (TREC Rule 1260-2-.12) which interprets the offers of gifts or prizes. It states: (5) Guarantees, Claims and Offers

(a) Unsubstantiated selling claims and misleading statements or inferences are strictly prohibited. (b) Any offer, guaranty, warranty or the like, made to induce an individual to enter into an agency relationship or contract, must be made in writing and must disclose all pertinent details on the face of such offer or advertisement.

Therefore, if you are advertising your gift, you will need to disclose all the pertinent details in the ad itself.


Section VII: Property Management Property Management has now become a new sideline in a lot of firms, especially for listings that simply haven’t sold in a long time.

A. A TAR Hot Line Inquiry…

QUESTION: I want to start a residential property management division in my company and I’m trying to find the necessary forms, etc., so that I can begin. Where should I look?

ANSWER: Property management is very different than regular residential sales.

B. Common Issues and Challenges…

1. People not knowing if the Landlord & Tenant Act applies to their area and not knowing what it is or how to work with it. 2. The first and most important thing for a property manager and owner to have is the Management Agreement. The agreement creates the general agency relationship between the owner and the property manager; it defines the duties and responsibilities of each party. 3. Proper handling of security deposits under requirements of the Landlord & Tenant Act.


4. The Property Manager should generate monthly reports showing income and expenses for each property.

5. Owners who can’t afford or are unwilling to maintain their property. 6. Owners who want to screen tenants with the agent.

7. The worst thing from a legal standpoint is eviction of a tenant.


Section VIII. Commercial Updates and Lease Terminology T.C.A. § 62-13-501-502 (2013) A Broker License and Affiliate Broker License as defined in T.C.A. § 62-13-102 allows a licensee to sell both Residential and Commercial Real Estate. However, the actual practices are very different. A licensee who practices mostly residential may have the opportunity to assist a buyer or a seller in a commercial transaction and should become familiar with T.C.A. §62-13-501 – 505. The best option may be for the Residential Licensee refer the buyer or seller to a Commercial Licensee and receive a referral fee. 1. What properties are considered Commercial? 2. How is the payment of commercial commissions different than residential commissions?


3. What happens to a Commercial commission or fee that was earned but not paid in full if the property is sold to a subsequent owner? a. Definition of 'Net Lease' A provision that requires the tenant to pay a portion or all of the taxes, fees and maintenance costs for the property in addition to rent. Net lease requirements are most commonly used with commercial real estate. There are three primary types of net leases: single (net), double (net-net) and triple (net-net-net). Also referred to as a closed-end lease. Property owners use net leases in order to shift the burden of managing taxes, insurance and fees to the tenant, and may charge less rent as a result. Though potential tenants may not have to pay as much rent they are still required to pay taxes and fees regardless of how well their business performs, making this an added risk. b. Triple Net Lease A lease agreement that designates the lessee (the tenant) as being solely responsible for all of the costs relating to the asset being leased in addition to the rent fee applied under the lease. The structure of this type of lease requires the lessee to pay for net real estate taxes on the leased asset, net building insurance and net common area maintenance. The lessee has to pay the net amount of three types of costs, which how this term go its name. This type of lease can also be referred to as a “net-net-net lease” or a hell or high water lease.” For example, if a property owner leases out a building to a business using a triple net lease, the tenant will be responsible for paying the building’s property taxes, building insurance and the cost of any maintenance or repairs the building may require during the term of the lease.


Because the tenant is covering these costs (which would otherwise be the responsibility of the property owner), the rent charged in the triple net lease is generally lower than the rent charged in a standard lease agreement. c. Gross Lease A type of commercial lease where the landlord pays for the building property taxes, insurance and maintenance. A gross lease can be modified in a number of ways to best meet the needs of a particular building’s tenants (for example, a gross lease may or may not require the tenant to pay utility bills). Modified Gross Lease A type of real estate rental agreement where the tenant pays base rent at the lease’s inception but in subsequent years pays the base plus a proportional share of some of the other costs associated with the property, such as property taxes, utilities, insurance and maintenance. For example, under a modified lease, a property’s tenants might be required to pay their proportional share of an office tower’s heating expense. A modified gross lease falls somewhere between a gross lease and a net lease. Which expenses the tenant is responsible for can vary significantly from property to property, so a prospective tenant must ensure that a modified gross lease clearly defines which expenses are the tenant’s responsibilities. d. CAM – Chartered Asset Manager A professional designation offered by the American Academy of Financial Management (AAFM). The prerequisites for the Chartered Asset Manager (CAM) program are three years or more of financial planning experience in asset management and financial planning, and an AAFM-approved degree or other approved program. The AAFM is a worldwide institution that offers candidates certification to improve their knowledge and credentials in financial management. Definitions: investopedia.com


APPENDICES

TREC Law and Rule Changes Effective 2013 -2014

62-13-112. ERRORS AND OMISSIONS INSURANCE was amended to include the following: (j) (1) If a licensee fails to obtain, maintain or renew the licensee's errors and omissions insurance which meets or exceeds the minimum requirements established by the commission and provide proof of compliance to the commission if such proof is required by subsection (g), then the licensee's license shall be suspended. (2) The commission shall send notification of the license suspension by regular mail: (A) To the licensee at the last known business address and home address of the licensee as registered with the commission; and (B) To the licensee's broker at the broker's address as registered with the commission. (3) While a license is suspended pursuant to this section, the licensee shall not engage in activities which require a license under this chapter, nor will the license be renewed or a new license issued. Any license suspended pursuant to this section shall remain suspended until the licensee establishes, to the satisfaction of the commission, compliance with this section. (4) The licensee may, upon written notice to the commission, request a formal hearing on any license suspended pursuant to this section. (k) (1) A license suspended pursuant to this section shall be reinstated if, within thirty (30) days of suspension, the licensee provides proof of insurance that complies with the required terms and conditions of coverage to the commission without the payment of any fee. (2) A license suspended pursuant to this section shall be reinstated if, on or after thirty-one (31) days of suspension, the licensee provides proof of insurance that complies with the required terms and conditions of coverage to the commission and the licensee pays: (A) For a license suspended more than thirty (30) days but less than one hundred twenty (120) days, a penalty fee of not more than five hundred dollars ($500); or (B) For a license suspended for more than one hundred twenty (120) days but less than one (1) year, a penalty fee of five hundred dollars ($500), plus an additional penalty fee of not more than one hundred dollars ($100) per month for months six through twelve (6-12). (l) (1) A license suspended more than one (1) year pursuant to this section shall be automatically revoked without any further action by the commission. (2) The commission shall send notification of the license revocation by regular mail:


(A) To the licensee at the last known business address and home address of the licensee as registered with the commission; and (B) To the licensee's broker at the broker's address as registered with the commission. (3) The licensee may, upon written notice to the commission, request a formal hearing on any license revoked pursuant to this section. (4) Upon revocation of license, any individual seeking reissuance of such license shall reapply for licensure and pay the penalty fees in subsection (k); provided, however, that the commission may, in its discretion: (A) Waive reexamination or additional education requirements for such an applicant; or (B) Reinstate a license subject to the applicant's compliance with such reasonable conditions as the commission may prescribe, including, but not limited to, payment of a penalty fee, in addition to the penalty fee provided in subdivision (k)(2)(B), of not more than one hundred dollars ($100) per month, or any portion thereof, from the time of revocation. (m) Notwithstanding subsections (k) and (l), if the licensee proves to the commission that the license suspension or revocation pursuant to subsections (k) or (l) was in error and that the licensee obtained, maintained or renewed the licensee's errors and omissions insurance as required by this section, then the commission shall immediately reinstate the license to the date of suspension. July 1, 2013 1260-01-.16 Lapsed Errors and Omissions Insurance Licensees Who Fail to Maintain Errors & Omissions (E&O) Insurance

1. (a) Penalty fees for Reinstatement of a Suspended License: Any licensee whose license is suspended for more than thirty (30) days pursuant to T.C.A. § 62-13-112 for failure to maintain E&O insurance must provide proof of insurance that complies with the required terms and conditions of coverage to the Commission and must pay the following applicable penalty fee in order to reinstate the license:

1. For a license suspended due to a lapse in E&O coverage for more than thirty (30) days but within one hundred twenty (120) days:

1. (i) Two Hundred Dollars ($200.00) if the licensee’s insurance carrier backdated the licensee’s E&O insurance policy to indicate continuous coverage; or 2. (ii) Four Hundred Dollars ($400.00) if the licensee’s insurance carrier did not back-date the licensee’s E&O insurance policy to indicate continuous coverage.

1. For a license suspended due to a lapse in E&O coverage for more than one hundred twenty (120) days but less than six (6) months, a Five Hundred Dollar ($500.00) penalty fee;


2. For a license suspended due to a lapse in E&O coverage for six (6) months up to one (1) year, a Five Hundred Dollar ($500.00) penalty fee plus a penalty fee of One Hundred Dollars ($100.00) per month, or portion thereof, for months six (6) through twelve (12).

2. (b) Conditions for Reissuance of a Revoked License: Upon revocation of a license pursuant to T.C.A. § 62-13-112 for failure to maintain E&O insurance, any individual seeking reissuance of such license shall:

1. Reapply for licensure, including payment of all fees for such application; 2. Pay the penalty fees outlined in subparagraph (a) above; 3. Pass all required examinations for licensure, unless the Commission waives such examinations; and 4. Meet any current education requirements for licensure, unless the Commission waives such education requirements.

Principal Brokers of Licensees Who Fail to Maintain E&O Insurance: (a) A principal broker shall ensure, at all times, that all licensees affiliated with that principal broker shall hold E&O insurance as required by law. A failure to do so shall constitute failing to exercise adequate supervision over the activities of a licensed affiliated broker. (b) For any principal broker who has an affiliated licensee whose license is suspended pursuant to T.C.A. § 62-13-112 for failure to maintain E&O insurance, there shall be no penalty to the principal broker if either of the following two (2) circumstances occur within thirty (30) days of that affiliated licensee’s license suspension:

1. The affiliated licensee has provided proof of insurance which complies with the required terms and conditions of coverage to the Commission; or 2. The principal broker releases that affiliated licensee whose license is suspended for failure to maintain E&O insurance. 3. (c) After the aforementioned thirty (30) day period, if the affiliated licensee has neither provided the required proof of insurance nor been released by the principal broker, the Commission authorizes a formal hearing on the matter of the principal broker’s failure to exercise adequate supervision over an affiliated licensee who failed to maintain E&O insurance but also authorizes that a consent order shall be sent to the principal broker, offering that principal broker the opportunity to settle the matter informally, thereby making formal hearing proceedings unnecessary, according to the following schedule: 4. Notwithstanding the provisions of Tenn. Comp. R. & Regs. 1260-02-.32, if the principal broker’s affiliated licensee reinstates his or her license, or the principal broker releases the affiliated licensee, more than thirty (30) days after suspension but within one hundred twenty (120) days after suspension, the consent order shall contain the following civil penalties:

1. (i) Two Hundred Dollars ($200.00) if the affiliated licensee’s insurance carrier back-dated the licensee’s E&O insurance policy to indicate continuous coverage; or


2. (ii) Four Hundred Dollars ($400.00) if the affiliated licensee’s insurance carrier did not back-date the licensee’s E&O insurance policy to indicate continuous coverage. If the principal broker’s affiliated licensee reinstates his or her license, or the principal broker releases the affiliated licensee, more than one hundred twenty (120) days after suspension, the consent order referenced in this subparagraph (c) above shall contain a civil penalty of Five Hundred Dollars ($500.00). 3. Where a principal broker does not accept any authorized consent order for failure to supervise an affiliated licensee’s E&O insurance, the hearing shall be held before an administrative law judge sitting alone, pursuant to the Uniform Administrative Procedures Act, compiled at title 4, chapter 5.

5. Nothing in this rule shall be construed as limiting the Commission’s authority to:

1. Authorize a consent order in a different amount than listed herein; 2. Seek any other legal discipline – including revocation or suspension of a license – for a failure to supervise an affiliated licensee’s E&O insurance; 3. Review an initial order under the Uniform Administrative Procedures Act; or 4. Not seek discipline against a principal broker for failure to supervise an affiliated broker’s maintenance of E&O insurance if the Commission determines that such discipline is not appropriate under the facts of that matter. May, 2014 (Revised)

1260-1-.15 ERRORS AND OMISSIONS INSURANCE COVERAGE It shall be a requirement for an active licensee to carry errors and omissions insurance to cover all activities contemplated under the Tennessee Real Estate Broker License Act unless the Commission is unable to obtain coverage pursuant to T.C.A. §62-13-112(g) which would void the requirement of coverage under the applicable contract period. (1) A licensee who places his license in an inactive or retired status is not required to carry errors and omissions insurance until such time as his license is activated. (2) New licensees, licensees who activate their license from an inactive or retired status, and licensees who reinstate their license from an expired status at a time other than the beginning of the licensing period shall pay a prorated premium in accordance with a schedule provided by the insurance provider. (3) The Commission shall perform random audits to assure that licensees have met the requirements of this rule. (4) Any independently obtained errors and omissions insurance policy shall, at a minimum, be issued upon the same terms and conditions as the policy obtained by the Tennessee Real Estate Commission pursuant to T.C.A. § 62-13-112, including, but not limited to, the limits


of coverage, the permissible deductible, the permissible exemptions and the term of the policy. Errors and Omissions Coverage Implications When Listing or Selling Your Own Property Prepared by Rice Insurance Services Company, LLC June 19, 2013 Many real estate errors and omissions (E&O) policies exclude coverage for claims involving property owned by the insured or someone connected to the insured. Historically, the Tennessee Real Estate Commission’s (TREC's) E & O group policy excluded coverage for claims relating to property in which any of the following had more than a 25% interest: an insured, insured’s spouse; or any entity, partnership, or trust in which the insured or insured’s spouse owned or controlled more than a 25% ownership or financial interest. The reason for this fairly standard exclusion is that the owner of the property may benefit from any negligence in the property’s listing and sale. For example, a claim was made under TREC’s group policy against a licensee who sold property she owned. The buyers alleged misrepresentation of the condition of the fireplace, plumbing, and electrical system. As the seller of the property, the licensee benefited by receiving a higher price than the buyer believed was justified, given the true condition of the property. However, because many licensee list and sell their own homes, the TREC’s group policy now automatically included an endorsement that makes the policy apply to the sale or listing of the licensee’s primary residence (a residential property of 2 units or less, which serves as the licensee’s principal residence), provided the following conditions are met:

1. prior to closing, a written home inspection was ordered and a copy provided to the buyer; 2. prior to closing, if required by law, a seller disclosure form was signed by the licensee and the buyer; 3. prior to closing, the licensee’s ownership interest was disclosed and acknowledged by the buyer; 4. a state or local board approved sales contract was used; and 5. the sale or listing is performed under and subject to the real estate license laws of Tennessee.

Additionally, licensees who purchase insurance through the TREC’s group policy can also purchase an optional endorsement that make the policy apply to the sale or listing of residential property (a single family residence or multi-family residences with 4 units or less) owned by the licensee: the licensee’s spouse; or a entity, corporation, partnership or trust owned or controlled by the licensee or his/her spouse. The following conditions must be satisfied for the optional personal interest endorsement to apply:

1. the residential property was owned for at least one hundred eighty (180) days by the licensee, the licensee’s spouse, or any entity, corporation,


partnership, or trust in which the licensee or licensee’s spouse has or had a financial or ownership interest; 2. the property was not constructed or developed by the licensee; the licensee’s spouse; or any entity, corporation, partnership, or trust in which the licensee or licensee’s spouse has or had a financial or ownership interest; 3. prior to closing, a home warranty was purchased by or for the buyer; 4. prior to closing, if required by law, a seller disclosure form was signed by the buyer; 5. prior to closing, the ownership or financial interest of the licensee and licensee’s spouse in the residential property was disclosed to and acknowledged by the buyer; 6. a licensed inspector who was not related to or affiliated with the licensee issued a written home inspection report that the buyer acknowledged prior to closing; 7. a state or local board approved standard sales contract was used; 8. the sale or listing was performed under and subject to applicable real estate license law; and 9. prior to the effective date of this endorsement, no insured had a basis to believe that any negligent act, error or omission, r related negligent act, error, or omission might reasonably be expected to be the basis of a claim against the insured.

The TREC’s group policy does not provide coverage for property developed or constructed by any of the following: an insured; insured’s spouse; or any entity, partnership, or trust in which the insured or insured’s spouse is not impacted by the automatic primary residence endorsement or the optional residential personal interest endorsement. Licensees who develop or construct (or who have a spouse or entity that develops or constructs property) may be interested in purchasing insurance that applies to their development and construction activities, as these are unlikely to be covered under their real estate licensee E & O insurance. Residential Personal Interest Coverage Endorsement - $50.00. Appraisal Endorsement - $180.00. Property Management Endorsement - $100.00. 62-13-303. Qualifications -- Prerequisites for licensing. Effective on January 1, 2014 is amended by adding: (l) (1) The commission shall require all applicants for initial licensure issued under this chapter, including, but not limited to, a time-share license, on or after January 1, 2014, to submit a complete and legible set of fingerprints on a form prescribed by the commission or in such electronic format as the commission may require, to the commission or to the Tennessee Bureau of Investigation for the purpose of obtaining a criminal background check from the Tennessee Bureau of Investigation and the Federal Bureau of Investigation. (2) The commission shall refuse to issue a license to an applicant for initial licensure who does not comply with subdivision (l)(1); provided, that a licensee who requests to renew an


existing license issued under this chapter, or obtain a broker license after being licensed as an affiliate broker, shall not be required to submit a set of fingerprints pursuant to this subsection (l). (3) The commission shall conduct a criminal background check of each applicant described in subdivision (l)(1) by using information: (A) Provided by the applicant under this subsection (l); and (B) Made available to the commission by the Tennessee bureau of investigation, the federal bureau of investigation and any other criminal justice agency. (4) The commission may: (A) Enter into an agreement with the Tennessee bureau of investigation to administer a criminal background check required under this subsection (l); and (B) Authorize the Tennessee bureau of investigation to collect from the applicant the costs incurred by the department in conducting the criminal background check. 1260-01-17 Fingerprinting

1. Any initial applicant who is required to submit a complete and legible set of fingerprints for the purpose of obtaining a criminal background check pursuant to T.C.A. § 62-13-303 shall submit said fingerprints in an electronic format.

1. An initial applicant shall be deemed to have supplied the required set of fingerprints if that applicant causes a private company contracted by the State to electronically transmit that applicant’s classifiable prints directly to the TBI and FBI to forward an electronic report based on that applicant’s fingerprints to the Commission. 2. All sets of classifiable fingerprints required by this rule shall be furnished at the expense of the applicant. 3. The applicant shall make the arrangements for the processing of his or her fingerprints with the company contracted by the State to provide electronic fingerprinting services directly and shall be responsible for the payment of any fees associated with processing of fingerprints to the respective agent authorized by the TBI and FBI. 4. Applicants shall in all cases be responsible for paying application fees for licensure as established by the Commission. 5. In addition to new applicants for a broker, affiliate broker, time-share salesperson, or acquisition agent license, the following are considered “initial applicants” for purposes of this rule and, therefore, are required to submit fingerprints in an electronic format for the purpose of obtaining a criminal background check:

1. Any former licensee who must reapply in order to obtain reissuance of his or her license; and


2. Any person who previously held an affiliate broker license but no longer holds said license at the time such person applies for a broker license. This does not include any person who has an affiliate broker license which is inactive or retired at the time of application for a broker license.

2. In the event that an applicant furnishes unclassifiable fingerprints or fingerprints which are unclassifiable in nature, the Commission may refuse to issue the requested license.

1. For the purposes of this rule, “unclassifiable prints” means that the electronic scan or the print of the person’s fingerprints cannot be read, and therefore cannot be used to identify the person. 2. Should an applicant’s fingerprints be rejected by the TBI or FBI, the applicant shall pay any fees assessed by the TBI or FBI for resubmission.

Advertising Interpretation- July 2013 the Commissioners interpreted TCA 62-13-310(b) “Licensees may not post signs on any property advertising themselves as real estate as real estate agents unless the firm’s name appears thereon in letters the same size or larger than those spelling out the name of the licensee” as the agent name cannot be any larger than the smallest font of the company name on any sign which is on property (including billboards). This includes signs advertising agents, but not specific property. TREC Discipline December 2013: It is a clear violation to advertise – in print OR online OR in signage – under a “team” name without also giving your firm name and the firm’s telephone number. Policy on Online Transfers of Firm Affiliation: 2013 CPS-001 The Commission with the assistance of the Department of Commerce and Insurance has developed an address to process online transfers: https://apps.tn.gov/ciupdates. (3) When a licensee terminates his affiliation with a firm, he shall neither take nor use any property listings secured through the firm, unless specifically authorized by the principal broker. (4) Upon demand by a licensee for his release from a firm, it shall be promptly granted by the principal broker and the principal broker shall return the license to the licensee. If the licensee cannot be located then the principal broker may return the license to the Commission. (5) If the principal broker is deceased or physically unable to sign the release, or refuses to sign a release, the licensee requesting termination of affiliation must submit to the Commission a notarized Affidavit for Release. (6) If the affiliated licensee is deceased or physically unable to sign a release, or refuses to sign a release, the principal broker requesting termination of affiliation must submit to the Commission a completed TREC Form 1.


1260-02-.38 DEATH OR EXTENDED ABSENCE OF PRINCIPAL BROKER (1) The Commission must be notified within ten (10) days of the death, resignation, termination or incapacity of a principal broker. In the event of an unexplained extended absence of a principal broker, the Commission must be notified within a reasonable time period. At the time of notification, a plan must be submitted which addresses the continuation of operations without a principal broker. (2) The Commission may, in its discretion, based on the merits and circumstances of each case, permit a real estate firm to continue operating without a principal broker for a period of time not to exceed thirty (30) days from the date of death, resignation, termination, or incapacity of a principal broker, subject to conditions imposed by the Commission. (3) If, within the aforementioned thirty (30) day period, a real estate firm contacts the Commission demonstrating compliance with their initial approved plan and circumstances which require additional time to continue operating without a principal broker, the executive director shall have the authority to grant a thirty (30) day extension to the period originally allowed by the Commission. In the event that a thirty (30) day extension is granted, a new principal broker must be in place no later than the sixty-first (61st) day from the date of death, resignation, termination, or incapacity of a principal broker.

Effective March 3, 2013.

Policy Statement 2013-CPS-002 REINSTATEMENT OF AN EXPIRED LICENSE The Tennessee Real Estate Commission adopts this policy for the renewal of a license more than sixty (60) days after expiration date of the license, as authorized by TCA 62-13-319. Requirements for Reinstatement: 1. Expired License due to Health or Medical Problems If a licensee fails to renew a license because of personal or family health issues, that licensee must provide a signed doctor’s statement attesting to the nature ad length of the illness. The licensee must also submit a statement explaining the lapse. This personal statement must be signed by the person seeking reinstatement. Renewal fees must be paid but late fees will not be assessed. Information submitted will become public record unless prohibited by law. 2. Expired License due to Failure to Comply with Prerequisite to Licensure: Continuing Education, Errors and Omissions Insurance, Renewal Fees If a licensee fails to obtain sixteen (16) hours of continuing education within the renewal period, fails to maintain or provide proof of Errors and Omissions Insurance, or fails to pay a renewal fee before the expiration of the license must sign a Consent Order Agreeing to comply with the following requirements:

1. Provide proof of compliance with all prerequisites or conditions, including payment of the renewal fee; 2. Penalties:

a) For a license expired more than sixty (60) days, but less than one hundred twenty (120); Pay a penalty fee of fifty dollars ($50.00) per 30-day period, or portion thereof, from the time the license expires;


b) For a license expired more than one hundred twenty (120) days but less than one (1) year; Pay an additional penalty fee of one hundred fifty dollars ($150.00) per 30-day period, or portion thereof, beginning on the one hundred twenty-first (121st) day; and

3. Conditions: a) Attend one (1) regularly scheduled two-day meeting of the Tennessee Real Estate Commission within six (6) moths of the date of the Consent Order. Licensees will receive eight (8) hours of continuing education credit for attending this meeting; OR b) In lieu of attending a meeting, pay a civil penalty of seven hundred fifty dollars ($750.00), to be paid within thirty (30) days of the date of the Consent Order. If the licensee seeking reinstatement executes a Consent Order but fails to complete any one of the requirements, an additional civil penalty of two thousand five hundred dollars ($2,500.00) will be assessed. Penalties and fees accrue until all requirements are met. Penalty fees will begin accruing on the first day following the license expiration date and will be issued upon satisfaction of all requirements.

3. License Expired More than One (1) Year A licensee seeking reinstatement of a license expired more than one (1) year must reapply for licensure, meet current education requirements and pass all required examinations. Effective April 4, 2013. Commission Policy Statement Number 2012-CPS-004 The Tennessee Real Estate Commission’s position on interest-bearing escrow accounts is that they are neither required nor prohibited. If used, however, the following guidelines shall be observed by all licensees except vacation lodging services: 1. The licensee shall disclose to the payor that his deposit will be placed in an interest bearing account; 2. As a depositor of the funds, the licensee does not own the funds or interest earned thereon until properly disbursed to the licensee; 3. The licensee and payor shall execute a written agreement indicating the manner of disposition of interest earned; and 4. The licensee shall keep a detailed and accurate accounting of the precise sum of the interest earned for each separate deposit.


COMMISSION POLICY STATEMENT NUMBER 2012-CPS-001 EFFECTIVE DATE MARCH 7, 2012 POLICY ON INTERNET ADVERTISING Application of Tennessee Real Estate Commission Rule 1260-02.12 (4)(c), which requires that listing information be kept current and accurate, applies to “First Generation” advertising as it is placed by the licensee and does not refer to such advertising that may be syndicated advertising of the original, which is done by third parties outside of the licensee’s control and ability to monitor.


21 Ways To Lose Your License

62-13-310. Affiliate broker relationship to broker. (a) Whenever the contractual relationship between a broker and affiliate broker is terminated, the present broker shall immediately sign and date the change of affiliation form prescribed by the commission. The affiliate broker may act under a contract with another broker upon completion and transmittal to the commission of such form, accompanied by the fee established pursuant to § 62-13-308. Such affiliate broker shall assure that the completed form and fee are promptly transmitted, and that the affiliate broker’s license is prominently displayed in the new broker’s principal place of business. (b) Licensees may not post signs on any property advertising themselves as real estate agents unless the firm’s name appears thereon in letters the same size or larger than those spelling out the name of the licensee.

(c) Any unlawful act or violation of any of the provisions of this chapter by any affiliate broker may not be cause for the suspension or revocation of the license of the broker with whom the affiliate broker is affiliated. [Acts 1973, ch. 181, §§ 12(c), (e), 16(b); 1981, ch. 473, §§ 10, 11; T.C.A., § 62-1324; Acts 1982, ch. 864, § 8; 1990, ch. 946, § 5.]

62-13-311. Revocation of license by court — Reinstatement.

Whenever any person, partnership, association, company, firm or corporation claiming to have been injured or damaged by the gross negligence, incompetency, fraud, dishonesty or misconduct on the part of any licensee following the calling or engaging in the business herein described, files suit upon such claim against such licensee in any court of record in this state and recovers judgment thereon, such court may as part of its judgment or decree in such cases, if it deem it a proper case in which so to do, revoke the certificate of license granted hereunder, and such certificate of license shall not be reissued to such licensee except upon the consenting vote of six (6) of the members of the commission in favor of such reissuance. [Acts 1973, ch. 181, § 15; T.C.A., § 62-1325; Acts 1982, ch. 864, § 9.]

62-13-312. Discipline — Refusal, revocation or suspension of license — Downgrading of licenses — Automatic revocation.

(a) The commission may, upon its own motion, and shall, upon the verified complaint in writing of any person setting forth a cause of action under this section, ascertain the facts and, if warranted, hold a hearing for reprimand, or for the suspension or revocation of a license.

(b) The commission shall have power to refuse a license for cause or to suspend or revoke a license where it has been obtained by false representation, or by fraudulent act or conduct, or where a licensee, in performing or attempting to perform any of the acts mentioned herein, is found guilty of:

(1) Making any substantial and willful misrepresentation;


(2) Making any promise of a character likely to influence, persuade or induce any person to enter into any contract or agreement when the licensee could not or did not intend to keep such promise; (3) Pursuing a continued and flagrant course of misrepresentation or making of false promises through affiliate brokers, other persons, or any medium of advertising, or otherwise; (4) Misleading or untruthful advertising, including use of the term ‘‘Realtor’’ by a person not authorized to do so, or using any other trade name or insignia or membership in any real estate association or organization, of which the licensee is not a member; (5) Failing, within a reasonable time, to account for or to remit any moneys coming into the licensee’s possession which belong to others; (6) Failing to preserve for three (3) years following its consummation records relating to any real estate transaction; (7) Acting for more than one (1) party in a transaction without the knowledge and consent in writing of all parties for whom the licensee acts; (8) Failing to furnish a copy of any listing, sale, lease, or other contract relevant to a real estate transaction to all signatories thereof at the time of execution; (9) Using or promoting the use of any real estate listing agreement form, real estate sales contract form, or offer to purchase real estate form which fails to specify a definite termination date;

(10) Inducing any party to a contract, sale or lease to break such contract for the purpose of substitution in lieu thereof a new contract, where such substitution is malicious or is motivated by the personal gain of the licensee; (11) Accepting a commission or any valuable consideration by an affiliate broker for the performance of any acts specified in this chapter, from any person, except the licensed real estate broker with whom the licensee is affiliated; (12) Being convicted in a court of competent jurisdiction of this or any other state, or federal court, of forgery, embezzlement, obtaining money under false pretenses, bribery, larceny, extortion, conspiracy to defraud, or any crime or any similar offense or offenses, or pleading guilty or nolo contendere to any such offense or offenses; (13) Violating any federal, state, or municipal law prohibiting discrimination in the sale or rental of real estate because of race, color, religion, sex or national origin;

(14) Violating any provision of this chapter, any rule duly promulgated and adopted thereunder, or the terms of any lawful order entered by the commission;


(15) In the case of a licensee, failing to exercise adequate supervision over the activities of any licensed affiliate brokers within the scope of this chapter;

(16) In the case of a licensee, failing within a reasonable time to complete such administrative measures as may be required by the commission upon the transfer or termination of any affiliate broker employed by the broker; (17) Paying or accepting, giving or charging any undisclosed commission, rebate, compensation or profit or expenditures for a principal, or in violation of this chapter;

(18) Failing to disclose to an owner the licensee’s intention or true position if the licensee, directly or indirectly through a third party, purchases for itself or acquires or intends to acquire any interest in or any option to purchase property which has been listed with the licensee’s office to sell or lease; (19) Engaging in the unauthorized practice of law; (20) Any conduct, whether of the same or a different character from that hereinbefore specified, which constitutes improper, fraudulent or dishonest dealing; or

(21) Violating any provision of the Tennessee Time-Share Act, compiled in title 66, chapter 32, part 1, or any rule duly promulgated thereunder.

(c) The commission may, in addition to or in lieu of any other lawful disciplinary action against a broker pursuant to this section, order that such broker be downgraded to “affiliate broker” status. (d) The director of the division of regulatory boards or the director’s duly authorized representatives may, at all reasonable hours, examine and copy such books, accounts, documents, or records as are relevant to a determination of whether a licensee has properly maintained and disbursed funds from escrow or trustee accounts required hereunder. In case of refusal to permit the access accorded by this subsection, the director or the director’s authorized representatives may pursue the remedies provided by § 4-5- 311(b) for disobedience to any lawful agency requirement for information. Such refusal shall also constitute grounds for the commission to suspend or revoke a license. (e) The sole purpose of this section is to provide guidelines for disciplinary actions taken by the Tennessee real estate commission against licensees found guilty of the violations listed herein.

(f) Whenever any licensee pleads guilty or is convicted of any offense enumerated in this chapter, the licensee must within sixty (60) days notify the commission of that conviction and provide the commission with certified copies of the conviction. The licensee’s license shall automatically be revoked sixty (60) days after the licensee’s conviction unless the licensee makes a written request to the commission for a hearing during that sixty-day period. Following any such hearing held pursuant to this section, the commission in its discretion may impose upon that licensee any sanction permitted by this chapter.


(g) Whenever the commission revokes or suspends the license of a salesperson, an affiliate broker, or a broker, then any school or instructor approval which the licensee holds shall also be revoked. Whenever a licensee surrenders a real estate license, any school or instructor approval which such licensee holds shall also be revoked. [Acts 1973, ch. 181,

§ 14; 1981, ch. 372, § 33; 1981, ch. 473, § 12; T.C.A., § 62-1326; Acts 1984, ch. 810, §4; 1986, ch. 893, § 1; 1988, ch. 919, §§ 7-9; 1990, ch. 946, §§ 6, 7; 1994, ch. 595, § 1.]

Copyright 2013 © Tennessee Association of Realtors® Version 01/01/2015

RF 301 – Working with a Real Estate Professional , Page 1 of 2

TENNESSEEASSOCIATIONOF REALTORS®

Copyright 2013 © Tennessee Association of Realtors® Version 01/01/2015TENNESSEE

This form is copyrighted and may only be used in real estate transactions in which ___________________ ________________________ is involved as a TAR authorized user. Unauthorized use of the form may result in legal sanctions being brought against the user and should be reported to the Tennessee Association of Realtors ® at (615) 321-1477.

WORKING WITH A REAL ESTATE PROFESSIONAL Pursuant to the Tennessee Real Estate Broker License Act, every Real Estate Licensee owes the following duties to 1 every Buyer and Seller, Tenant and Landlord (collectively “Buyers” and “Sellers”): 2

1. To diligently exercise reasonable skill and care in providing services to all parties to the transaction;3

2. To disclose to each party to the transaction any Adverse Facts of which Licensee has actual notice or knowledge;4

3. To maintain for each party in a transaction the confidentiality of any information obtained by a Licensee prior to5 disclosure to all parties of a written agency agreement entered into by the Licensee to represent either or both parties 6 in the transaction. This duty of confidentiality extends to any information which the party would reasonably expect7 to be held in confidence, except for any information required by law to be disclosed; 8

4. To provide services to each party to the transaction with honesty and good faith; 9

5. To disclose to each party to the transaction timely and accurate information regarding market conditions that might10 affect such transaction only when such information is available through public records and when such information is11 requested by a party;12

6. To give timely account for earnest money deposits and all other property received from any party to a transaction;13 and14

7. A) To refrain from engaging in self-dealing or acting on behalf of Licensee’s immediate family, or on behalf of any 15 other individual, organization or business entity in which Licensee has a personal interest without prior disclosure of 16 such personal interest and the timely written consent of all parties to the transaction; and17

B) To refrain from recommending to any party to the transaction the use of services of another individual,18 organization or business entity in which the Licensee has an interest or from whom the Licensee may receive a 19 referral fee or other compensation for the referral, other than referrals to other Licensees to provide real estate20 services, without timely disclosure to the party who receives the referral, the Licensee’s interest in such a referral or 21 the fact that a referral fee may be received. 22

In addition to the above, the Licensee has the following duties to his/her Client if the Licensee has become an Agent or 23 Designated Agent in a transaction: 24

8. Obey all lawful instructions of the client when such instructions are within the scope of the agency agreement25 between the Licensee and Licensee’s client; 26

9. Be loyal to the interests of the client. Licensee must place the interests of the client before all others in negotiation27 of a transaction and in other activities, except where such loyalty/duty would violate Licensee’s duties to a customer 28 in the transaction; and 29

10. Unless the following duties are specifically and individually waived in writing by a client, Licensee shall assist the30 client by: 31

A) Scheduling all property showings on behalf of the client;32

B) Receiving all offers and counter offers and forwarding them promptly to the client;33

C) Answering any questions that the client may have in negotiation of a successful purchase agreement within34 the scope of the Licensee’s expertise; and 35

D) Advising the client as to whatever forms, procedures and steps are needed after execution of the purchase36 agreement for a successful closing of the transaction. 37

Upon waiver of any of the above duties contained in 10. above, a consumer must be advised in writing by such 38 consumer’s agent that the consumer may not expect or seek assistance from any other licensees in the transaction for 39 the performance of said duties. 40 DRAFT Obey all lawful instructions of the client when such instructions are within the scope

DRAFT Obey all lawful instructions of the client when such instructions are within the scopeensee and Licensee’s client;

DRAFT ensee and Licensee’s client; Be loyal to the interests of the client. Licensee must place the interests of the client before all others in negotiation

DRAFT Be loyal to the interests of the client. Licensee must place the interests of the client before all others in negotiation of a transaction and in other activities, except where such

DRAFT of a transaction and in other activities, except where such in the transaction; and

DRAFT in the transaction; andUnless the following duties are specifically and individually waived in writing by a client, Licensee shall assist the

DRAFT Unless the following duties are specifically and individually waived in writing by a client, Licensee shall assist the client by:

DRAFT client by:

A)

DRAFT A) Scheduling all property showings on

DRAFT Scheduling all property showings on

B)

DRAFT B) Receiving all offers and co

DRAFT Receiving all offers and co

C)

DRAFT C) Answering any questions that the client may have in neg

DRAFT Answering any questions that the client may have in negthe scope of the Licensee’s expertise;

DRAFT the scope of the Licensee’s expertise;

D)

DRAFT D) Advising the client as to whatever forms, procedures and steps are needed after execution of the purchase

DRAFT Advising the client as to whatever forms, procedures and steps are needed after execution of the purchase agreement for a successful closing of the transaction.DRAFT

agreement for a successful closing of the transaction.

Upon waiver of any of the above dutiesDRAFT

Upon waiver of any of the above dutiesconsumer’s agent that the consumer may not expect or seek assistance from any other licensees in the transaction for DRAFT

consumer’s agent that the consumer may not expect or seek assistance from any other licensees in the transaction for

SPECIMEN

owes the following duties to

SPECIMEN

owes the following duties to

To diligently exercise reasonable skill and care in providing services to all parties to the transaction;

SPECIMENTo diligently exercise reasonable skill and care in providing services to all parties to the transaction;

Adverse Facts of which Licensee has actual notice or knowledge;

SPECIMENAdverse Facts of which Licensee has actual notice or knowledge;

To maintain for each party in a transaction the confidentiality of any information obtained by a Licensee prior to

SPECIMENTo maintain for each party in a transaction the confidentiality of any information obtained by a Licensee prior to

y the Licensee to represent either or both parties

SPECIMENy the Licensee to represent either or both parties

in the transaction. This duty of confidentiality extends to any information which the party would reasonably expect

SPECIMEN

in the transaction. This duty of confidentiality extends to any information which the party would reasonably expect d;

SPECIMEN

d;To provide services to each party to the transaction with honesty and good faith;

SPECIMEN

To provide services to each party to the transaction with honesty and good faith;ty to the transaction timely and accurate information regarding market conditions that might

SPECIMEN

ty to the transaction timely and accurate information regarding market conditions that might vailable through public records and when such information is

SPECIMEN

vailable through public records and when such information is

To give timely account for earnest money deposits and all other property received from any party to a transaction;

SPECIMEN

To give timely account for earnest money deposits and all other property received from any party to a transaction;

ng on behalf of Licensee’s immediate family, or on behalf of any

SPECIMEN

ng on behalf of Licensee’s immediate family, or on behalf of any other individual, organization or business entity in which Licensee has a personal interest without prior disclosure of

SPECIMEN

other individual, organization or business entity in which Licensee has a personal interest without prior disclosure of such personal interest and the timely written consent of all parties to

SPECIMEN

such personal interest and the timely written consent of all parties to the transaction; and

SPECIMEN

the transaction; andTo refrain from recommending to any party to the transaction the use of

SPECIMEN

To refrain from recommending to any party to the transaction the use of organization or business entity in which the Licensee has an interest or from whom the Licensee may receive a

SPECIMEN

organization or business entity in which the Licensee has an interest or from whom the Licensee may receive a ther compensation for the referral, other than referrals to

SPECIMEN

ther compensation for the referral, other than referrals to services, without timely disclosure to the party who receives the referral, the Licensee

SPECIMEN

services, without timely disclosure to the party who receives the referral, the Licenseereceived. SPECIM

EN

received.

In addition to the above, the Licensee has the following duties to his/her Client if the Licensee has become an Agent or SPECIMEN

In addition to the above, the Licensee has the following duties to his/her Client if the Licensee has become an Agent or

Obey all lawful instructions of the client when such instructions are within the scopeSPECIMEN

Obey all lawful instructions of the client when such instructions are within the scope


RF 301 – Working with a Real Estate Professional, Page 2 of 2



This form is copyrighted and may only be used in real estate transactions in which ___________________________________________ is involved as a TAR authorized user. Unauthorized use of the form may result in legal sanctions being brought against the user and should be reported to the Tennessee Association of Realtors® at (615) 321-1477.

AN EXPLANATION OF TERMS Facilitator/Transaction Broker (not an agent for either party). The Licensee is not working as an agent for either party 41

in this consumer’s prospective transaction. A Facilitator may advise either or both of the parties to a transaction but 42 cannot be considered a representative or advocate of either party. “Transaction Broker” may be used synonymously 43 with, or in lieu of, “Facilitator” as used in any disclosures, forms or agreements. [By law, any licensee or company who 44 has not entered into a written agency agreement with either party in the transaction is considered a Facilitator or 45 Transaction Broker until such time as an agency agreement is established.] 46

Agent for the Seller. The Licensee’s company is working as an agent for the property seller and owes primary loyalty to the 47 seller. Even if the Licensee is working with a prospective buyer to locate property for sale, rent, or lease, the Licensee 48 and his/her company are legally bound to work in the best interests of any property owners whose property is shown to 49 this prospective buyer. An agency relationship of this type cannot, by law, be established without a written agency 50 agreement. 51

Agent for the Buyer. The Licensee’s company is working as an agent for the prospective buyer, owes primary loyalty to the 52 buyer, and will work as an advocate for the best interests of the buyer. An agency relationship of this type cannot, by 53 law, be established without a written buyer agency agreement. 54

Disclosed Dual Agent (for both parties). Refers to a situation in which the Licensee has agreements to provide services as 55 an agent to more than one party in a specific transaction and in which the interests of such parties are adverse. This 56 agency status may only be employed upon full disclosure to each party and with each party’s informed consent. 57

Designated Agent for the Seller. The individual Licensee that has been assigned by his/her Managing Broker and is 58 working as an agent for the Seller or property owner in this consumer’s prospective transaction, to the exclusion of all 59 other licensees in his/her company. Even if someone else in the Licensee’s company represents a possible buyer for this 60 Seller’s property, the Designated Agent for the Seller will continue to work as an advocate for the best interests of the 61 Seller or property owner. An agency relationship of this type cannot, by law, be established without a written agency 62 agreement. 63

Designated Agent for the Buyer. The individual Licensee that has been assigned by his/her Managing Broker and is 64 working as an agent for the Buyer in this consumer’s prospective transaction, to the exclusion of all other licensees in 65 his/her company. Even if someone else in the Licensee’s company represents a seller in whose property the Buyer is 66 interested, the Designated Agent for the Buyer will continue to work as an advocate for the best interests of the Buyer. 67 An agency relationship of this type cannot, by law, be established without a written agency agreement. 68

Adverse Facts. “Adverse Facts” means conditions or occurrences generally recognized by competent licensees that have a 69 negative impact on the value of the real estate, significantly reduce the structural integrity of improvements to real 70 property or present a significant health risk to occupants of the property. 71

Confidentiality. By law, every licensee is obligated to protect some information as confidential. This includes any 72 information revealed by a consumer which may be helpful to the other party IF it was revealed by the consumer 73 BEFORE the Licensee disclosed an agency relationship with that other party. AFTER the Licensee discloses that he/she 74 has an agency relationship with another party, any such information which the consumer THEN reveals must be passed 75 on by the Licensee to that other party. 76

_________________________________________________ _______________________________________________ 77 Unrepresented Party Signature Date Unrepresented Party Signature Date 78

__________________________________________________ ________________________________________________ 79 Real Estate Licensee Date Real Estate Company Date80

NOTE: This form is provided by TAR to its members for their use in real estate transactions and is to be used as is. By downloading and/or using this form, you agree and covenant not to alter, amend, or edit said form or its contents except as where provided in the blank fields, and agree and acknowledge that any such alteration, amendment or edit of said form is done at your own risk. Use of the TAR logo in conjunction with any form other than standardized forms created by TAR is strictly prohibited. This form is subject to periodic revision and it is the responsibility of the member to use the most recent available form.

DRAFT interested, the Designated Agent for the Buyer will continue to work as an advocate

DRAFT interested, the Designated Agent for the Buyer will continue to work as an advocateAn agency relationship of this type cannot, by law, be established without a written agency agreement.

DRAFT An agency relationship of this type cannot, by law, be established without a written agency agreement.

“Adverse Facts” means conditions or occurrences generally recognized by competent licensees that have a

DRAFT “Adverse Facts” means conditions or occurrences generally recognized by competent licensees that have a negative impact on the value of the real estate, significantly reduce the structural integrity of improvements to real

DRAFT negative impact on the value of the real estate, significantly reduce the structural integrity of improvements to realproperty or present a significant health risk to occupant

DRAFT property or present a significant health risk to occupant

By law, every licensee is obligated to prot

DRAFT By law, every licensee is obligated to prot

information revealed by a consumer which may be helpful to the other party IF it was revealed by the consumer

DRAFT information revealed by a consumer which may be helpful to the other party IF it was revealed by the consumer

L

DRAFT Licensee disclosed an agency relationship with that other party. AFTER the

DRAFT icensee disclosed an agency relationship with that other party. AFTER the

has an agency relationship with another party, any such information which the consumer THEN reveals must be passed

DRAFT has an agency relationship with another party, any such information which the consumer THEN reveals must be passed

e Licensee to that other party.

DRAFT e Licensee to that other party.

____________________

DRAFT _________________________________________________

DRAFT _____________________________ _________________________________________________ ____________________

DRAFT _________________________________________________ ____________________Unrepresented Party Signature

DRAFT Unrepresented Party Signature

__________________________________________________

DRAFT __________________________________________________Real Estate LicenseeDRAFT

Real Estate Licensee

SPECIMEN

saction Broker” may be used synonymously

SPECIMEN

saction Broker” may be used synonymouslyacilitator” as used in any disclosures, forms or agreements. [By law, any licensee or company who

SPECIMEN

acilitator” as used in any disclosures, forms or agreements. [By law, any licensee or company who dered a Facilitator or

SPECIMEN

dered a Facilitator or

icensee’s company is working as an agent for the property seller and owes primary loyalty to the

SPECIMENicensee’s company is working as an agent for the property seller and owes primary loyalty to the

s working with a prospective buyer to locate property for sale, rent, or lease, the

SPECIMENs working with a prospective buyer to locate property for sale, rent, or lease, the L

SPECIMENLicensee

SPECIMENicensee

and his/her company are legally bound to work in the best interests of any property owners whose property is shown to

SPECIMENand his/her company are legally bound to work in the best interests of any property owners whose property is shown to

ip of this type cannot, by law, be established without

SPECIMEN

ip of this type cannot, by law, be established without a

SPECIMEN

a written

SPECIMENwritten agency

SPECIMEN

agency

icensee’s company is working as an agent for the prospective buyer, owes primary loyalty to the

SPECIMEN

icensee’s company is working as an agent for the prospective buyer, owes primary loyalty to thenterests of the buyer. An agency relationship of this type cannot, by

SPECIMEN

nterests of the buyer. An agency relationship of this type cannot, by

icensee has agreements to provide services as

SPECIMEN

icensee has agreements to provide services asan agent to more than one party in a specific transaction and in which the interests of such parties are adverse

SPECIMEN

an agent to more than one party in a specific transaction and in which the interests of such parties are adverseagency status may only be employed upon full disclosure to each party and with each party’s informed consent.

SPECIMEN

agency status may only be employed upon full disclosure to each party and with each party’s informed consent.

icensee that has been assigned by his/her Managing Broker and

SPECIMEN

icensee that has been assigned by his/her Managing Broker and eller or property owner in this consumer’s prospective transaction, to the exclusion of all

SPECIMEN

eller or property owner in this consumer’s prospective transaction, to the exclusion of allsomeone else in the

SPECIMEN

someone else in the L

SPECIMEN

Licensee’s company repres

SPECIMEN

icensee’s company represeller’s property, the Designated Agent for the Seller will continue to work as an advocate

SPECIMEN

eller’s property, the Designated Agent for the Seller will continue to work as an advocateeller or property owner. An agency relationship of this

SPECIMEN

eller or property owner. An agency relationship of this type cannot, by law, be established without a written agency

SPECIMEN

type cannot, by law, be established without a written agency

The individual

SPECIMEN

The individual L

SPECIMEN

Licensee that has been assigned by his/her Managing Broker and

SPECIMEN

icensee that has been assigned by his/her Managing Broker and uyer in this consumer’s prospective transSPECIM

EN

uyer in this consumer’s prospective transhis/her company. Even if someone else in the SPECIM

EN

his/her company. Even if someone else in the L SPECIMEN

Licensee’s company represents a SPECIMEN

icensee’s company represents a interested, the Designated Agent for the Buyer will continue to work as an advocateSPECIM

EN

interested, the Designated Agent for the Buyer will continue to work as an advocateAn agency relationship of this type cannot, by law, be established without a written agency agreement.SPECIM

EN

An agency relationship of this type cannot, by law, be established without a written agency agreement.

“Adverse Facts” means conditions or occurrences generally recognized by competent licensees that have a SPECIMEN

“Adverse Facts” means conditions or occurrences generally recognized by competent licensees that have a


RF 303 – Notification of Change in Agency Status or Agency Relationship, Page 1 of 2




NOTIFICATION OF CHANGE IN STATUS OR AGENCY RELATIONSHIP

Every real estate licensee is required to disclose his or her agency status in a real estate transaction to any buyer or 1 seller who is not represented by an agent and with whom the licensee is working directly in the transaction. Copies of 2 this confirmation must be provided to any signatory thereof. If the licensee’s agency relationship changes at any time 3 during the course of a real estate transaction, that agent is required to immediately notify any other licensees and any 4 parties to the transaction of this change in agency relationship. The following serves as a written confirmation of any 5 change in status or agency relationship by this Licensee (or Licensee’s real estate company): 6

The real estate transaction involving the property located at: 7

___________________________________________________________________________________ (“Property Address”) 8

and involving the following parties: _________________________________________________________ (“Seller” which 9 includes landlord as applicable) and/or ____________________________________________________________ (“Buyer” 10 which includes tenant as applicable). 11

I. PREVIOUS STATUS OR AGENCY RELATIONSHIP: 12 _______________________________________________ (“Licensee” or Firm as applicable) was previously acting in 13 the following capacity in this transaction: 14 Licensee to select the Status or Agency Relationship previously disclosed by Licensee or Firm as applicable on the 15 original Confirmation of Agency Status Form or immediately preceding Notification of Change in Status or 16 Agency Relationship: 17

□ Agent for the Seller □ Agent for the Buyer18

□ Designated Agent for the Seller □ Designated Agent for the Buyer19

□ Transaction Broker or Facilitator □ Disclosed Dual Agent (for both parties)20 (not an agent for either party) with the consent of both the Buyer and the Seller21

II. CHANGE TO STATUS OR AGENCY RELATIONSHIP: 22 ______________________________________________________________ (“Licensee” or Firm as applicable) with 23 _________________________________________________ (“Firm”) has changed his/her status or agency relationship 24 in this transaction to the following: 25 Licensee to select ONE of the following options to describe his/her or Firm’s New Status or Agency Relationship 26 in this Transaction: 27




This form is intended to notify a buyer, seller, and/or any other licensee in transaction of a change in status or agency 32 relationship of a real estate agent. This document also serves as confirmation that the licensee’s Agency or Transaction 33 Broker status was communicated orally before any real estate services were provided and also serves as a statement 34 acknowledging that the buyer or seller, as applicable, was informed that any complaints alleging a violation or violations of 35 Tenn. Code Ann. § 62-13-312 must be filed within the applicable statute of limitations for s uch violation set out in Tenn. 36 Code Ann. § 62-13-313(e) with the Tennessee Real Estate Commission, 500 James Robertson Parkway, Nashville, TN 37 37243, PH: (615) 741-2273. This notice by itself, however, does not constitute an agency agreement or establish any 38 agency relationship.39

DRAFT Transaction Broker or Facilitator

DRAFT Transaction Broker or Facilitator (not an agent for either party)

DRAFT (not an agent for either party)

CHANGE TO STATUS OR AGENCY RELATIONSHIP:

DRAFT CHANGE TO STATUS OR AGENCY RELATIONSHIP:________________________

DRAFT ___________________________

DRAFT ______________________________________________________

DRAFT ___________________________________________________ __________________

DRAFT __________________________________________

DRAFT ________________________

_____________________________

DRAFT __________________________________

DRAFT ____________________________________________________________________

DRAFT _______________________________________________________________ _______________ (“Firm”)

DRAFT _______________ (“Firm”)

nsaction to the following

DRAFT nsaction to the following:

DRAFT :

Licensee to select ONE of the following options to d

DRAFT Licensee to select ONE of the following options to din this Transaction:

DRAFT in this Transaction:

Agent for the Seller

DRAFT Agent for the Seller

Designated Agent for the Seller

DRAFT Designated Agent for the Seller

□

DRAFT □ Transaction Broker or Facilitator

DRAFT Transaction Broker or Facilitator (not an agent for either

DRAFT (not an agent for either

This form DRAFT

This form is intended to DRAFT

is intended to relationship of a real estate agent. DRAFT

relationship of a real estate agent. Broker status was communicated orally before any real estate services were provided and also serves as a statement DRAFT

Broker status was communicated orally before any real estate services were provided and also serves as a statement acknowledging that the buyer or seller, as applicable, was informed that any complaintDRAFT

acknowledging that the buyer or seller, as applicable, was informed that any complaint

SPECIMENate transaction to any buyer or


rectly in the transaction.

SPECIMENrectly in the transaction. Copies

SPECIMENCopies of

SPECIMENof

If the licensee’s agency relationship changes at any time

SPECIMENIf the licensee’s agency relationship changes at any time

immediately notify any other licensees and any

SPECIMENimmediately notify any other licensees and any

parties to the transaction of this change in agency relationship. The following serves as a written confirmation of any

SPECIMEN

parties to the transaction of this change in agency relationship. The following serves as a written confirmation of any pany):

SPECIMEN

pany):

__________________________________________________________________________________

SPECIMEN

___________________________________________________________________________________ (“Property Address”)

SPECIMEN

_ (“Property Address”) ___________________________________________________________________________________ (“Property Address”) __________________________________________________________________________________

SPECIMEN

___________________________________________________________________________________ (“Property Address”) __________________________________________________________________________________

and involving the following parties: ___________________________________________

SPECIMEN

and involving the following parties: _________________________________________________________ (“Seller”

SPECIMEN

______________ (“Seller”and involving the following parties: _________________________________________________________ (“Seller”and involving the following parties: ___________________________________________

SPECIMEN

and involving the following parties: _________________________________________________________ (“Seller”and involving the following parties: ______________________________________________________________

SPECIMEN

___________________________________________________ (“Buyer”

SPECIMEN

________________________________ (“Buyer”___________________________________________________ (“Buyer”___________________

SPECIMEN

___________________________________________________ (“Buyer”___________________

(“Licensee”

SPECIMEN

(“Licensee” or Firm as applicable

SPECIMEN

or Firm as applicable

Status or Agency Relationship previously disclosed by Licensee

SPECIMEN

Status or Agency Relationship previously disclosed by Licensees Form or immediately p

SPECIMEN

s Form or immediately preceding Notification of Change in Status or

SPECIMEN

receding Notification of Change in Status or

□SPECIMEN

□ Agent for the BuyerSPECIMEN

Agent for the Buyer

□SPECIMEN

□






The following signatures constitute acknowledgment of receipt of this Notification of Change in Status or Agency 40 Relationship disclosure by the Realtor® acting as Agent/Broker OR other status of Seller/Landlord and/or Buyer/Tenant listed 41 above pursuant to the National Association of Realtors® Code of Ethics and Standards of Practice. 42

__________________________________________________ ________________________________________________ 43 Seller Signature Date Buyer Signature Date 44


__________________________________________________ ________________________________________________ 47 Listing Licensee Date Selling Licensee Date 48

__________________________________________________ ________________________________________________ 49 Listing Company Date Selling Company Date 50


DRAFT SPECIM

EN________________________________________________

SPECIMEN

________________________________________________Date

SPECIMEN

Date

________________________________________________

SPECIMEN________________________________________________

SPECIMENDate

SPECIMENDate

SPECIMEN

SPECIMEN

SPECIMEN

________________________________________________

SPECIMEN

________________________________________________

SPECIMEN

Date

SPECIMEN

Date

________________________________________________

SPECIMEN

________________________________________________

SPECIMEN

al estate transactions and is to be used as is. By downloading and/or using this form,

SPECIMEN

al estate transactions and is to be used as is. By downloading and/or using this form, you agree and covenant not to alter, amend, or edit said form or its contents except as where provided in the blank fields, a

SPECIMEN

you agree and covenant not to alter, amend, or edit said form or its contents except as where provided in the blank fields, and agree and acknowledge that

SPECIMEN

nd agree and acknowledge that ration, amendment or edit of said form is done at your own risk. Use of the TAR logo in conjunction with any form other than

SPECIMEN

ration, amendment or edit of said form is done at your own risk. Use of the TAR logo in conjunction with any form other thanforms created by TAR is strictly prohibited. This form is subject to periodic revision and it is the responsibility

SPECIMEN

forms created by TAR is strictly prohibited. This form is subject to periodic revision and it is the responsibility of the member to use the most recent

SPECIMEN

of the member to use the most recent






NOTIFICATION OF CHANGE IN STATUS OR AGENCY RELATIONSHIP

Every real estate licensee is required to disclose his or her agency status in a real estate transaction to any buyer or 1 seller who is not represented by an agent and with whom the licensee is working directly in the transaction. Copies of 2 this confirmation must be provided to any signatory thereof. If the licensee’s agency relationship changes at any time 3 during the course of a real estate transaction, that agent is required to immediately notify any other licensees and any 4 parties to the transaction of this change in agency relationship. The following serves as a written confirmation of any 5 change in status or agency relationship by this Licensee (or Licensee’s real estate company): 6

The real estate transaction involving the property located at: 7

___________________________________________________________________________________ (“Property Address”) 8

and involving the following parties: _________________________________________________________ (“Seller” which 9 includes landlord as applicable) and/or ____________________________________________________________ (“Buyer” 10 which includes tenant as applicable). 11

I. PREVIOUS STATUS OR AGENCY RELATIONSHIP: 12 _______________________________________________ (“Licensee” or Firm as applicable) was previously acting in 13 the following capacity in this transaction: 14 Licensee to select the Status or Agency Relationship previously disclosed by Licensee or Firm as applicable on the 15 original Confirmation of Agency Status Form or immediately preceding Notification of Change in Status or 16 Agency Relationship: 17




II. CHANGE TO STATUS OR AGENCY RELATIONSHIP: 22 ______________________________________________________________ (“Licensee” or Firm as applicable) with 23 _________________________________________________ (“Firm”) has changed his/her status or agency relationship 24 in this transaction to the following: 25 Licensee to select ONE of the following options to describe his/her or Firm’s New Status or Agency Relationship 26 in this Transaction: 27




This form is intended to notify a buyer, seller, and/or any other licensee in transaction of a change in status or agency 32 relationship of a real estate agent. This document also serves as confirmation that the licensee’s Agency or Transaction 33 Broker status was communicated orally before any real estate services were provided and also serves as a statement 34 acknowledging that the buyer or seller, as applicable, was informed that any complaints alleging a violation or violations of 35 Tenn. Code Ann. § 62-13-312 must be filed within the applicable statute of limitations for s uch violation set out in Tenn. 36 Code Ann. § 62-13-313(e) with the Tennessee Real Estate Commission, 500 James Robertson Parkway, Nashville, TN 37 37243, PH: (615) 741-2273. This notice by itself, however, does not constitute an agency agreement or establish any 38 agency relationship.39

DRAFT Transaction Broker or Facilitator

DRAFT Transaction Broker or Facilitator (not an agent for either party)

DRAFT (not an agent for either party)

CHANGE TO STATUS OR AGENCY RELATIONSHIP:

DRAFT CHANGE TO STATUS OR AGENCY RELATIONSHIP:________________________

DRAFT ___________________________

DRAFT ______________________________________________________

DRAFT ___________________________________________________ __________________

DRAFT __________________________________________

DRAFT ________________________

_____________________________

DRAFT __________________________________

DRAFT ____________________________________________________________________

DRAFT _______________________________________________________________ _______________ (“Firm”)

DRAFT _______________ (“Firm”)

nsaction to the following

DRAFT nsaction to the following:

DRAFT :

Licensee to select ONE of the following options to d

DRAFT Licensee to select ONE of the following options to din this Transaction:

DRAFT in this Transaction:

Agent for the Seller

DRAFT Agent for the Seller

Designated Agent for the Seller

DRAFT Designated Agent for the Seller

□

DRAFT □ Transaction Broker or Facilitator

DRAFT Transaction Broker or Facilitator (not an agent for either

DRAFT (not an agent for either

This form DRAFT

This form is intended to DRAFT

is intended to relationship of a real estate agent. DRAFT

relationship of a real estate agent. Broker status was communicated orally before any real estate services were provided and also serves as a statement DRAFT

Broker status was communicated orally before any real estate services were provided and also serves as a statement acknowledging that the buyer or seller, as applicable, was informed that any complaintDRAFT

acknowledging that the buyer or seller, as applicable, was informed that any complaint



rectly in the transaction.

SPECIMENrectly in the transaction. Copies

SPECIMENCopies of

SPECIMENof

If the licensee’s agency relationship changes at any time

SPECIMENIf the licensee’s agency relationship changes at any time

immediately notify any other licensees and any

SPECIMENimmediately notify any other licensees and any

parties to the transaction of this change in agency relationship. The following serves as a written confirmation of any

SPECIMEN

parties to the transaction of this change in agency relationship. The following serves as a written confirmation of any pany):

SPECIMEN

pany):

__________________________________________________________________________________

SPECIMEN

___________________________________________________________________________________ (“Property Address”)

SPECIMEN

_ (“Property Address”) ___________________________________________________________________________________ (“Property Address”) __________________________________________________________________________________

SPECIMEN

___________________________________________________________________________________ (“Property Address”) __________________________________________________________________________________

and involving the following parties: ___________________________________________

SPECIMEN

and involving the following parties: _________________________________________________________ (“Seller”

SPECIMEN

______________ (“Seller”and involving the following parties: _________________________________________________________ (“Seller”and involving the following parties: ___________________________________________

SPECIMEN

and involving the following parties: _________________________________________________________ (“Seller”and involving the following parties: ______________________________________________________________

SPECIMEN

___________________________________________________ (“Buyer”

SPECIMEN

________________________________ (“Buyer”___________________________________________________ (“Buyer”___________________

SPECIMEN

___________________________________________________ (“Buyer”___________________

(“Licensee”

SPECIMEN

(“Licensee” or Firm as applicable

SPECIMEN

or Firm as applicable

Status or Agency Relationship previously disclosed by Licensee

SPECIMEN

Status or Agency Relationship previously disclosed by Licensees Form or immediately p

SPECIMEN

s Form or immediately preceding Notification of Change in Status or

SPECIMEN

receding Notification of Change in Status or

□SPECIMEN

□ Agent for the BuyerSPECIMEN

Agent for the Buyer

□SPECIMEN

□






The following signatures constitute acknowledgment of receipt of this Notification of Change in Status or Agency 40 Relationship disclosure by the Realtor® acting as Agent/Broker OR other status of Seller/Landlord and/or Buyer/Tenant listed 41 above pursuant to the National Association of Realtors® Code of Ethics and Standards of Practice. 42



__________________________________________________ ________________________________________________ 47 Listing Licensee Date Selling Licensee Date 48

__________________________________________________ ________________________________________________ 49 Listing Company Date Selling Company Date 50


DRAFT SPECIM

EN________________________________________________

SPECIMEN

________________________________________________Date

SPECIMEN

Date

________________________________________________

SPECIMEN________________________________________________

SPECIMENDate

SPECIMENDate

SPECIMEN

SPECIMEN

SPECIMEN

________________________________________________

SPECIMEN

________________________________________________

SPECIMEN

Date

SPECIMEN

Date

________________________________________________

SPECIMEN

________________________________________________

SPECIMEN

al estate transactions and is to be used as is. By downloading and/or using this form,

SPECIMEN

al estate transactions and is to be used as is. By downloading and/or using this form, you agree and covenant not to alter, amend, or edit said form or its contents except as where provided in the blank fields, a

SPECIMEN

you agree and covenant not to alter, amend, or edit said form or its contents except as where provided in the blank fields, and agree and acknowledge that

SPECIMEN

nd agree and acknowledge that ration, amendment or edit of said form is done at your own risk. Use of the TAR logo in conjunction with any form other than

SPECIMEN

ration, amendment or edit of said form is done at your own risk. Use of the TAR logo in conjunction with any form other thanforms created by TAR is strictly prohibited. This form is subject to periodic revision and it is the responsibility

SPECIMEN

forms created by TAR is strictly prohibited. This form is subject to periodic revision and it is the responsibility of the member to use the most recent

SPECIMEN

of the member to use the most recent


RF401 – Purchase and Sale Agreement, Page 1 of 9 TENNESSEEASSOCIATIONOF REALTORS®



PURCHASE AND SALE AGREEMENT 1. Purchase and Sale. For and in consideration of the mutual covenants herein and other good and valuable consideration, 1

the receipt and sufficiency of which is hereby acknowledged, the undersigned buyer 2 _______________________________________________________________________ (“Buyer”) agrees to buy and the 3 undersigned seller _________________________________________________________________________ (“Seller”) 4agrees to sell all that tract or parcel of land, with such improvements as are located thereon, described as follows: 5 All that tract of land known as: _______________________________________________________________________ 6 (Address) _______________________________________ (City), Tennessee, __________ (Zip), as recorded in 7 _____________________________ County Register of Deeds Office, _________ deed book(s), _________ page(s), 8 and/or ________________________________ instrument number and as further described as: 9 ___________________________________________________________________________________ together with all 10 fixtures, landscaping, improvements, and appurtenances, all being hereinafter collectively referred to as the “Property.” 11 A. INCLUDED as part of the Property (if present): all attached light fixtures and bulbs including ceiling fans; 12

permanently attached plate glass mirrors; heating, cooling, and plumbing fixtures and equipment; all doors, storm 13 doors and windows; all window treatments (e.g., shutters, blinds, shades, curtains, draperies) and hardware; all wall-14 to-wall carpet; range; all built-in kitchen appliances; all bathroom fixtures and bathroom mirrors; all gas logs, 15 fireplace doors and attached screens; all security system components and controls; garage door opener and all (at 16 least ____) remote controls; an entry key; swimming pool and its equipment; awnings; permanently installed 17 outdoor cooking grills; all landscaping and all outdoor lighting; mailbox(es); attached basketball goals and 18 backboards; TV mounting brackets (but excluding flat screen TVs); antennae and satellite dishes (excluding 19components); and central vacuum systems and attachments. 20

B. Other items that REMAIN with the Property at no additional cost to Buyer: 21 _________________________________________________________________________________________________22_________________________________________________________________________________________________ 23 C. Items that WILL NOT REMAIN with the Property: 24 _________________________________________________________________________________________________25_________________________________________________________________________________________________ 26 D. LEASED ITEMS: Leased items that remain with the Property: (e.g., security systems, water softener systems, fuel 27

tank, etc.): ____________________________________________________________________________________.28Buyer shall assume any and all lease payments as of Closing. If leases are not assumable, the balance shall be paid 29 in full by Seller at or before Closing. 30 □ Buyer does not wish to assume a leased item. (THIS BOX MUST BE CHECKED IN ORDER FOR IT TO31

BE A PART OF THIS AGREEMENT.)32 Buyer does not wish to assume Seller's current lease of _______________________________; therefore, Seller33 shall have said lease cancelled and leased items removed from Property prior to Closing.34

E. FUEL: Fuel, if any, will be adjusted and charged to Buyer and credited to Seller at Closing at current market prices. 35 2. Purchase Price, Method of Payment and Closing Expenses. Buyer warrants that, except as may be otherwise 36

provided herein, Buyer will at Closing have sufficient cash to complete the purchase of the Property under the terms of 37 this Purchase and Sale Agreement (hereinafter "Agreement"). The purchase price to be paid is: 38 $____________________, ________________________________________________________________ U.S. Dollars, 39 (“Purchase Price”) which shall be disbursed at Buyer’s expense and paid to Seller or Seller’s Closing Agency in 40 immediately available funds in the form of one of the following: 41

i. a Federal Reserve Bank wire transfer;42 ii. a Cashier’s Check issued by a financial institution as defined in 12 CFR § 229.2(i);43 iii. a check issued by the State of Tennessee or a political subdivision thereof;44 iv. a check issued by an instrumentality of the United States organized and existing under the Farm Credit Act of45

1971; OR46v. in other such form as is approved in writing by Seller.47

A. Appraisal (Select either 1 or 2 below. The sections not checked are not a part of this Agreement). 48 □ 1. This Agreement IS NOT contingent upon the appraised value either equaling or exceeding the agreed upon 49

Purchase Price. 50

DRAFT : Leased items that remain with the Property: (e.g., se

DRAFT : Leased items that remain with the Property: (e.g., setank, etc.): ____________________________________________________________________________________.

DRAFT tank, etc.): ____________________________________________________________________________________.Buyer shall assume any and all lease payments as of Closing. If leases are not assumable, the balance shall be

DRAFT Buyer shall assume any and all lease payments as of Closing. If leases are not assumable, the balance shall be in full by Seller at or before Closing.

DRAFT in full by Seller at or before Closing.Buyer does not wish to assume a leased item. (

DRAFT Buyer does not wish to assume a leased item. (BE A PART OF THIS AGREEMENT.)

DRAFT BE A PART OF THIS AGREEMENT.)Buyer does not wish to assume Seller's current lease of

DRAFT Buyer does not wish to assume Seller's current lease ofshall have said lease cancelled and leased items removed from Property prior to Closing.

DRAFT shall have said lease cancelled and leased items removed from Property prior to Closing.

Fuel, if any, will be adjusted and charged to Buyer and credited to Seller at Closing at current market pri

DRAFT Fuel, if any, will be adjusted and charged to Buyer and credited to Seller at Closing at current market pri

Purchase Price, Method of Payment and Closing Expenses.

DRAFT Purchase Price, Method of Payment and Closing Expenses.provided herein, Buyer will at Closing have sufficient cash to complete the purchase of the Property under the terms of

DRAFT provided herein, Buyer will at Closing have sufficient cash to complete the purchase of the Property under the terms ofthis Purchase and Sale

DRAFT this Purchase and Sale $____________________, ________________________________________________________________ U.S. Dollars,

DRAFT $____________________, ________________________________________________________________ U.S. Dollars,(“Purchase Price”) which shall be disbursed at Buyer’s expense and paid to Seller

DRAFT (“Purchase Price”) which shall be disbursed at Buyer’s expense and paid to Sellerimmediately available funds in the form of one of the following:

DRAFT immediately available funds in the form of one of the following:

i.DRAFT

i. a Federal Reserve Bank wire transfer;DRAFT

a Federal Reserve Bank wire transfer;ii.DRAFT

ii. a Cashier’s Check issued by a financial institution as defined in 12 CFR § 229.2(i);DRAFT

a Cashier’s Check issued by a financial institution as defined in 12 CFR § 229.2(i);iii.DRAFT

iii. a check issued by the StatDRAFT

a check issued by the Stativ.DRAFT

iv.

SPECIMEN

For and in consideration of the mutual covenants herein and other good and valuable consideration,

SPECIMEN

For and in consideration of the mutual covenants herein and other good and valuable consideration,

_______________________________________________________________________ (“Buyer”) agrees to buy and the

SPECIMEN_______________________________________________________________________ (“Buyer”) agrees to buy and the

_______ (“Seller”)

SPECIMEN_______ (“Seller”)

agrees to sell all that tract or parcel of land, with such improvements as are located thereon, described as follows:

SPECIMENagrees to sell all that tract or parcel of land, with such improvements as are located thereon, described as follows:

All that tract of land known as: _______________________________________________________________________

SPECIMENAll that tract of land known as: _______________________________________________________________________

___________________________________ (City), Tennessee, __________ (Zip), as recorded in

SPECIMEN___________________________________ (City), Tennessee, __________ (Zip), as recorded in

_____________________________ County Register of Deeds Office, _________ deed book(s), _________ page(s),

SPECIMEN

_____________________________ County Register of Deeds Office, _________ deed book(s), _________ page(s),as further described as:

SPECIMEN

as further described as:_________________

SPECIMEN

_________________ together with all

SPECIMEN

together with allfixtures, landscaping, improvements, and appurtenances, all being hereinafter collectively referred to as the “Property.”

SPECIMEN

fixtures, landscaping, improvements, and appurtenances, all being hereinafter collectively referred to as the “Property.”as part of the Property (if present): all attached light fixtures and bulbs including ceiling fans;

SPECIMEN

as part of the Property (if present): all attached light fixtures and bulbs including ceiling fans;permanently attached plate glass mirrors; heating, cooling, and plumbing fixtures and equipment; all doors, storm

SPECIMEN

permanently attached plate glass mirrors; heating, cooling, and plumbing fixtures and equipment; all doors, stormshutters, blinds, shades, curtains, draperies) and hardware; all wall

SPECIMEN

shutters, blinds, shades, curtains, draperies) and hardware; all wallin kitchen appliances; all bathroom fixtures and bathroom mirrors; all gas logs,

SPECIMEN

in kitchen appliances; all bathroom fixtures and bathroom mirrors; all gas logs,ponents and controls; garage door opener and all (at

SPECIMEN

ponents and controls; garage door opener and all (atswimming pool and its equipment; awnings; permanently installed

SPECIMEN

swimming pool and its equipment; awnings; permanently installedoutdoor cooking grills; all landscaping and all outdoor lighting; mailbox(es); attached basketba

SPECIMEN

outdoor cooking grills; all landscaping and all outdoor lighting; mailbox(es); attached basketba(but excluding flat screen TVs)

SPECIMEN

(but excluding flat screen TVs);

SPECIMEN

; antennae and satellite dishes (excluding

SPECIMEN

antennae and satellite dishes (excluding components); and central vacuum systems and attachments.

SPECIMEN

components); and central vacuum systems and attachments.with the Property at no additional cost to Buyer:

SPECIMEN

with the Property at no additional cost to Buyer:_________________________________________________________________________________________________

SPECIMEN

__________________________________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

_________________________________________________________________________________________________with the Property:

SPECIMEN

with the Property:______________________________________________________________________________________SPECIM

EN

_______________________________________________________________________________________________________________________________________________________________________________________SPECIM

EN

_________________________________________________________________________________________________: Leased items that remain with the Property: (e.g., seSPECIM

EN

: Leased items that remain with the Property: (e.g., setank, etc.): ____________________________________________________________________________________.SPECIM

EN

tank, etc.): ____________________________________________________________________________________.Buyer shall assume any and all lease payments as of Closing. If leases are not assumable, the balance shall be SPECIM

EN

Buyer shall assume any and all lease payments as of Closing. If leases are not assumable, the balance shall be





□ 2. This Agreement IS CONTINGENT upon the appraised value either equaling or exceeding the agreed 51 upon Purchase Price. In the event that the financing contingency is waived, Buyer must order the appraisal 52 and provide Seller with the name and telephone number of the appraisal company and proof that appraisal 53 was ordered within five (5) days of the Binding Agreement Date. Should Buyer fail to do so, Seller may 54 make written demand for compliance via the Notification form or equivalent written notice. If Buyer does 55 not furnish Seller with the requested notice within two (2) days after such demand for compliance, Buyer 56 shall be considered in default and Seller’s obligation to sell is terminated. If the appraised value is equal to 57 or exceeds Purchase Price, this contingency is satisfied. If the appraised value of the Property does not 58 equal or exceed the Purchase Price, Buyer may terminate this Agreement by providing written notice to the 59 Seller and providing written proof of the same (for example, this written proof could include, but is not 60 limited to, a copy of appraisal or a signed letter from Lender) via the Notification form or equivalent 61 written notice. Upon termination, Buyer is entitled to a refund of the Earnest Money. 62

B. Closing Costs and Discount Points. 63 1. Seller Expenses. Seller shall pay all existing loans and/or liens affecting the Property, including all penalties, 64

release preparation costs, and applicable recording costs; any accrued and/or outstanding association dues or 65 fees; fee (if any) to obtain lien payoff/estoppel letters/statement of accounts from any and all associations, 66 property management companies, mortgage holders or other liens affecting the Property; Seller’s closing fee, 67 document preparation fee and/or attorney’s fees; fee for preparation of deed; and notary fee on deed. Seller 68 additionally agrees to permit any withholdings and/or to pay any additional sum due as is required under the 69 Foreign Investment in Real Property Tax Act. Failure to do so will constitute a default by Seller. 70

In the event Seller is subject to Tax Withholding as required by the Foreign Investment in Real Property 71 Tax Act, (hereinafter “FIRPTA”), Seller additionally agrees that such Tax Withholding must be collected 72 from Seller by Buyer’s Closing Agent at the time of Closing. In the event Seller is not subject to FIRPTA, 73 Seller shall be required as a condition of Closing to sign appropriate affidavits certifying that Seller is not 74 subject to FIRPTA. It is Seller’s responsibility to seek independent tax advice or counsel prior to the Closing 75 Date regarding such tax matters. 76

2. Buyer Expenses. Buyer shall pay all transfer taxes and recording fees on deed of conveyance and deed of trust; 77 Buyer’s closing fee, document preparation fee and/or attorney’s fees; preparation of note, deed of trust, and 78 other loan documents; mortgage loan inspection or boundary line survey; credit report; required premiums for 79 private mortgage, hazard and flood insurance; required reserved deposits for insurance premiums and taxes; 80 prepaid interest; re-inspection fees pursuant to appraisal; insured Closing Protection Letter; association fees as 81 stated within paragraph 4.E.; and any costs incident to obtaining and closing a loan, including but not limited to: 82 appraisal, origination, discount points, application, commitment, underwriting, document review, courier, 83 assignment, photo, tax service and notary fees. 84

3. Title Expenses. Cost of title search or abstract, mortgagee’s policy and owner’s policy shall be paid as follows: 85 _________________________________________________________________________________________. 86 Buyer to receive benefit of simultaneous issue. 87

Not all of the above items are applicable to every transaction and may be modified as follows: 88 _____________________________________________________________________________________________ 89 _____________________________________________________________________________________________ 90 Closing Agency for Buyer: ______________________________________________________________________ 91 Closing Agency for Seller: ______________________________________________________________________ 92 Title Company: _______________________________________________________________________________ 93 or other Closing Agency as mutually agreed by Seller and Buyer. 94

C. Financial Contingency – Loan(s) To Be Obtained. This Agreement is conditioned upon Buyer’s ability to obtain 95 a loan(s) in the principal amount up to _________% of the Purchase Price listed above to be secured by a deed of 96 trust on the Property. “Ability to obtain” as used herein means that Buyer is qualified to receive the loan described 97 herein based upon Lender’s customary and standard underwriting criteria. In the event Buyer, having acted in good 98 faith and in accordance with the terms below, is unable to obtain financing, Buyer may terminate this Agreement by 99 providing written notice and a copy of Lender’s loan denial letter via the Notification form or equivalent written 100 notice. Upon termination, Buyer is entitled to a refund of the Earnest Money. Lender is defined herein as the 101 financial institution funding the loan. 102 The loan shall be of the type selected below (Select the appropriate boxes. Unselected items will not be part of 103 this Agreement): 104

□ Conventional Loan □ FHA Loan; attach addendum 105 □ VA Loan; attach addendum □ Other _____________________________________________ 106

DRAFT appraisal, origination, discount points, application,

DRAFT appraisal, origination, discount points, application,assignment, photo, tax service and notary fees.

DRAFT assignment, photo, tax service and notary fees.. Cost of title search or abstract, mortgagee’s policy and owner’s policy shall be paid as follows:

DRAFT . Cost of title search or abstract, mortgagee’s policy and owner’s policy shall be paid as follows: _____________________________________

DRAFT _____________________________________Buyer to receive benefit of simultaneous issue.

DRAFT Buyer to receive benefit of simultaneous issue.Not all of the above items are applicable to every transaction and may be modified as follows:

DRAFT Not all of the above items are applicable to every transaction and may be modified as follows:__________________________________________________________

DRAFT _______________________________________________________________________________________________________________________________________________________

DRAFT _____________________________________________________________________________________________Closing Agency for Buyer:

DRAFT Closing Agency for Buyer: ______________________________________________________________________

DRAFT ______________________________________________________________________

Closing Agency for Seller:

DRAFT Closing Agency for Seller:Title

DRAFT Title Company

DRAFT Company: _______________________________________________________________________________

DRAFT : _______________________________________________________________________________

or other Closing Agency as mutually agreed by Seller and Buyer.

DRAFT or other Closing Agency as mutually agreed by Seller and Buyer.

C.

DRAFT C. Financial Contingency

DRAFT Financial Contingency a loan(s) in the principal amount up to _________% of the Purchase Price listed above to be secured by a deed of

DRAFT a loan(s) in the principal amount up to _________% of the Purchase Price listed above to be secured by a deed of trust on the Property. “Ability to obtain” as used herei

DRAFT trust on the Property. “Ability to obtain” as used hereiherein based upon Lender’s customary and standard underwriting criteria. In the event Buyer, having acted in good DRAFT

herein based upon Lender’s customary and standard underwriting criteria. In the event Buyer, having acted in good faith and in accordance with the terms below, is unable to obtain financing, BuDRAFT

faith and in accordance with the terms below, is unable to obtain financing, Buproviding written notice and a copy of Lender’s loan denial letter via the Notification form or equivalent written DRAFT

providing written notice and a copy of Lender’s loan denial letter via the Notification form or equivalent written notice. Upon termination, Buyer is entitled to a refund of the Earnest Money. Lender is defined herein DRAFT

notice. Upon termination, Buyer is entitled to a refund of the Earnest Money. Lender is defined herein

SPECIMEN

appraised value is equal to

SPECIMEN

appraised value is equal to the appraised value of the Property does not

SPECIMEN

the appraised value of the Property does not equal or exceed the Purchase Price, Buyer may terminate this Agreement by providing written notice to the

SPECIMENequal or exceed the Purchase Price, Buyer may terminate this Agreement by providing written notice to the

Seller and providing written proof of the same (for example, this written proof could include, but is no

SPECIMENSeller and providing written proof of the same (for example, this written proof could include, but is not

SPECIMENt

limited to, a copy of appraisal or a signed letter from Lender) via the Notification form or equivalent

SPECIMENlimited to, a copy of appraisal or a signed letter from Lender) via the Notification form or equivalent

er shall pay all existing loans and/or liens affecting the Property, including all penalties,

SPECIMEN

er shall pay all existing loans and/or liens affecting the Property, including all penalties, release preparation costs, and applicable recording costs; any accrued and/or outstanding association dues or

SPECIMEN

release preparation costs, and applicable recording costs; any accrued and/or outstanding association dues or /statement of accounts

SPECIMEN

/statement of accounts from any and all associations,

SPECIMEN

from any and all associations, mortgage holders or other liens affecting the Property; Seller’s closing fee,

SPECIMEN

mortgage holders or other liens affecting the Property; Seller’s closing fee, document preparation fee and/or attorney’s fees; fee for preparation of deed; and notary

SPECIMEN

document preparation fee and/or attorney’s fees; fee for preparation of deed; and notary fee on deed. Seller

SPECIMEN

fee on deed. Seller additionally agrees to permit any withholdings and/or to pay any additional sum due as is required under the

SPECIMEN

additionally agrees to permit any withholdings and/or to pay any additional sum due as is required under the Foreign Investment in Real Property Tax Act. Failure to do so will constitute a default by Seller.

SPECIMEN

Foreign Investment in Real Property Tax Act. Failure to do so will constitute a default by Seller.r is subject to Tax Withholding as required by the Foreign Investment in Real Property

SPECIMEN

r is subject to Tax Withholding as required by the Foreign Investment in Real Property Tax Act, (hereinafter “FIRPTA”), Seller additionally agrees that such Tax Withholding must be collected

SPECIMEN

Tax Act, (hereinafter “FIRPTA”), Seller additionally agrees that such Tax Withholding must be collected from Seller by Buyer’s Closing Agent at the time of Closing

SPECIMEN

from Seller by Buyer’s Closing Agent at the time of Closing. In t

SPECIMEN

. In the event Seller is not subject to FIRPTA,

SPECIMEN

he event Seller is not subject to FIRPTA, Seller shall be required as a condition of Closing to sign appropriate affidavits certifying that Seller is not

SPECIMEN

Seller shall be required as a condition of Closing to sign appropriate affidavits certifying that Seller is not It is Seller’s responsibility to seek independent tax advice or counsel prior to th

SPECIMEN

It is Seller’s responsibility to seek independent tax advice or counsel prior to th

Buyer shall pay all transfer taxes and recording fees on deed of conveyance and deed of trust;

SPECIMEN

Buyer shall pay all transfer taxes and recording fees on deed of conveyance and deed of trust; Buyer’s closing fee, document preparation fee and/or attorney’s fees; preparation of note, deed of

SPECIMEN

Buyer’s closing fee, document preparation fee and/or attorney’s fees; preparation of note, deed ofother loan documents; mortgage loan inspection or boundary line survey; credit report; required premiums for

SPECIMEN

other loan documents; mortgage loan inspection or boundary line survey; credit report; required premiums for private mortgage, hazard and flood insurance; required reserved deposits for insurance premiums and taxes;

SPECIMEN

private mortgage, hazard and flood insurance; required reserved deposits for insurance premiums and taxes; ion fees pursuant to appraisal; SPECIM

EN

ion fees pursuant to appraisal; and any costs incident to obtaining and closing a loan, including but not limited to: SPECIM

EN

and any costs incident to obtaining and closing a loan, including but not limited to: appraisal, origination, discount points, application,SPECIM

EN

appraisal, origination, discount points, application,assignment, photo, tax service and notary fees.SPECIM

EN

assignment, photo, tax service and notary fees.. Cost of title search or abstract, mortgagee’s policy and owner’s policy shall be paid as follows: SPECIM

EN

. Cost of title search or abstract, mortgagee’s policy and owner’s policy shall be paid as follows:





Buyer may apply for a loan with different terms and conditions and also Close the transaction provided all other 107 terms and conditions of this Agreement are fulfilled, and the new loan does not increase any costs charged to Seller. 108 Buyer shall be obligated to Close this transaction if Buyer has the ability to obtain a loan with terms as described 109 herein and/or any other loan for which Buyer has applied and been approved. 110

Loan Obligations: The Buyer agrees and/or certifies as follows: 111 (1) Within five (5) days after the Binding Agreement Date, Buyer shall make application for the loan. Buyer 112

shall immediately notify Seller or Seller’s representative of having applied for the loan and provide 113 Lender’s name and contact information, and that Buyer has instructed Lender to order credit report and 114 appraisal via the Notification form or equivalent written notice; 115

(2) Within fourteen (14) days after the Binding Agreement Date, Buyer shall warrant and represent to Seller 116 via the Notification form or equivalent written notice that: 117 a. all required Lender deposits, including appraisal cost and credit report, have been paid as evidenced by 118

supporting documentation (e.g. cancelled check, receipt from Lender, letter from loan originator, etc.); 119 and 120

b. Buyer has available funds to Close per estimates of Lender / loan originator. 121 (3) Buyer shall pursue qualification for and approval of the loan diligently and in good faith; 122

(4) Buyer shall continually and immediately provide requested documentation to Lender and/or loan 123 originator; 124

(5) Unless otherwise stated in this Agreement, Buyer represents that this loan is not contingent upon the lease 125 or sale of any other real property and the same shall not be used as the basis for loan denial; and 126

(6) Buyer shall not intentionally make any material changes in Buyer’s financial condition which would 127 adversely affect Buyer’s ability to obtain the Primary Loan or any other loan referenced herein. 128

Should Buyer fail to timely comply with 2.C.(1) and/or 2.C.(2) above and provide notice as required, Seller may 129 make written demand for compliance via the Notification form or equivalent written notice. If Buyer does not 130 furnish Seller the requested documentation within two (2) days after such demand for compliance, Buyer shall be 131 considered in default and Seller’s obligation to sell is terminated. 132

□ Financing Contingency Waived (THIS BOX MUST BE CHECKED TO BE PART OF THIS AGREEMENT.) 133 (e.g. “All Cash”, etc.): Buyer’s obligation to close shall not be subject to any financial contingency. Buyer reserves 134 the right to obtain a loan. Buyer will furnish proof of available funds to close in the following manner: 135 _____________________________________ (e.g. bank statement, Lender’s commitment letter) within five (5) 136 days after Binding Agreement Date. Should Buyer fail to do so, Seller may make written demand for compliance 137 via the Notification form or equivalent written notice. If Buyer does not furnish Seller with the requested notice 138 within two (2) days after such demand for compliance, Buyer shall be considered in default and Seller’s obligation 139 to sell is terminated. Failure to Close due to lack of funds shall be considered default by Buyer. 140

3. Earnest Money. Buyer has paid or will pay within _______ days after the Binding Agreement Date to 141 _________________________________________________________________ (name of Holder) (“Holder”) located at 142 _________________________________________________________________ (address of Holder), an Earnest Money 143 deposit of $_______________ by check (OR __________________________________________) (“Earnest Money”). 144 A. Failure to Receive Earnest Money. In the event Earnest Money is not timely received by Holder or Earnest 145

Money check or other instrument is not honored for any reason by the bank upon which it is drawn, Holder shall 146 promptly notify Buyer and Seller of the Buyer's failure to deposit the agreed upon Earnest Money. Buyer shall then 147 have one (1) day to deliver Earnest Money in immediately available funds to Holder. In the event Buyer does not 148 deliver such funds, Seller shall have the right to terminate this Agreement by delivering to Buyer or Buyer's 149 representative written notice via the Notification form or equivalent written notice. In the event Buyer delivers the 150 Earnest Money in immediately available funds to Holder before Seller elects to terminate, Seller shall be deemed to 151 have waived his right to terminate, and the Agreement shall remain in full force and effect. 152

B. Handling of Earnest Money upon Receipt by Holder. Earnest Money is to be deposited promptly after the 153Binding Agreement Date or the agreed upon delivery date in this Earnest Money paragraph or as specified in the 154 Special Stipulations paragraph contained at paragraph 19 herein. Holder shall disburse Earnest Money only as 155 follows: 156

(a) at Closing to be applied as a credit toward Buyer’s Purchase Price; 157 (b) upon a written agreement signed by all parties having an interest in the funds; 158 (c) upon order of a court or arbitrator having jurisdiction over any dispute involving the Earnest Money;159(d) upon a reasonable interpretation of the Agreement; or 160 (e) upon the filing of an interpleader action with payment to be made to the clerk of the court having 161

jurisdiction over the matter. 162

DRAFT within two (2) days after such demand for compliance, Buyer shall be considered in default and Seller’s obligation

DRAFT within two (2) days after such demand for compliance, Buyer shall be considered in default and Seller’s obligation Failure to Close due to lack of funds shall be considered default by Buyer.

DRAFT Failure to Close due to lack of funds shall be considered default by Buyer.. Buyer has paid or wil

DRAFT . Buyer has paid or wil______________________________________

DRAFT ______________________________________________________________

DRAFT ____________________________________________________________________________________________________________________________

DRAFT _____________________________________________________________________________________________________________________________________________________________________ (address of Holder), an

DRAFT _________________________________________________________________ (address of Holder), andeposit of $_______________ by check (OR __________________________________________) (“Earnest Money”).

DRAFT deposit of $_______________ by check (OR __________________________________________) (“Earnest Money”).

Failure to Receive Earnest Money.

DRAFT Failure to Receive Earnest Money.Money check or

DRAFT Money check or other instr

DRAFT other instrument

DRAFT ument

promptly notify Buyer and Seller

DRAFT promptly notify Buyer and Sellerhave one (1) day to deliver

DRAFT have one (1) day to deliver deliver

DRAFT deliver such

DRAFT such funds, Seller shall have the right to terminate this Agreement

DRAFT funds, Seller shall have the right to terminate this Agreement

representative written notice

DRAFT representative written notice Earnest Money in immediately available funds to Holder before Seller elects to terminate, Seller shall be deemed to

DRAFT Earnest Money in immediately available funds to Holder before Seller elects to terminate, Seller shall be deemed to have waived his right to terminate, and the Agreement shall remain in full force and effect.

DRAFT have waived his right to terminate, and the Agreement shall remain in full force and effect.

B.

DRAFT B. H

DRAFT Handling of Earnest Money upon Receipt by Holder.

DRAFT andling of Earnest Money upon Receipt by Holder.

Binding Agreement Date or the agreed upon delivery date in this Earnest Money paragraph or as specified in the DRAFT

Binding Agreement Date or the agreed upon delivery date in this Earnest Money paragraph or as specified in the Special Stipulations parDRAFT

Special Stipulations parfollows:DRAFT

follows:

SPECIMEN

shall immediately notify Seller or Seller’s representative of having applied for the loan and provide

SPECIMEN

shall immediately notify Seller or Seller’s representative of having applied for the loan and provide nder’s name and contact information, and that Buyer has instructed Lender to order credit report and

SPECIMEN

nder’s name and contact information, and that Buyer has instructed Lender to order credit report and

represent to Seller

SPECIMENrepresent to Seller

all required Lender deposits, including appraisal cost and credit report, have been paid as evidenced by

SPECIMENall required Lender deposits, including appraisal cost and credit report, have been paid as evidenced by

letter from loan originator, etc.);

SPECIMENletter from loan originator, etc.);

Buyer has available funds to Close per estimates of Lender / loan originator.

SPECIMEN

Buyer has available funds to Close per estimates of Lender / loan originator. Buyer shall pursue qualification for and approval of the loan diligently and in good faith;

SPECIMEN

Buyer shall pursue qualification for and approval of the loan diligently and in good faith; iately provide requested documentation to Lender and/or loan

SPECIMEN

iately provide requested documentation to Lender and/or loan

Unless otherwise stated in this Agreement, Buyer represents that this loan is not contingent upon the lease

SPECIMEN

Unless otherwise stated in this Agreement, Buyer represents that this loan is not contingent upon the lease or sale of any other real property and the same shall not be used as

SPECIMEN

or sale of any other real property and the same shall not be used as the basis for loan denial; and

SPECIMEN

the basis for loan denial; andBuyer shall not intentionally make any material changes in Buyer’s financial condition which would

SPECIMEN

Buyer shall not intentionally make any material changes in Buyer’s financial condition which would adversely affect Buyer’s ability to obtain the Primary Loan or any other loan referenced herein.

SPECIMEN

adversely affect Buyer’s ability to obtain the Primary Loan or any other loan referenced herein.ly comply with 2.C.(1) and/or 2.C.(2) above and provide notice as required, Seller may

SPECIMEN

ly comply with 2.C.(1) and/or 2.C.(2) above and provide notice as required, Seller may make written demand for compliance via the Notification form or equivalent written notice. If Buyer does not

SPECIMEN

make written demand for compliance via the Notification form or equivalent written notice. If Buyer does not furnish Seller the requested documentation within two (2) d

SPECIMEN

furnish Seller the requested documentation within two (2) days after such demand for compliance, Buyer shall be

SPECIMEN

ays after such demand for compliance, Buyer shall be considered in default and Seller’s obligation to sell is terminated.

SPECIMEN

considered in default and Seller’s obligation to sell is terminated. THIS BOX MUST BE CHECKED TO BE PART OF THIS AGREEMENT.)

SPECIMEN

THIS BOX MUST BE CHECKED TO BE PART OF THIS AGREEMENT.)to close shall not be subject to any

SPECIMEN

to close shall not be subject to anythe right to obtain a loan. Buyer will furnish proof of available funds to close in the following manner:

SPECIMEN

the right to obtain a loan. Buyer will furnish proof of available funds to close in the following manner: _____________________________________ (e.g. bank statement, Lender’s com

SPECIMEN

_____________________________________ (e.g. bank statement, Lender’s comShould Buyer fail to do so, Seller may make written demand for compliance SPECIM

EN

Should Buyer fail to do so, Seller may make written demand for compliance via the Notification form or equivalent written notice. If Buyer does not furnish Seller with the requested noticeSPECIM

EN

via the Notification form or equivalent written notice. If Buyer does not furnish Seller with the requested noticewithin two (2) days after such demand for compliance, Buyer shall be considered in default and Seller’s obligation SPECIM

EN

within two (2) days after such demand for compliance, Buyer shall be considered in default and Seller’s obligation Failure to Close due to lack of funds shall be considered default by Buyer.SPECIM

EN

Failure to Close due to lack of funds shall be considered default by Buyer.l pay within _______ days after the Binding Agreement Date to SPECIM

EN

l pay within _______ days after the Binding Agreement Date to





Holder shall be reimbursed for, and may deduct from any funds interpleaded, its costs and expenses, including 163 reasonable attorney’s fees. The prevailing party in the interpleader action shall be entitled to collect from the other 164 party the costs and expenses reimbursed to Holder. No party shall seek damages from Holder (nor shall Holder be 165 liable for the same) for any matter arising out of or related to the performance of Holder’s duties under this Earnest 166 Money paragraph. Earnest Money shall not be disbursed prior to fourteen (14) days after deposit unless written 167 evidence of clearance by bank is provided. 168

4. Closing, Prorations, Special Assessments and Warranties Transfer. 169 A. Closing Date. This transaction shall be closed (“Closed”) (evidenced by delivery of warranty deed and payment of 170

Purchase Price, the “Closing”), and this Agreement shall expire, at 11:59 p.m. local time on the _______ day of 171 _________________________, __________(“Closing Date”), or on such earlier date as may be agreed to by the 172 parties in writing. Such expiration does not extinguish a party’s right to pursue remedies in the event of default. 173 Any extension of this date must be agreed to by the parties in writing via the Closing Date/Possession Date 174 Amendment or equivalent written agreement. 175 1. Possession. Possession of the Property is to be given (Select the appropriate boxes below. Unselected items 176

will not be part of this Agreement): 177 □ with delivery of warranty deed and payment of Purchase Price; 178 OR 179 □ on _____________________________________________ at __________ o’clock □ am/ □ pm, local time; 180

□ Occupancy Agreement attached which addresses issues including but not limited to: occupancy term, 181 compensation due, legal relationships of the parties, condition of the Property upon transfer, utilities, 182 and property insurance. 183

B. Prorations. Real estate taxes, rents, dues, maintenance fees, and association fees on said Property for the calendar 184 year in which the sale is Closed shall be prorated as of the Closing Date. In the event of a change or reassessment of 185 taxes for the calendar year after Closing, the parties agree to pay their recalculated share. Real estate taxes, rents, 186 dues, maintenance fees, and association fees for prior years and roll back taxes, if any, will be paid by Seller. 187

C. Special Assessments. Special assessments approved or levied prior to the Closing Date shall be paid by the Seller 188at or prior to Closing unless otherwise agreed as follows: 189 _____________________________________________________________________________________________. 190

D. Warranties Transfer. Seller, at the option of Buyer and at Buyer’s cost, agrees to transfer Seller’s interest in any 191manufacturer’s warranties, service contracts, termite bond or treatment guarantee and/or similar warranties which by 192 their terms may be transferable to Buyer. 193

E. Association Fees. Buyer shall be responsible for all homeowner or condominium association transfer fees, related 194administration fees (not including statement of accounts), capital expenditures/contributions incurred due to the 195 transfer of Property and/or like expenses which are required by the association, property management company 196 and/or the bylaws, declarations or covenants for the Property (unless otherwise specifically addressed herein and/or 197 unless specifically chargeable to Seller under applicable bylaws, declarations, and/or neighborhood covenants). 198

5. Title and Conveyance. 199 A. Seller warrants that at the time of Closing, Seller will convey or cause to be conveyed to Buyer or Buyer’s assign(s) 200

good and marketable title to said Property by general warranty deed, subject only to: 201 (1) zoning; 202

(2) setback requirements and general utility, sewer, and drainage easements of record on the Binding 203 Agreement Date upon which the improvements do not encroach; 204

(3) subdivision and/or condominium declarations, covenants, restrictions, and easements of record on the 205 Binding Agreement Date; and 206

(4) leases and other encumbrances specified in this Agreement. 207 If title examination, closing or loan survey pursuant to Tenn. Code Ann. § 62-18-126, boundary line survey, or other 208 information discloses material defects, Buyer may, at Buyer's discretion: 209

(1) accept the Property with the defects OR 210 (2) require Seller to remedy such defects prior to the Closing Date. Buyer shall provide Seller with written 211

notice of such defects via the Notification form or equivalent written notice. If defects are not remedied 212 prior to Closing Date, Buyer and Seller may elect to extend the Closing Date by mutual written agreement 213 evidenced by the Closing Date/Possession Amendment form or other written equivalent. If defects are not 214 remedied by the Closing Date or any mutually agreed upon extension thereof, this Agreement shall 215 terminate, and Buyer shall be entitled to refund of Earnest Money. 216

Good and marketable title as used herein shall mean title which a title insurance company licensed to do business in 217

DRAFT (not including statement of accounts)

DRAFT (not including statement of accounts)transfer of Property and/or like expenses which are required by the association, property management company

DRAFT transfer of Property and/or like expenses which are required by the association, property management company bylaws, declarations or covenants for the Property (unless otherwise specifically ad

DRAFT bylaws, declarations or covenants for the Property (unless otherwise specifically adunless specifically chargeable to Seller under applicable bylaws

DRAFT unless specifically chargeable to Seller under applicable bylawsTitle and Conveyance.

DRAFT Title and Conveyance.

Seller warrants that at the time of Closing, Seller will convey or cause to be conveyed to

DRAFT Seller warrants that at the time of Closing, Seller will convey or cause to be conveyed to good and marketable title to said Property by general warranty deed, subject only to:

DRAFT good and marketable title to said Property by general warranty deed, subject only to:

zoning;

DRAFT zoning;

(2)

DRAFT (2) setback requirements and general utility, sewer, and drainage easements of record on the Binding

DRAFT setback requirements and general utility, sewer, and drainage easements of record on the Binding Agreement Date upon which t

DRAFT Agreement Date upon which t

(3)

DRAFT (3) subdivision and/or condominium declarations, covenants, restrictions, and easements of record on the

DRAFT subdivision and/or condominium declarations, covenants, restrictions, and easements of record on the Binding Agreement Date; and

DRAFT Binding Agreement Date; and

(4)

DRAFT (4) leases and other encumbrances specified in this Agreement.

DRAFT leases and other encumbrances specified in this Agreement.

If title examination, cl

DRAFT If title examination, clinformation discloses material defects, Buyer may, at Buyer's discretion:

DRAFT

information discloses material defects, Buyer may, at Buyer's discretion:(1)DRAFT

(1)(2)DRAFT

(2)

SPECIMEN

(evidenced by delivery of warranty deed and payment of

SPECIMEN

(evidenced by delivery of warranty deed and payment of Purchase Price, the “Closing”), and this Agreement shall expire, at 11:59 p.m. local time on the _______ day of

SPECIMENPurchase Price, the “Closing”), and this Agreement shall expire, at 11:59 p.m. local time on the _______ day of

agreed to by the

SPECIMENagreed to by the

parties in writing. Such expiration does not extinguish a party’s right to pursue remedies in the event of default.

SPECIMENparties in writing. Such expiration does not extinguish a party’s right to pursue remedies in the event of default.

Any extension of this date must be agreed to by the parties in writing via the Closing Date/Possession Date

SPECIMENAny extension of this date must be agreed to by the parties in writing via the Closing Date/Possession Date

Select the appropriate boxes below. Unselected items

SPECIMEN

Select the appropriate boxes below. Unselected items

_____________________________________________ at __________ o’clock

SPECIMEN

_____________________________________________ at __________ o’clock □

SPECIMEN

□ am/

SPECIMEN

am/ Occupancy Agreement attached which addresses issues including but not limited to: occupancy term,

SPECIMEN

Occupancy Agreement attached which addresses issues including but not limited to: occupancy term, conditio

SPECIMEN

condition of the P

SPECIMEN

n of the Property upon transfer, utilities,

SPECIMEN

roperty upon transfer, utilities,

. Real estate taxes, rents, dues, maintenance fees, and association fees on said Property for the calendar

SPECIMEN

. Real estate taxes, rents, dues, maintenance fees, and association fees on said Property for the calendar Closing Date. In the event of a change or reassessment of

SPECIMEN

Closing Date. In the event of a change or reassessment of taxes for the calendar year after Closing, the parties agree to pay their recalculated share. Real estate taxes, rents,

SPECIMEN

taxes for the calendar year after Closing, the parties agree to pay their recalculated share. Real estate taxes, rents, dues, maintenance fees, and association fees for prior years and roll back ta

SPECIMEN

dues, maintenance fees, and association fees for prior years and roll back taxes, if any, will be paid by Seller.

SPECIMEN

xes, if any, will be paid by Seller.Special assessments approved or levied prior to the Closing Date shall be paid by the Seller

SPECIMEN

Special assessments approved or levied prior to the Closing Date shall be paid by the Seller at or prior to Closing unless otherwise agreed as follows:

SPECIMEN

at or prior to Closing unless otherwise agreed as follows:__________________________________________

SPECIMEN

_____________________________________________________________________________________________.

SPECIMEN

___________________________________________________._____________________________________________________________________________________________.__________________________________________

SPECIMEN

_____________________________________________________________________________________________.__________________________________________Seller, at the option of Buyer and at Buyer’s cost, agrees to transfer Seller’s interest in any

SPECIMEN

Seller, at the option of Buyer and at Buyer’s cost, agrees to transfer Seller’s interest in any manufacturer’s warranties, service contracts, termite bond or treatment guarantee

SPECIMEN

manufacturer’s warranties, service contracts, termite bond or treatment guarantee their terms may be transferable to Buyer. SPECIM

EN

their terms may be transferable to Buyer.Buyer shall be responsible for all homeowner or condominium association transfer fees, related SPECIM

EN

Buyer shall be responsible for all homeowner or condominium association transfer fees, related (not including statement of accounts)SPECIM

EN

(not including statement of accounts)transfer of Property and/or like expenses which are required by the association, property management company SPECIM

EN

transfer of Property and/or like expenses which are required by the association, property management company





Tennessee will insure at its regular rates, subject only to standard exceptions. The title search or abstract used for 218 the purpose of evidencing good and marketable title must be acceptable to the title insurance agent and the issuing 219 title insurance company. Seller agrees to execute such appropriate affidavits and instruments as may be required by 220 the issuing title insurance company. 221

B. Deed. Deed is to be made in the name of ___________________________________________________________. 222 The manner in which Buyer takes title determines ownership and survivorship rights. It is the Buyer’s responsibility 223 to consult the closing agency or attorney prior to Closing. 224

6. Seller’s Property Disclosure. Pursuant to the requirements of the Tennessee Residential Property Condition Disclosure 225 Act at Tenn. Code Ann. § 66-5-201, et seq. as amended, a Property Condition Disclosure Statement, Exemption, or if 226 Buyer waives Disclosure, a Disclaimer, has been or will be provided prior to the Binding Agreement Date. 227

7. Lead-Based Paint Disclosure (Select the appropriate box. Items not selected are not part of this Agreement). 228 □ does not apply. □ does apply (Property built prior to 1978 – see attached Lead-Based Paint Disclosure). 229

8. Inspections. 230 A. Buyer’s Right to Make Inspection(s). All inspections/reports, including but not limited to the home inspection 231

report, those required/recommended in the home inspection report, Wood Destroying Insect Infestation 232 Inspection Report, septic inspection and well water test, are to be made at Buyer's expense, unless otherwise 233 stipulated in this Agreement. The parties hereto agree that in the event Buyer shall elect to contract with a third 234 party inspector to obtain a “Home Inspection” as defined by Tennessee law, said inspection shall be conducted by a 235 licensed Home Inspector. However, nothing in this paragraph shall preclude Buyer from conducting any inspections 236 on his/her own behalf, nor shall it preclude Buyer from retaining a qualified (and if required by law, licensed) 237 professional to conduct inspections of particular systems or issues within such professional’s expertise or licensure, 238 including but not limited to inspection of the heating/cooling systems, electrical systems, foundation, etc., so long as 239 said professional is not in violation of Tenn. Code Ann. § 62-6-301, et seq. as may be amended. Seller shall cause 240 all utility services and any pool, spa, and similar items to be operational so that Buyer may complete all 241 inspections and tests under this Agreement. Buyer agrees to indemnify Seller from the acts of himself, his 242 inspectors and/or representatives in exercising his rights under this Purchase and Sale Agreement. Buyer’s 243 obligations to indemnify Seller shall also survive the termination of this Agreement by either party, which shall 244 remain enforceable. Buyer waives any objections to matters of purely cosmetic nature (e.g. decorative, color or 245 finish items) disclosed by inspection. Buyer has no right to require repairs or alterations purely to meet 246 current building codes, unless required to do so by governmental authorities. In the event Buyer fails to timely 247 make such inspections and respond within said timeframe as described herein, the Buyer shall have forfeited any 248 rights provided under this Paragraph 8, and in such case shall accept the Property in its current condition, 249 normal wear and tear excepted. 250

B. Initial Inspections. Buyer and/or his inspectors/representatives shall have the right and responsibility to enter the 251 Property during normal business hours, for the purpose of making inspections and/or tests of the Property. Buyer 252 and/or his inspectors/representatives shall have the right to perform a visual analysis of the condition of the 253 Property, any reasonably accessible installed components, the operation of the Property’s systems, including any 254 controls normally operated by Seller including the following components: heating systems, cooling systems, 255 electrical systems, plumbing systems, structural components, foundations, roof coverings, exterior and interior 256 components, any other site aspects that affect the Property, and environmental issues. 257

C. Wood Destroying Insect Infestation Inspection Report. If desired by Buyer or required by Buyer’s Lender, it 258 shall be Buyer’s responsibility to obtain at Buyer’s expense a Wood Destroying Insect Infestation Inspection Report 259 (the “Report”), which shall be made by a Tennessee licensed and chartered pest control operator. 260 The foregoing expense may be subject to governmental guidelines relating to VA Loans (See VA/FHA Loan 261 Addendum if applicable). 262 The inspection shall include each dwelling, garage, and other permanent structure on the Property excluding 263 _____________________________________________________ for evidence of active infestation and/or damage. 264 Buyer shall cause such Report to be delivered to Seller simultaneously with any repairs requested by the Buyer or 265 the end of the Inspection Period, whichever is earlier. If the Report indicates evidence of active infestation, Seller 266 agrees to treat infestation at Seller’s expense and provide documentation of the treatment to Buyer prior to Closing. 267 Requests for repair of damage, if any, should be addressed in the Buyer's request for repairs pursuant to 268 Subparagraph 8.D., Buyer’s Inspection and Resolution below. 269

D. Buyer’s Inspection and Resolution. Within ________ days after the Binding Agreement Date (“Inspection 270 Period”), Buyer shall cause to be conducted any inspection provided for herein, including but not limited to the 271 Wood Destroying Insect Infestation Inspection Report AND shall provide written notice of such to Seller as 272 described below. In said notice Buyer shall either: 273

DRAFT . Buyer and/or his inspectors/representatives shall have the right and responsibility to enter the

DRAFT . Buyer and/or his inspectors/representatives shall have the right and responsibility to enter the Property during normal business hours, for the purpose of making inspections and/or tests of the Property. Buyer

DRAFT Property during normal business hours, for the purpose of making inspections and/or tests of the Property. Buyer and/or his inspectors/re

DRAFT and/or his inspectors/representatives shall have the right to perform a visual analysis of the condition of the

DRAFT presentatives shall have the right to perform a visual analysis of the condition of the Property, any reasonably accessible installed components, the operation of the Property’s systems, including any

DRAFT Property, any reasonably accessible installed components, the operation of the Property’s systems, including any controls normally operated by Seller including the foll

DRAFT controls normally operated by Seller including the follelectrical systems, plumbing systems, structural components, foundations, roof coverings, exterior and interior

DRAFT electrical systems, plumbing systems, structural components, foundations, roof coverings, exterior and interior components, any other site aspects that affect the Property, and environmental issues.

DRAFT components, any other site aspects that affect the Property, and environmental issues.

od Destroying Insect Infestation Inspection Report.

DRAFT od Destroying Insect Infestation Inspection Report.

shall be Buyer’s responsibility to obtain

DRAFT shall be Buyer’s responsibility to obtain (the “Report”), which shall be mad

DRAFT (the “Report”), which shall be madThe foregoing expense may be subject to governmental guidelines relating to VA Loans (See VA/FHA Loan

DRAFT The foregoing expense may be subject to governmental guidelines relating to VA Loans (See VA/FHA Loan Addendum if applicable)

DRAFT Addendum if applicable)The inspection shall include each dwelling, garage, and other per

DRAFT The inspection shall include each dwelling, garage, and other per_____________________________________________________ for evidence of active infestation and/or damage.

DRAFT _____________________________________________________ for evidence of active infestation and/or damage. Buyer shall cause such Report to be delivereDRAFT

Buyer shall cause such Report to be deliverethe end of the Inspection Period, whichever is earlierDRAFT

the end of the Inspection Period, whichever is earlieragrees to treat infestation at Seller’s expense and provide documentation of the treatment to Buyer prior to Closing. DRAFT

agrees to treat infestation at Seller’s expense and provide documentation of the treatment to Buyer prior to Closing. Requests for rDRAFT

Requests for r

SPECIMEN

Pursuant to the requirements of the Tennessee Residential Property Condition Disclosure

SPECIMEN

Pursuant to the requirements of the Tennessee Residential Property Condition Disclosure tion Disclosure Statement, Exemption, or if

SPECIMENtion Disclosure Statement, Exemption, or if

Buyer waives Disclosure, a Disclaimer, has been or will be provided prior to the Binding Agreement Date.

SPECIMENBuyer waives Disclosure, a Disclaimer, has been or will be provided prior to the Binding Agreement Date.

. Items not selected are not part of this Agre

SPECIMEN. Items not selected are not part of this Agreement).

SPECIMENement).

Based Paint Disclosure).

SPECIMENBased Paint Disclosure).

All inspections/reports, including but not limited to the home inspection

SPECIMEN

All inspections/reports, including but not limited to the home inspection those required/recommended in the home inspection report, Wood Destroying Insect Infestation

SPECIMEN

those required/recommended in the home inspection report, Wood Destroying Insect Infestation Inspection Report, septic inspection and well water test, are to be made at Buyer's expense, unless otherwise

SPECIMEN

Inspection Report, septic inspection and well water test, are to be made at Buyer's expense, unless otherwise e that in the event Buyer shall elect to contract with a third

SPECIMEN

e that in the event Buyer shall elect to contract with a third party inspector to obtain a “Home Inspection” as defined by Tennessee law, said inspection shall be conducted by a

SPECIMEN

party inspector to obtain a “Home Inspection” as defined by Tennessee law, said inspection shall be conducted by a licensed Home Inspector. However, nothing in this paragraph shall preclude Bu

SPECIMEN

licensed Home Inspector. However, nothing in this paragraph shall preclude Buyer from conducting any inspections

SPECIMEN

yer from conducting any inspections on his/her own behalf, nor shall it preclude Buyer from retaining a qualified (and if required by law, licensed)

SPECIMEN

on his/her own behalf, nor shall it preclude Buyer from retaining a qualified (and if required by law, licensed) professional to conduct inspections of particular systems or issues within such professional’s expertise or

SPECIMEN

professional to conduct inspections of particular systems or issues within such professional’s expertise orincluding but not limited to inspection of the heating/cooling systems, electrical systems, foundation, etc., so long as

SPECIMEN

including but not limited to inspection of the heating/cooling systems, electrical systems, foundation, etc., so long as said professional is not in violation of Tenn. Code Ann. § 62

SPECIMEN

said professional is not in violation of Tenn. Code Ann. § 62-

SPECIMEN

-6

SPECIMEN

6-

SPECIMEN

-301, et seq. as may be amended.

SPECIMEN

301, et seq. as may be amended. lity services and any pool, spa, and similar items to be operational so that Buyer may complete all

SPECIMEN

lity services and any pool, spa, and similar items to be operational so that Buyer may complete all Buyer agrees to indemnify Seller from the acts of himself, his

SPECIMEN

Buyer agrees to indemnify Seller from the acts of himself, his his rights under this Purchase and Sale Agreement. Buyer’s

SPECIMEN

his rights under this Purchase and Sale Agreement. Buyer’s obligations to indemnify Seller shall also survive the termination of this Agreement by either party, which shall

SPECIMEN

obligations to indemnify Seller shall also survive the termination of this Agreement by either party, which shall Buyer waives any objections to matters of purely cosmetic natu

SPECIMEN

Buyer waives any objections to matters of purely cosmetic natufinish items) disclosed by inspection. Buyer has no right to require repairs or alterations purely to meet

SPECIMEN

finish items) disclosed by inspection. Buyer has no right to require repairs or alterations purely to meet current building codes, unless required to do so by governmental authorities.

SPECIMEN

current building codes, unless required to do so by governmental authorities. such inspections and respond within said timeframe as described herein, the Buyer shall have forfeited any SPECIM

EN

such inspections and respond within said timeframe as described herein, the Buyer shall have forfeited any rights provided under this Paragraph 8, and in such case shall accept the Property in its current condition, SPECIM

EN

rights provided under this Paragraph 8, and in such case shall accept the Property in its current condition,

. Buyer and/or his inspectors/representatives shall have the right and responsibility to enter the SPECIMEN

. Buyer and/or his inspectors/representatives shall have the right and responsibility to enter the Property during normal business hours, for the purpose of making inspections and/or tests of the Property. Buyer SPECIM

EN

Property during normal business hours, for the purpose of making inspections and/or tests of the Property. Buyer





(1) furnish Seller with a list of written specified objections and immediately terminate this Agreement via the 274 Notification form or equivalent written notice, provided Buyer has conducted a Home Inspection or other 275 inspection(s) as allowed herein, and in good faith discovers matters objectionable to Buyer within the scope 276 of such inspection(s). As additional consideration for Buyer’s right to terminate, Buyer shall deliver to 277 Seller or Seller’s representative, upon Seller’s request, a copy of all inspection reports. All Earnest Money 278 shall be returned to Buyer upon termination. 279

OR 280 (2) accept the Property in its present “AS IS” condition with any and all faults and no warranties expressed or 281

implied via the Notification form or equivalent written notice. Seller has no obligation to make repairs. 282 OR 283

(3) furnish Seller a written list of items which Buyer requires to be repaired and/or replaced with like quality or 284 value in a professional and workmanlike manner. Seller shall have the right to request any supporting 285 documentation that substantiates any item listed. 286

a. Resolution Period. Seller and Buyer shall then have a period of ______ days following receipt of 287 the above stated written list (“Resolution Period”) to reach a mutual agreement as to the items to 288 be repaired or replaced with like quality or value by Seller, which shall be evidenced by the 289 Repair / Replacement Amendment or written equivalent(s). The parties agree to negotiate 290 repairs in good faith during the Resolution Period. In the event Seller and Buyer do not reach a 291 mutual written resolution during such Resolution Period or a mutually agreeable written extension 292 thereof as evidenced in an Amendment to this Agreement signed by both parties within said period 293 of time, this Agreement is hereby terminated. If terminated, Buyer is entitled to a refund of the 294 Earnest Money. 295

□ E. Waiver of All Inspections. THIS BOX MUST BE CHECKED TO BE PART OF THIS AGREEMENT. 296 Buyer, having been advised of the benefits of inspections, waives any and all Inspection Rights under this 297 Paragraph 8 (including but not limited to the Wood Destroying Insect Infestation Inspection Report). 298

9. Final Inspection. Buyer and/or his inspectors/representatives shall have the right to conduct a final inspection of 299 Property on the Closing Date or within ___ day(s) prior to the Closing Date only to confirm Property is in the same or 300 better condition as it was on the Binding Agreement Date, normal wear and tear excepted, and to determine that all 301 repairs/replacements agreed to during the Resolution Period, if any, have been completed. Property shall remain in such 302 condition until Closing at Seller’s expense. Closing of this sale constitutes acceptance of Property in its condition as of 303 the time of Closing, unless otherwise noted in writing. 304

10. Buyer’s Additional Due Diligence Options. If any of the matters below are of concern to Buyer, Buyer should address 305the concern by specific contingency in the Special Stipulations Paragraph of this Agreement. 306 A. Survey and Flood Certification. Survey Work and Flood Certifications are the best means of identifying boundary 307

lines and/or encroachments and easements or flood zone classifications. Buyer may obtain a Mortgage Inspection or 308 Boundary Line Survey and Flood Zone Certifications. 309

B. Insurability. Many different issues can affect the insurability and the rates of insurance for property. These include 310 factors such as changes in the Flood Zone Certifications, changes to the earthquake zones maps, the insurability of 311 the buyer, and previous claims made on the Property. It is the right and responsibility of Buyer to determine the 312 insurability, coverage and the cost of insuring the Property. It is also the responsibility of Buyer to determine 313 whether any exclusions will apply to the insurability of said Property. 314

C. Water Supply. The system may or may not meet state and local requirements. It is the right and responsibility of 315 Buyer to determine the compliance of the system with state and local requirements. [For additional information on 316 this subject, request the “Water Supply and Waste Disposal Notification” form.] 317

D. Waste Disposal. The system may or may not meet state and local requirements. It is the right and responsibility of 318 Buyer to determine the compliance of the system with state and local requirements. In addition, Buyer may, for a 319 fee, obtain a septic system inspection letter from the Tennessee Department of Environment and Conservation, 320 Division of Ground Water Protection. [For additional information on this subject, request the “Water Supply and 321 Waste Disposal Notification” form.] 322

E. Title Exceptions. At Closing, the general warranty deed will be subject to subdivision and/or condominium 323 declarations, covenants, restrictions and easements of record, which may impose obligations and may limit the use 324 of the Property by Buyer. 325

11. Disclaimer. It is understood and agreed that the real estate firms and real estate licensee(s) representing or assisting 326 Seller and/or Buyer and their brokers (collectively referred to as “Brokers”) are not parties to this Agreement and do not 327 have or assume liability for the performance or nonperformance of Seller or Buyer. Buyer and Seller agree that Brokers 328 shall not be responsible for any of the following, including but not limited to, those matters which could have been 329

DRAFT the concern by specific contingency in the Special Stipulations Paragraph of this Agreement.

DRAFT the concern by specific contingency in the Special Stipulations Paragraph of this Agreement.Survey and Flood Certification.

DRAFT Survey and Flood Certification.

DRAFT Survey Work and Flood Certifica

DRAFT Survey Work and Flood Certificalines and/or encroachments and easements or flood zone classifications. Buyer may obtain a Mortgage Inspection or

DRAFT lines and/or encroachments and easements or flood zone classifications. Buyer may obtain a Mortgage Inspection or Boundary Line Survey and Flood Zone Certifications.

DRAFT Boundary Line Survey and Flood Zone Certifications.Many different issue

DRAFT Many different issues can affect the insurability and the rates of insurance for property. These include

DRAFT s can affect the insurability and the rates of insurance for property. These include

factors such as changes in the Flood Zone Certifications, changes to the earthquake zones maps, the insurability of

DRAFT factors such as changes in the Flood Zone Certifications, changes to the earthquake zones maps, the insurability of the buyer, and previous claims made on the Property.

DRAFT the buyer, and previous claims made on the Property. insurability, coverage and the cost of insuring the Property. It is also the responsibility of Buyer to determine

DRAFT insurability, coverage and the cost of insuring the Property. It is also the responsibility of Buyer to determine whether any exclusions will apply to the insurability of said Property

DRAFT whether any exclusions will apply to the insurability of said Property

r Supply.

DRAFT r Supply.

DRAFT The system may or may not meet state and local requirements. It is the right and responsibility of


Buyer to determine the compliance of the system with state and local requirements. [For additional information on

DRAFT Buyer to determine the compliance of the system with state and local requirements. [For additional information on this subject, request the “Wat

DRAFT this subject, request the “Wat

D.

DRAFT D. Waste Disposal.

DRAFT Waste Disposal. The system may or may not meet state and local requirements. It is the right and responsibility of


Buyer to determine the compliance of the system with state and local requirements. In

DRAFT Buyer to determine the compliance of the system with state and local requirements. Infee, obtain a septic system inspection letter from the Tennessee Department of Environment and Conservation,

DRAFT fee, obtain a septic system inspection letter from the Tennessee Department of Environment and Conservation, Division of Ground Water Protection. [For additional information on this subject, request the “Water Supply and DRAFT

Division of Ground Water Protection. [For additional information on this subject, request the “Water Supply and Waste DRAFT

Waste Disposal Notification” form.]DRAFT

Disposal Notification” form.]E.DRAFT

E. Title Exceptions.DRAFT

Title Exceptions.declarations, covenants, restrictions and easements of record, which may impose obligations and may limit the use DRAFT

declarations, covenants, restrictions and easements of record, which may impose obligations and may limit the use

SPECIMEN

accept the Property in its present “AS IS” condition with any and all faults and no warranties expressed or

SPECIMEN

accept the Property in its present “AS IS” condition with any and all faults and no warranties expressed or . Seller has no obligation to make repairs.

SPECIMEN. Seller has no obligation to make repairs.

furnish Seller a written list of items which Buyer requires to be repaired and/or replaced with like quality or

SPECIMENfurnish Seller a written list of items which Buyer requires to be repaired and/or replaced with like quality or

right to request any supporting

SPECIMENright to request any supporting

Resolution Period. Seller and Buyer shall then have a period of ______ days following receipt of

SPECIMEN

Resolution Period. Seller and Buyer shall then have a period of ______ days following receipt of the above stated written list (“Resolution Period”) to reach a mutual agr

SPECIMEN

the above stated written list (“Resolution Period”) to reach a mutual agreement as to the items to

SPECIMEN

eement as to the items to be repaired or replaced with like quality or value by Seller, which shall be evidenced by the

SPECIMEN

be repaired or replaced with like quality or value by Seller, which shall be evidenced by the or written equivalent(s).

SPECIMEN

or written equivalent(s). The parties agree to negotiate

SPECIMEN

The parties agree to negotiate In the event Seller and Buyer do not reach a

SPECIMEN

In the event Seller and Buyer do not reach a mutual written resolution during such Resolution Period or a mutually agreeable written extension

SPECIMEN

mutual written resolution during such Resolution Period or a mutually agreeable written extension thereof as evidenced in an Amendment to this Agreement signed by both parties within said period

SPECIMEN

thereof as evidenced in an Amendment to this Agreement signed by both parties within said period this Agreement is hereby terminated. If terminated, Buyer is entitled to a refund of the

SPECIMEN

this Agreement is hereby terminated. If terminated, Buyer is entitled to a refund of the

E. Waiver of All Inspections. THIS BOX MUST BE CHECKED TO BE PART OF THIS AGREEMENT.

SPECIMEN

E. Waiver of All Inspections. THIS BOX MUST BE CHECKED TO BE PART OF THIS AGREEMENT.Buyer, having been advised of the benefits of inspections, waives any and all Inspection Rights under this

SPECIMEN

Buyer, having been advised of the benefits of inspections, waives any and all Inspection Rights under this Paragraph 8 (including but not limited to the Wood Destroying Insect Infestation Inspection Report).

SPECIMEN

Paragraph 8 (including but not limited to the Wood Destroying Insect Infestation Inspection Report). rs/representatives shall have the right to conduct a final inspection of

SPECIMEN

rs/representatives shall have the right to conduct a final inspection of prior to the Closing Date only to confirm Property is in the same or

SPECIMEN

prior to the Closing Date only to confirm Property is in the same or better condition as it was on the Binding Agreement Date, normal wear and tear excepted, and to determine that all

SPECIMEN

better condition as it was on the Binding Agreement Date, normal wear and tear excepted, and to determine that all repairs/replacements agreed to during the Resolution Period, if any, ha

SPECIMEN

repairs/replacements agreed to during the Resolution Period, if any, have been completed. Property shall remain in such

SPECIMEN

ve been completed. Property shall remain in such condition until Closing at Seller’s expense. Closing of this sale constitutes acceptance of Property in its condition as of

SPECIMEN

condition until Closing at Seller’s expense. Closing of this sale constitutes acceptance of Property in its condition as of the time of Closing, unless otherwise noted in writing.SPECIM

EN

the time of Closing, unless otherwise noted in writing.e Diligence Options. SPECIM

EN

e Diligence Options. If any of the matters below are of concern to Buyer, Buyer should address SPECIMEN

If any of the matters below are of concern to Buyer, Buyer should address the concern by specific contingency in the Special Stipulations Paragraph of this Agreement.SPECIM

EN

the concern by specific contingency in the Special Stipulations Paragraph of this Agreement.Survey Work and Flood CertificaSPECIM

EN

Survey Work and Flood Certificalines and/or encroachments and easements or flood zone classifications. Buyer may obtain a Mortgage Inspection or SPECIM

EN

lines and/or encroachments and easements or flood zone classifications. Buyer may obtain a Mortgage Inspection or





revealed through a survey, flood certification, title search or inspection of the Property; the insurability of the Property or 330 cost to insure the Property; for the condition of the Property, any portion thereof, or any item therein; for any geological 331 issues present on the Property; for any issues arising out of the failure to physically inspect Property prior to entering 332 into this Agreement and/or Closing; for the necessity or cost of any repairs to the Property; for hazardous or toxic 333 materials; for the tax or legal consequences of this transaction; for the availability, capability, and/or cost of utility, 334 sewer, septic, or community amenities; for any proposed or pending condemnation actions involving Property; for 335 applicable boundaries of school districts or other school information; for the appraised or future value of the Property; 336 for square footage or acreage of the Property; for any condition(s) existing off the Property which may affect the 337 Property; for the terms, conditions, and availability of financing; and/or for the uses and zoning of the Property whether 338 permitted or proposed. Buyer and Seller acknowledge that Brokers are not experts with respect to the above matters and 339 that they have not relied upon any advice, representations or statements of Brokers (including their firms and affiliated 340 licensees) and waive and shall not assert any claims against Brokers (including their firms and affiliated licensees) 341 involving same. Buyer and Seller understand that it has been strongly recommended that if any of these or any other 342 matters concerning the Property are of concern to them, that they secure the services of appropriately credentialed 343 experts and professionals of Buyer’s or Seller’s choice for the independent expert advice and counsel relative thereto. 344

12. Brokerage. As specified by separate agreement, Seller agrees to pay Listing Broker at Closing the agreed upon 345 compensation. The Listing Broker will direct the closing agency to pay the Selling Broker, from the compensation 346 received, an amount in accordance with the terms and provisions specified by separate agreement. The parties agree and 347 acknowledge that the Brokers involved in this transaction may receive compensation from more than one party. All 348 parties to this Agreement agree and acknowledge that any real estate firm involved in this transaction shall be deemed a 349 third party beneficiary only for the purposes of enforcing their commission rights, and as such, shall have the right to 350 maintain an action on this Agreement for any and all compensations due and any reasonable attorney’s fees and court 351 costs. 352

13. Default. Should Buyer default hereunder, the Earnest Money shall be forfeited as damages to Seller and shall be applied 353 as a credit against Seller’s damages. Seller may elect to sue, in contract or tort, for additional damages or specific 354 performance of the Agreement, or both. Should Seller default, Buyer’s Earnest Money shall be refunded to Buyer. In 355 addition, Buyer may elect to sue, in contract or tort, for damages or specific performance of this Agreement, or both. In 356 the event that any party hereto shall file suit for breach or enforcement of this Agreement (including suits filed after 357 Closing which are based on or related to the Agreement), the prevailing party shall be entitled to recover all costs of such 358 enforcement, including reasonable attorney’s fees. 359

14. Home Protection Plan. This is not a substitution for Home Inspection. Exclusions to coverage may apply. (Select the 360 appropriate box below. Items not selected are not part of this Agreement). 361 □ Home Protection Plan. ______________________________ to pay $________ for the purchase of a limited home 362

protection plan to be funded at Closing. Plan Provider: ________________________________________________. 363 Ordered by: ________________________________________________________________ (Real Estate Company) 364

□ Home Protection Plan waived. 365 15. Other Provisions. 366

A. Binding Effect, Entire Agreement, Modification, Assignment, and Binding Agreement Date. This Agreement 367 shall be for the benefit of, and be binding upon, the parties hereto, their heirs, successors, legal representatives and 368 assigns. This Agreement constitutes the sole and entire agreement between the parties hereto and no modification of 369 this Agreement shall be binding unless signed by all parties or assigns to this Agreement. No representation, 370 promise, or inducement not included in this Agreement shall be binding upon any party hereto. It is hereby agreed 371 by both Buyer and Seller that any real estate agent working with or representing either party shall not have the 372 authority to bind the Buyer, Seller or any assignee to any contractual agreement unless specifically authorized in 373 writing within this Agreement. Any assignee shall fulfill all the terms and conditions of this Agreement. The 374 parties hereby authorize either licensee to insert the time and date of receipt of the notice of acceptance of the final 375 offer and further agree to be bound by such as the Binding Agreement Date following the signatory section of this 376 Agreement, or Counter Offer, if applicable. 377

B. Survival Clause. Any provision contained herein, which by its nature and effect is required to be performed after 378 Closing shall survive the Closing and delivery of the deed, and shall remain binding upon the parties to this 379 Agreement and shall be fully enforceable thereafter. 380

C. Governing Law and Venue. This Agreement is intended as a contract for the purchase and sale of real property 381 and shall be governed by and interpreted in accordance with the laws and in the courts of the State of Tennessee. 382

D. Time of Essence. Time is of the essence in this Agreement. 383 E. Terminology. As the context may require in this Agreement: (1) the singular shall mean the plural and vice versa; 384

(2) all pronouns shall mean and include the person, entity, firm or corporation to which they relate; (3) the masculine 385 shall mean the feminine and vice versa; and (4) the term day(s) used throughout this Agreement shall be deemed to 386

DRAFT protection plan to be funded at Closing. Plan Provider: ________________________________________________.

DRAFT protection plan to be funded at Closing. Plan Provider: ________________________________________________.________________________________________________________________ (Real Estate Company)

DRAFT ________________________________________________________________ (Real Estate Company)Home Protection Plan waived.

DRAFT Home Protection Plan waived.

Binding Effect, Entire Agreement, Modification, Assignment, and Binding Agreement Date.

DRAFT Binding Effect, Entire Agreement, Modification, Assignment, and Binding Agreement Date.

for the benefit of, and be binding upon, the parties hereto, their heirs, successors, legal representatives and

DRAFT for the benefit of, and be binding upon, the parties hereto, their heirs, successors, legal representatives and

assigns. This Agreement constitutes the sole and entire agreement between the parties hereto and no modification of

DRAFT assigns. This Agreement constitutes the sole and entire agreement between the parties hereto and no modification of this Agreement shall be bi

DRAFT this Agreement shall be binding unless signed by all parties or assigns to this Agreement. No representation,

DRAFT nding unless signed by all parties or assigns to this Agreement. No representation,

promise, or inducement not included in this Agreement shall be binding upon any party hereto.

DRAFT promise, or inducement not included in this Agreement shall be binding upon any party hereto. by both Buyer and Seller that any real estate agent work

DRAFT by both Buyer and Seller that any real estate agent workauthor

DRAFT authority to bind the Buyer,

DRAFT ity to bind the Buyer,

writing within this Agreement

DRAFT writing within this Agreementparties hereby authorize either licensee to insert the time and date of receipt of the notice of acceptance of the final

DRAFT parties hereby authorize either licensee to insert the time and date of receipt of the notice of acceptance of the final offer and further agree to be bound by such as the Binding Agreement Date following the signatory section o

DRAFT offer and further agree to be bound by such as the Binding Agreement Date following the signatory section oAgreement, or Counter Offer, if applicable.

DRAFT Agreement, or Counter Offer, if applicable.

B.DRAFT

B. Survival Clause.DRAFT

Survival Clause.Closing shall survive the Closing and delivery of the deed, and shall remain binding upDRAFT

Closing shall survive the Closing and delivery of the deed, and shall remain binding upAgreement and shall be fully enforceable thereafter.DRAFT

Agreement and shall be fully enforceable thereafter.C.DRAFT

C. Governing Law and Venue.DRAFT

Governing Law and Venue.

SPECIMEN

or other school information; for the appraised or future value of the Property;

SPECIMEN

or other school information; for the appraised or future value of the Property; for square footage or acreage of the Property; for any condition(s) existing off the Property which may affect the

SPECIMEN

for square footage or acreage of the Property; for any condition(s) existing off the Property which may affect the ancing; and/or for the uses and zoning of the Property whether

SPECIMENancing; and/or for the uses and zoning of the Property whether

permitted or proposed. Buyer and Seller acknowledge that Brokers are not experts with respect to the above matters and

SPECIMENpermitted or proposed. Buyer and Seller acknowledge that Brokers are not experts with respect to the above matters and

of Brokers (including their firms and affiliated

SPECIMENof Brokers (including their firms and affiliated

licensees) and waive and shall not assert any claims against Brokers (including their firms and affiliated licensees)

SPECIMENlicensees) and waive and shall not assert any claims against Brokers (including their firms and affiliated licensees)

f any of these or any other

SPECIMENf any of these or any other

matters concerning the Property are of concern to them, that they secure the services of appropriately credentialed

SPECIMEN

matters concerning the Property are of concern to them, that they secure the services of appropriately credentialed experts and professionals of Buyer’s or Seller’s choice for the independent expert advice and counsel relative

SPECIMEN

experts and professionals of Buyer’s or Seller’s choice for the independent expert advice and counsel relative thereto.

SPECIMEN

thereto.As specified by separate agreement, Seller agrees to pay Listing Broker at Closing the agreed upon

SPECIMEN

As specified by separate agreement, Seller agrees to pay Listing Broker at Closing the agreed upon compensation. The Listing Broker will direct the closing agency to pay the Selling Broker, from the compensation

SPECIMEN

compensation. The Listing Broker will direct the closing agency to pay the Selling Broker, from the compensation t in accordance with the terms and provisions specified by separate agreement. The parties agree and

SPECIMEN

t in accordance with the terms and provisions specified by separate agreement. The parties agree and acknowledge that the Brokers involved in this transaction may receive compensation from more than one party. All

SPECIMEN

acknowledge that the Brokers involved in this transaction may receive compensation from more than one party. All wledge that any real estate firm involved in this transaction shall be deemed a

SPECIMEN

wledge that any real estate firm involved in this transaction shall be deemed a third party beneficiary only for the purposes of enforcing their commission rights, and as such, shall have the right to

SPECIMEN

third party beneficiary only for the purposes of enforcing their commission rights, and as such, shall have the right to mpensations due and any reasonable attorney’s fees and court

SPECIMEN

mpensations due and any reasonable attorney’s fees and court

Should Buyer default hereunder, the Earnest Money shall be forfeited as damages to Seller and shall be applied

SPECIMEN

Should Buyer default hereunder, the Earnest Money shall be forfeited as damages to Seller and shall be applied as a credit against Seller’s damages. Seller may elect to sue,

SPECIMEN

as a credit against Seller’s damages. Seller may elect to sue, in contract or tort, for additional damages or specific

SPECIMEN

in contract or tort, for additional damages or specific performance of the Agreement, or both. Should Seller default, Buyer’s Earnest Money shall be refunded to Buyer. In

SPECIMEN

performance of the Agreement, or both. Should Seller default, Buyer’s Earnest Money shall be refunded to Buyer. In addition, Buyer may elect to sue, in contract or tort, for damages or specific per

SPECIMEN

addition, Buyer may elect to sue, in contract or tort, for damages or specific perthe event that any party hereto shall file suit for breach or enforcement of this Agreement (including suits filed after

SPECIMEN

the event that any party hereto shall file suit for breach or enforcement of this Agreement (including suits filed after Closing which are based on or related to the Agreement), the prevailing party shall be entitle

SPECIMEN

Closing which are based on or related to the Agreement), the prevailing party shall be entitleenforcement, including reasonable attorney’s fees.

SPECIMEN

enforcement, including reasonable attorney’s fees.a substitution for Home Inspection. Exclusions to coverage may apply. SPECIM

EN

a substitution for Home Inspection. Exclusions to coverage may apply. appropriate box below. Items not selected are not SPECIM

EN

appropriate box below. Items not selected are not part of this Agreement).SPECIMEN

part of this Agreement).. ______________________________ to pay $________ for the purchase of a limited home SPECIM

EN

. ______________________________ to pay $________ for the purchase of a limited home protection plan to be funded at Closing. Plan Provider: ________________________________________________.SPECIM

EN

protection plan to be funded at Closing. Plan Provider: ________________________________________________.________________________________________________________________ (Real Estate Company)SPECIM

EN

________________________________________________________________ (Real Estate Company)





be calendar day(s) ending at 11:59 p.m. local time unless otherwise specified in this Agreement. Local time shall be 387 determined by the location of Property. In the event a performance deadline, other than the Closing Date (as 388 defined in paragraph 4 herein), Date of Possession (as defined in paragraph 4 herein), Completion of Repair 389 Deadline (as defined in the Repair/Replacement Amendment), and Offer Expiration Date (as defined in paragraph 390 20 herein), occurs on a Saturday, Sunday or legal holiday, the performance deadline shall extend to the next 391 following business day. Holidays as used herein are those days deemed federal holidays pursuant to 5 U.S.C. § 392 6103. In calculating any time period under this Agreement, the commencement shall be the day following the initial 393 date (e.g. Binding Agreement Date). 394

F. Responsibility to Cooperate. Buyer and Seller agree to timely take such actions and produce, execute, and/or 395 deliver such information and documentation as is reasonably necessary to carry out the responsibilities and 396 obligations of this Agreement. Except as to matters which are occasioned by clerical errors or omissions or 397 erroneous information, the approval of the closing documents by the parties shall constitute their approval of any 398 differences between this Agreement and the Closing. Buyer and Seller agree that if requested after Closing, they 399 will correct any documents and pay any amounts due where such corrections or payments are appropriate by reason 400 of mistake, clerical errors or omissions, or the result of erroneous information. 401

G. Notices. Except as otherwise provided herein, all notices and demands required or permitted hereunder shall be in 402 writing and delivered either (1) in person; (2) by a prepaid overnight delivery service; (3) by facsimile transmission 403 (FAX); (4) by the United States Postal Service, postage prepaid, registered or certified, return receipt requested; or 404 (5) Email. NOTICE shall be deemed to have been given as of the date and time it is actually received. Receipt of 405 notice by the real estate licensee or their Broker assisting a party as a client or customer shall be deemed to be notice 406 to that party for all purposes under this Agreement as may be amended, unless otherwise provided in writing. 407

H. Risk of Loss. The risk of hazard or casualty loss or damage to Property shall be borne by the Seller until transfer of 408 title. If casualty loss prior to Closing exceeds 10% of the Purchase Price, Seller or Buyer may elect to terminate this 409 Agreement with a refund of Earnest Money to Buyer. 410

I. Equal Housing. This Property is being sold without regard to race, color, sex, religion, handicap, familial status, or 411 national origin. 412

J. Severability. If any portion or provision of this Agreement is held or adjudicated to be invalid or unenforceable for 413 any reason, each such portion or provision shall be severed from the remaining portions or provisions of this 414 Agreement, and the remaining portions or provisions shall be unaffected and remain in full force and effect. 415

K. Contract Construction. This Agreement or any uncertainty or ambiguity herein shall not be construed against any 416 party but shall be construed as if all parties to this Agreement jointly prepared this Agreement. 417

L. Other. In further consideration of Buyer’s right to legally, properly and in good faith invoke a right to terminate 418 this Agreement pursuant to any specific Buyer contingency as stated herein, Buyer agrees, upon Seller’s request, to 419 provide Seller or Seller’s representative with copies of any supporting documentation which supports Buyer’s right 420 to exercise said contingency, the sufficiency and adequacy of said additional consideration being acknowledged. 421 Any such supporting documents shall be provided for Seller’s benefit only and Seller shall not disseminate the same 422 to third parties. However, Buyer shall not be required to provide any documents to Seller in violation of any 423 confidentiality agreement or copyright protection laws, if applicable. 424

16. Seller’s Additional Obligations. If Seller has any knowledge of an exterior injection well and/or a percolation test or 425 soil absorption rate on the Property, Seller shall be obligated to counter this offer by disclosure of the existence of the 426 above including any tests and reports unless disclosure has already been received and acknowledged in writing by Buyer. 427 Seller shall also disclose in the same manner whether any single family residence located on the Property has been 428 moved from an existing foundation to another foundation where such information is known to the Seller. Seller shall 429 also be obligated to counter this offer to disclose if the Property is located in a Planned Unit Development (PUD) as 430 defined pursuant to Tenn. Code Ann. § 66-5-213 unless said disclosure has already been received in writing and 431 acknowledged by Buyer. If the Property is in a PUD, Seller agrees to make available copies of the development’s 432 restrictive covenants, homeowner bylaws, and master deed to Buyer upon request. 433

17. Method of Execution. The parties agree that signatures and initials transmitted by facsimile, other photocopy 434 transmittal, or by transmittal of digital signature as defined by the applicable State or Federal law will be acceptable and 435 may be treated as originals and that the final Purchase and Sale Agreement containing all signatures and initials may be 436 executed partially by original signature and partially on facsimile, other photocopy documents, or by digital signature as 437 defined by the applicable State or Federal law. 438

18. Exhibits and Addenda. All exhibits and/or addenda attached hereto, listed below, or referenced herein are made a part 439 of this Agreement: 440 _________________________________________________________________________________________________ 441 _________________________________________________________________________________________________ 442 _________________________________________________________________________________________________ 443

DRAFT representative with copies of any supporting documentation which supports Buyer’s right

DRAFT representative with copies of any supporting documentation which supports Buyer’s right to exercise said contingency, the sufficiency and adequacy of said additional consideration being acknowledged.

DRAFT to exercise said contingency, the sufficiency and adequacy of said additional consideration being acknowledged. Any such supporting documents shall be provided for Se

DRAFT Any such supporting documents shall be provided for Seto third parties. However, Buyer shall not be required to provide any documents to Seller in violation of any

DRAFT to third parties. However, Buyer shall not be required to provide any documents to Seller in violation of any confidentiality agreement or copyright protection laws, if applicable.

DRAFT confidentiality agreement or copyright protection laws, if applicable.

Additional Obligations.

DRAFT Additional Obligations.

DRAFT If Seller has any knowledge of an exterior injection well and/or a percolation test or

DRAFT If Seller has any knowledge of an exterior injection well and/or a percolation test or

soil absorption rate on the Property, Seller shall be obligated to counter this offer by disclosure of the existence of the

DRAFT soil absorption rate on the Property, Seller shall be obligated to counter this offer by disclosure of the existence of the above including any

DRAFT above including any tests and reports unless disclosure has already been received and acknowledged in writing by Buyer.

DRAFT tests and reports unless disclosure has already been received and acknowledged in writing by Buyer.

Seller shall also disclose in the same manner whether any single family residence located on the Property has been

DRAFT Seller shall also disclose in the same manner whether any single family residence located on the Property has been moved from an existing foundation to an

DRAFT moved from an existing foundation to analso be obligated to counter this offer to disclose if the Property is located in a Planned Unit Development (PUD) as

DRAFT also be obligated to counter this offer to disclose if the Property is located in a Planned Unit Development (PUD) as defined pursuant to Tenn. Code Ann. § 66

DRAFT defined pursuant to Tenn. Code Ann. § 66acknowledged by Buyer. If the Property is in a PUD, Seller agrees to make available copies of the development’s

DRAFT acknowledged by Buyer. If the Property is in a PUD, Seller agrees to make available copies of the development’s restrictive covenants, homeowner bylaws, and master deed to Buyer upon request.

DRAFT restrictive covenants, homeowner bylaws, and master deed to Buyer upon request.

17.

DRAFT 17. Method o

DRAFT Method of Execution.

DRAFT f Execution.

transmittal, or by transmittal of digital signature as defined by the applicable State or Federal law will be acceptable and DRAFT

transmittal, or by transmittal of digital signature as defined by the applicable State or Federal law will be acceptable and may be treated as originals DRAFT

may be treated as originals executed partially by original signature and partially on facsimile, other photocopy documents, or by digital signature as DRAFT

executed partially by original signature and partially on facsimile, other photocopy documents, or by digital signature as defined by the applicable State or FederDRAFT

defined by the applicable State or FederExhibits and Addenda.DRAFT

Exhibits and Addenda.

SPECIMEN

his Agreement, the commencement shall be the day following the initial

SPECIMEN

his Agreement, the commencement shall be the day following the initial

Buyer and Seller agree to timely take such actions and produce, execute, and/or

SPECIMENBuyer and Seller agree to timely take such actions and produce, execute, and/or

tation as is reasonably necessary to carry out the responsibilities and

SPECIMENtation as is reasonably necessary to carry out the responsibilities and

obligations of this Agreement. Except as to matters which are occasioned by clerical errors or omissions or

SPECIMENobligations of this Agreement. Except as to matters which are occasioned by clerical errors or omissions or

shall constitute their approval of any

SPECIMENshall constitute their approval of any

differences between this Agreement and the Closing. Buyer and Seller agree that if requested after Closing, they

SPECIMENdifferences between this Agreement and the Closing. Buyer and Seller agree that if requested after Closing, they

will correct any documents and pay any amounts due where such corrections or payments are appropriate

SPECIMEN

will correct any documents and pay any amounts due where such corrections or payments are appropriate by reason

SPECIMEN

by reason

Except as otherwise provided herein, all notices and demands required or permitted hereunder shall be in

SPECIMEN

Except as otherwise provided herein, all notices and demands required or permitted hereunder shall be in 2) by a prepaid overnight delivery service; (3) by facsimile transmission

SPECIMEN

2) by a prepaid overnight delivery service; (3) by facsimile transmission (FAX); (4) by the United States Postal Service, postage prepaid, registered or certified, return receipt requested; or

SPECIMEN

(FAX); (4) by the United States Postal Service, postage prepaid, registered or certified, return receipt requested; or date and time it is actually received. Receipt of

SPECIMEN

date and time it is actually received. Receipt of notice by the real estate licensee or their Broker assisting a party as a client or customer shall be deemed to be notice

SPECIMEN

notice by the real estate licensee or their Broker assisting a party as a client or customer shall be deemed to be notice to that party for all purposes under this Agreement as may be amended, unless othe

SPECIMEN

to that party for all purposes under this Agreement as may be amended, unless otherwise provided in writing.

SPECIMEN

rwise provided in writing. The risk of hazard or casualty loss or damage to Property shall be borne by the Seller until transfer of

SPECIMEN

The risk of hazard or casualty loss or damage to Property shall be borne by the Seller until transfer of title. If casualty loss prior to Closing exceeds 10% of the Purchase Price, Seller or Buyer may elect to

SPECIMEN

title. If casualty loss prior to Closing exceeds 10% of the Purchase Price, Seller or Buyer may elect to

This Property is being sold without regard to race, color, sex, religion, handicap, familial status, or

SPECIMEN

This Property is being sold without regard to race, color, sex, religion, handicap, familial status, or

this Agreement is held or adjudicated to be invalid or unenforceable for

SPECIMEN

this Agreement is held or adjudicated to be invalid or unenforceable for any reason, each such portion or provision shall be severed from the remaining portions or provisions of this

SPECIMEN

any reason, each such portion or provision shall be severed from the remaining portions or provisions of this Agreement, and the remaining portions or provisions shall be unaffected a

SPECIMEN

Agreement, and the remaining portions or provisions shall be unaffected aThis Agreement or any uncertainty or ambiguity herein shall not be construed against any

SPECIMEN

This Agreement or any uncertainty or ambiguity herein shall not be construed against any party but shall be construed as if all parties to this Agreement jointly prepared this Agreement.SPECIM

EN

party but shall be construed as if all parties to this Agreement jointly prepared this Agreement.In further consideration of Buyer’s right to legally, properly and in good faith invoke a right to terminate SPECIM

EN

In further consideration of Buyer’s right to legally, properly and in good faith invoke a right to terminate this Agreement pursuant to any specific Buyer contingency as stated herein, Buyer agrees, upon Seller’s request, to SPECIM

EN

this Agreement pursuant to any specific Buyer contingency as stated herein, Buyer agrees, upon Seller’s request, to representative with copies of any supporting documentation which supports Buyer’s right SPECIM

EN

representative with copies of any supporting documentation which supports Buyer’s right to exercise said contingency, the sufficiency and adequacy of said additional consideration being acknowledged. SPECIM

EN

to exercise said contingency, the sufficiency and adequacy of said additional consideration being acknowledged.





19. Special Stipulations. The following Special Stipulations, if conflicting with any preceding paragraph, shall control: 444 _________________________________________________________________________________________________ 445 _________________________________________________________________________________________________ 446 _________________________________________________________________________________________________ 447 _________________________________________________________________________________________________ 448 _________________________________________________________________________________________________ 449 _________________________________________________________________________________________________ 450 _________________________________________________________________________________________________ 451 _________________________________________________________________________________________________ 452 _________________________________________________________________________________________________ 453 _________________________________________________________________________________________________ 454 _________________________________________________________________________________________________455 _________________________________________________________________________________________________ 456 _________________________________________________________________________________________________ 457 _________________________________________________________________________________________________ 458 _________________________________________________________________________________________________ 459

460 20. Time Limit of Offer. This Offer may be withdrawn at any time before acceptance with Notice. Offer terminates if not 461

countered or accepted by __________ o’clock □ a.m./ □ p.m.; on the ______ day of ____________________, ________. 462 LEGAL DOCUMENTS: This is an important legal document creating valuable rights and obligations. If you have 463 any questions about it, you should review it with your attorney. Neither the Broker nor any Agent or Facilitator is 464 authorized or qualified to give you any advice about the advisability or legal effect of its provisions. 465 NOTE: Any provisions of this Agreement which are preceded by a box “□” must be marked to be a part of this 466 Agreement. By affixing your signature below, you also acknowledge that you have reviewed each page and have 467 received a copy of this Agreement. 468

Buyer hereby makes this offer. 469

_____________________________________________ _____________________________________________ 470 BUYER BUYER471_______________ at __________ o’clock □ am/ □ pm _______________ at __________ o’clock □ am/ □ pm 472 Offer Date Offer Date 473

Seller hereby: 474 □ ACCEPTS – accepts this offer. 475 □ COUNTERS – accepts this offer subject to the attached Counter Offer(s). 476 □ REJECTS this offer and makes no counter offer. 477

_____________________________________________ _____________________________________________ 478 SELLER SELLER 479 _______________ at __________ o’clock □ am/ □ pm _______________ at __________ o’clock □ am/ □ pm 480 Date Date 481

Binding Agreement Date. This instrument shall become a “Binding Agreement” on the date (“Binding Agreement Date”) 482 the last offeror, or licensee of the offeror, receives notice of offeree’s acceptance. 483 Notice of acceptance of the final offer was received on the ______ day of _________, _____ at _____ □ am/ □ pm 484 by ____________________________________________________ (Name). 485

____________________________________________________________________________________________________ For Information Purposes Only: Listing Company: _______________________________ Selling Company: _________________________________ Listing Licensee: _______________________________ Selling Licensee: __________________________________Licensee Email: _________________________________ Licensee Email: ____________________________________


DRAFT accepts this offer.

DRAFT accepts this offer.accepts this offer subject to the attached Counter Offer(s).

DRAFT accepts this offer subject to the attached Counter Offer(s).this offer and makes no counter offer.

DRAFT this offer and makes no counter offer.

_____________________________________________

DRAFT _____________________________________________

_______________ at __________ o’clock

DRAFT _______________ at __________ o’clock

DRAFT Binding Agreement Date.

DRAFT Binding Agreement Date.

DRAFT This instrument shall become a “Binding Agreement” on the date (“Binding Agreement Date”)

DRAFT This instrument shall become a “Binding Agreement” on the date (“Binding Agreement Date”)

the last offeror, or licensee of the offeror, receives notice of offeree’s acceptance.

DRAFT the last offeror, or licensee of the offeror, receives notice of offeree’s acceptance. Notice of acceptance of the final offer was

DRAFT Notice of acceptance of the final offer was by ____________________________________________________ (Name).

DRAFT by ____________________________________________________ (Name).

____________________________________________________________________________________________________

DRAFT ____________________________________________________________________________________________________

DRAFT

For Information Purposes Only:DRAFT

For Information Purposes Only:Listing Company: DRAFT

Listing Company: Listing Licensee:DRAFT

Listing Licensee:Licensee Email: DRAFT

Licensee Email:

SPECIMEN

_________________________________________________________________________________________________

SPECIMEN

__________________________________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

_______________________________________________________________________________________________________________________________________________________________________________

SPECIMEN______________________________________________________________________________

_________________________________________________________________________________________________

SPECIMEN_________________________________________________________________________________________________

____________________

SPECIMEN____________________

_________________________________________________________________________________________________

SPECIMEN_________________________________________________________________________________________________

_________________________________________________________________________________________________

SPECIMEN_________________________________________________________________________________________________

___________________________________________________________

SPECIMEN

____________________________________________________________________________________________________________________________________________________________

SPECIMEN

__________________________________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

_________________________________________________________________________________________________

This Offer may be withdrawn at any time before acceptance with Notice. Offer terminates if not

SPECIMEN

This Offer may be withdrawn at any time before acceptance with Notice. Offer terminates if not p.m.; on the ______ day of ____________________, ________.

SPECIMEN

p.m.; on the ______ day of ____________________, ________.ocument creating valuable rights and obligations. If you have

SPECIMEN

ocument creating valuable rights and obligations. If you have any questions about it, you should review it with your attorney. Neither the Broker nor any Agent or Facilitator is

SPECIMEN

any questions about it, you should review it with your attorney. Neither the Broker nor any Agent or Facilitator is authorized or qualified to give you any advice about the advisability or leg

SPECIMEN

authorized or qualified to give you any advice about the advisability or legal effect of its provisions.

SPECIMEN

al effect of its provisions.NOTE: Any provisions of this Agreement which are preceded by a box “

SPECIMEN

NOTE: Any provisions of this Agreement which are preceded by a box “□

SPECIMEN

□” must be marked to be a part of this

SPECIMEN

” must be marked to be a part of this Agreement. By affixing your signature below, you also acknowledge that you have reviewed each page and have

SPECIMEN

Agreement. By affixing your signature below, you also acknowledge that you have reviewed each page and have

SPECIMEN

_____________________________________________

SPECIMEN

_____________________________________________ _____________________________________________

SPECIMEN

_____________________________________________BUYER

SPECIMEN

BUYER am/

SPECIMEN

am/ □

SPECIMEN

□ pm

SPECIMEN

pm _______________ at __________ o’clock

SPECIMEN

_______________ at __________ o’clockOffer DateSPECIM

EN

Offer DateSPECIMEN

SPECIMEN

accepts this offer subject to the attached Counter Offer(s).SPECIMEN

accepts this offer subject to the attached Counter Offer(s).


RF 651 – Counter Offer, Page 1 of 1 TENNESSEEASSOCIATIONOF REALTORS®



COUNTER OFFER #__________ This is a Counter Offer from □ Seller to Buyer OR □ Buyer to Seller1 The undersigned agree to and accept the Purchase and Sale Agreement with an offer date of _______________ for the 2 purchase of real property commonly known as: 3 ____________________________________________________________________________________________________ 4

Address, City, State, Zip 5 With the following exceptions: 6 ____________________________________________________________________________________________________ 7 ____________________________________________________________________________________________________8 ____________________________________________________________________________________________________9 ____________________________________________________________________________________________________10 ____________________________________________________________________________________________________11 ____________________________________________________________________________________________________12 ____________________________________________________________________________________________________13 ____________________________________________________________________________________________________14 ____________________________________________________________________________________________________15 ____________________________________________________________________________________________________16 ____________________________________________________________________________________________________17 ____________________________________________________________________________________________________18 ____________________________________________________________________________________________________19 ____________________________________________________________________________________________________20 ____________________________________________________________________________________________________ 21 ALL OTHER TERMS AND CONDITIONS OF THE ORIGINAL ATTACHED PURCHASE AND SALE 22 AGREEMENT ARE ACCEPTABLE TO THE UNDERSIGNED. ALL TERMS AND CONDITIONS PROPOSED 23 IN PREVIOUS COUNTER OFFERS, IF ANY, ARE NOT INCLUDED IN THIS COUNTER OFFER UNLESS 24RESTATED HEREIN. 25 This Counter Offer form will not be a part of the Purchase and Sale Agreement and be binding until accepted and 26 signed by all parties. 27 Until notice of acceptance is delivered the subject Property is still on the market for sale, and this offer may be revoked at 28 any time with notice, and the Property may be sold to any other party. 29 Time Limit of Offer: This Offer may be withdrawn at any time before acceptance with notice. Offer terminates if not 30 accepted by __________ o’clock □ am/ □ pm, local time, on the _________ day of ______________________, __________. 31

_____________________________________________ _____________________________________________32 Seller/Buyer (Party making counter offer) DATE Seller/Buyer (Party making counter offer) DATE 33

The undersigned has received and 34 □ ACCEPTED this offer35 □ REJECTED this offer36 □ COUNTERED this offer with Counter Offer #_________37

At __________ o’clock □ am/ □ pm; this _______ day of ____________________, ____________. 38

_____________________________________________ _____________________________________________ 39 Seller/Buyer (Responding Party) Seller/Buyer (Responding Party) 40

Binding Agreement Date. This instrument shall become a “Binding Agreement” on the date (“Binding Agreement Date”) 41 the last offeror, or licensee of offeror, receives notice of offeree’s acceptance. Notice of acceptance of the final offer was 42 received on the _______ day of __________________, ______, at ___________ by ________________________________. 43

time name44 NOTE: This form is provided by TAR to its members for their use in real estate transactions and is to be used as is. By downloading and/or using this form, you agree and covenant not to alter, amend, or edit said form or its contents except as where provided in the blank fields, and agree and acknowledge that any such alteration, amendment or edit of said form is done at your own risk. Use of the TAR logo in conjunction with any form other than standardized forms created by TAR is strictly prohibited. This form is subject to periodic revision and it is the responsibility of the member to use the most recent available form.

DRAFT til notice of acceptance is delivered

DRAFT til notice of acceptance is delivered the subject

DRAFT the subject

DRAFT Property

DRAFT Property may be sold to any other party.

DRAFT may be sold to any other party.This Offer may be withdrawn at any tim

DRAFT This Offer may be withdrawn at any timo’clock

DRAFT o’clock □

DRAFT □ am/

DRAFT am/ □

DRAFT □ pm

DRAFT pm, local time,

DRAFT , local time,

_____________________________________________

DRAFT _____________________________________________

DRAFT (Party making counter offer)

DRAFT (Party making counter offer)

DRAFT The undersigned has received and

DRAFT The undersigned has received and

DRAFT ACCEPTED

DRAFT ACCEPTED this offer

DRAFT this offer

□

DRAFT □ REJECTED

DRAFT REJECTED this offer

DRAFT this offer

□

DRAFT □ COUNTERED

DRAFT COUNTERED

At

DRAFT At __

DRAFT ________

DRAFT ________________

DRAFT __________ __

DRAFT __ ________ ______

DRAFT ________ ______ o’clock

DRAFT o’clock

_____________________________________________DRAFT

_____________________________________________DRAFT

Seller/Buyer DRAFT

Seller/Buyer DRAFT

DRAFT

DRAFT

Binding Agreement Date. DRAFT

Binding Agreement Date. the last offeror, or licensee of offeror, receives notice of offeree’s acceptance. Notice of acceptance of the finalDRAFT

the last offeror, or licensee of offeror, receives notice of offeree’s acceptance. Notice of acceptance of the finalreceived DRAFT

received

SPECIMEN

_______________

SPECIMEN

_______________ for the

SPECIMEN

for the

________________________________________________________________________________________________

SPECIMEN________________________________________________________________________________________________

_________

SPECIMEN_________________________

SPECIMEN__________________________________________________

SPECIMEN__________________________________

___________________________________________________________________________________________________

SPECIMEN

_______________________________________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

_______________________________________________________________________________________________________________________________________________

SPECIMEN

_______________________________________________________________________________________________________________________________________________

SPECIMEN

________________________________________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

___________________________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

___________________________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

_________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

____________________________________________________________________________________________________

SPECIMEN

________________________________________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

________________________________________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

_______________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

_______________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

_____________________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

_____________________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

____________________________________________________________________________________________________ALL OTHER TERMS AND CONDITIONS OF THE ORIGINAL ATTACHED PURCHASE AND SALE

SPECIMEN

ALL OTHER TERMS AND CONDITIONS OF THE ORIGINAL ATTACHED PURCHASE AND SALE AGREEMENT ARE ACCEPTABLE TO THE UNDERSIGNED. ALL TERMS AND

SPECIMEN

AGREEMENT ARE ACCEPTABLE TO THE UNDERSIGNED. ALL TERMS AND IN PREVIOUS COUNTER OFFERS, IF ANY, ARE NOT INCLUDED IN THIS COUNTER OFFER UNLESS

SPECIMEN

IN PREVIOUS COUNTER OFFERS, IF ANY, ARE NOT INCLUDED IN THIS COUNTER OFFER UNLESS

This Counter Offer form will not be a part of the Purchase and Sale Agreement and be binding until accepted and SPECIMEN

This Counter Offer form will not be a part of the Purchase and Sale Agreement and be binding until accepted and

PropertySPECIMEN

Property is still on the market for sale, and this offer may be revoked at SPECIMEN

is still on the market for sale, and this offer may be revoked at may be sold to any other party.SPECIM

EN

may be sold to any other party.


RF 654 – Repair / Replacement Proposal, Page 1 of 1



This form is copyrighted and may only be used in real estate transactions in which ___________________ ________________________ is involved as a TAR authorized user. Unauthorized use of the form may result in legal sa nctions being brought against the user and should be reported to the Tennessee Association of Realtors ® at (615) 321-1477.

REPAIR / REPLACEMENT PROPOSAL #_____

NOTE: This form is for information and/or negotiation purposes only and IS NOT TO BE INCLUDED as part of the Purchase and Sale Agreement. Neither party shall be bound until there is a separate mutual written agreement executed by all parties. The Repair/Replacement Amendment may be used for purposes of the mutual written agreement on repairs/replacements. Buyer has made any and all inspections available under the Inspection section of the Purchase and Sale Agreement with a 1

Binding Agreement Date of ________________ (“Agreement”) for the purchase of the real property commonly known as: 2

____________________________________________________________________________________________________. 3

The parties hereby understand that they are required to negotiate repairs in good faith during the Resolution Period as set 4 forth in the Agreement. Good faith negotiation includes but is not limited to timely communicating one’s position during the 5 Resolution Period regarding any proposed repairs and/or replacements. The undersigned hereby proposes that the following 6 written list of items be repaired and/or replaced with like quality or value in a professional and workmanlike manner. Upon 7 request, either party shall submit a copy of any supporting documentation or any portion thereof substantiating any item 8 listed. 9

LIST OF ITEMS TO BE REPAIRED AND/OR REPLACED (Please be specific about whether the items are to be 10 repaired or replaced): 11

____________________________________________________________________________________________________12 ____________________________________________________________________________________________________13____________________________________________________________________________________________________14 ____________________________________________________________________________________________________15 ____________________________________________________________________________________________________16 ____________________________________________________________________________________________________17 ____________________________________________________________________________________________________18 ____________________________________________________________________________________________________19 ____________________________________________________________________________________________________20 ____________________________________________________________________________________________________21 ____________________________________________________________________________________________________22 ____________________________________________________________________________________________________23 ____________________________________________________________________________________________________24 ____________________________________________________________________________________________________25____________________________________________________________________________________________________26 ____________________________________________________________________________________________________27 ____________________________________________________________________________________________________ 28

The above matters will be completed by Seller _____ days prior to Closing, as defined in the Agreement (the “Completion of 29 Repairs Deadline”). Buyer and/or buyer’s inspectors or representatives shall have the right to re-inspect at that time to 30 confirm that such matters have been repaired and/or replaced in a professional and workmanlike manner. Such inspection 31 shall not limit Buyer’s right to conduct a Final Inspection as provided for in paragraph 9 of the Agreement. 32

________________________________________ _____________________________________________ 33 Party Proposing Repairs Party Proposing Repairs 34

_______________ at __________ o’clock □ am/ □ pm _______________ at __________ o’clock □ am/ □ pm 35 Date Date 36


DRAFT _____________________________________________________________________________________________

DRAFT _________________________________________________________________________________________________________________________________________________________________________________________________

DRAFT ________________________________________________________________________________________________________________________________________________________________________________________________________

DRAFT _____________________________________________________________________________________________________________________________________________________

DRAFT _____________________________________________________________________________________________________________________________________________________

DRAFT ________________________________________________________________________________________________________________________________________________________________________________________________________

DRAFT ____________________________________________________________________________________________________

_______________________________________________________________________________________________

DRAFT _______________________________________________________________________________________________

____________________________________________________________________________________________________

DRAFT _________________________________________________________________________________________________________________________________________________________________

DRAFT ________________________________________________________________________________________________________________________________________

DRAFT ___________________________________________________________________________

The above matters will be completed by Seller _____ days prior to Closin

DRAFT The above matters will be completed by Seller _____ days prior to ClosinRepairs Deadline”)

DRAFT Repairs Deadline”). Buyer

DRAFT . Buyer and/or

DRAFT and/or

confirm that such matters have been

DRAFT confirm that such matters have been shall not limit Buyer’s right to conduct a Final Inspection as provided for in paragraph

DRAFT shall not limit Buyer’s right to conduct a Final Inspection as provided for in paragraph

DRAFT

DRAFT

________________________________________DRAFT

________________________________________DRAFT

Party Proposing RepairsDRAFT

Party Proposing RepairsDRAFT

_______________ at __________ o’clock DRAFT

_______________ at __________ o’clock DateDRAFT

Date

SPECIMEN

IS NOT

SPECIMEN

IS NOT TO BE

SPECIMEN

TO BE

SPECIMENparty shall be bound until there is

SPECIMENparty shall be bound until there is

a separate mutual written agreement executed by all parties. The Repair/Replacement Amendment

SPECIMENa separate mutual written agreement executed by all parties. The Repair/Replacement Amendment

may be used for purposes of the mutual written agreement on repairs/replacements.

SPECIMENmay be used for purposes of the mutual written agreement on repairs/replacements.

Buyer has made any and all inspections available under the Inspection section of the Purchase and Sale Agreement

SPECIMENBuyer has made any and all inspections available under the Inspection section of the Purchase and Sale Agreement with

SPECIMENwith

) for the purchase of the real property commonly known as:

SPECIMEN

) for the purchase of the real property commonly known as:

_______________________________________________________________________________________________

SPECIMEN

_______________________________________________________________________________________________

at they are required to negotiate repairs in good faith during the Resolution Period as set

SPECIMEN

at they are required to negotiate repairs in good faith during the Resolution Period as set timely

SPECIMEN

timely communicat

SPECIMEN

communicating

SPECIMEN

ing one’

SPECIMEN

one’The undersigned hereby proposes that the

SPECIMEN

The undersigned hereby proposes that the with like quality or value in a prof

SPECIMEN

with like quality or value in a professional and workmanlike manner

SPECIMEN

essional and workmanlike mannerwith like quality or value in a professional and workmanlike mannerwith like quality or value in a prof

SPECIMEN

with like quality or value in a professional and workmanlike mannerwith like quality or value in a profshall submit a copy of any supporting documentation or any portion thereof substantiating any item

SPECIMEN

shall submit a copy of any supporting documentation or any portion thereof substantiating any item

(Please be specific about whether the items are to be

SPECIMEN

(Please be specific about whether the items are to be

___________________________________________________________________________

SPECIMEN

_____________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

___________________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

_____________________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

________________________________________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

___________________________________________________________________________________________________________________________________________________________________SPECIM

EN

___________________________________________________________________________________________________________________________________________________________________SPECIM

EN

_________________________________________________________________________________________________________________________________________________________________________________________________SPECIM

EN

_________________________________________________________________________________________________________________________________________________________________________________________________SPECIM

EN

____________________________________________________________________________________________________


RF 655 – Repair / Replacement Amendment, Page 1 of 1




REPAIR / REPLACEMENT AMENDMENT

In consideration of the mutual covenants herein and other good and valuable consideration, the receipt and sufficiency of 1 which is hereby acknowledged, the parties enter into this Repair / Replacement Amendment for purposes of amending the 2 Purchase and Sale Agreement with a Binding Agreement Date of ___________________ (“Agreement”) for the purchase 3 and sale of the real property commonly known as:4____________________________________________________________________________________________________ 5

The Seller shall cause the following items to be replaced or repaired with like quality or value in a professional and 6 workmanlike manner as the parties hereinafter agree. (Please be specific as to whether the items are to be repaired or 7 replaced): 8

____________________________________________________________________________________________________9 ____________________________________________________________________________________________________10 ____________________________________________________________________________________________________11 ____________________________________________________________________________________________________12 ____________________________________________________________________________________________________13 ____________________________________________________________________________________________________14 ____________________________________________________________________________________________________15 ____________________________________________________________________________________________________16 ____________________________________________________________________________________________________17 ____________________________________________________________________________________________________18 ____________________________________________________________________________________________________19 ____________________________________________________________________________________________________20 ____________________________________________________________________________________________________21 ____________________________________________________________________________________________________22 ____________________________________________________________________________________________________23 ____________________________________________________________________________________________________24 Seller agrees to complete the above matters _____ days prior to Closing as provided in the Agreement (“Completion of 25 Repairs Deadline”) at which time Buyer and/or Buyer’s inspectors or representatives shall have the right to re-inspect to 26 confirm that such matters have been completed. Such inspection shall not limit Buyer’s right to conduct a Final Inspection as 27 provided for in paragraph 9 of the Agreement. 28

It is agreed by the parties hereto that all of the other terms and conditions of the aforementioned Agreement shall remain in 29 full force and effect other than as specifically modified herein. 30

The party(ies) below have signed and acknowledge receipt of a copy. 31

_____________________________________________ _____________________________________________ 32 BUYER BUYER 33

_______________ at __________ o’clock □ am/ □ pm _______________ at __________ o’clock □ am/ □ pm 34 Date Date 35


_____________________________________________ _____________________________________________ 37 SELLER SELLER 38

_______________ at __________ o’clock □ am/ □ pm _______________ at __________ o’clock □ am/ □ pm 39 Date Date40


DRAFT at which time Buyer

DRAFT at which time Buyer and/or

DRAFT and/orconfirm that such matters have been completed.

DRAFT confirm that such matters have been completed. provided for in paragraph 9 of the Agreement.

DRAFT provided for in paragraph 9 of the Agreement.

DRAFT It is agreed by the parties here

DRAFT It is agreed by the parties hereto that all of the other terms and conditions of the aforementioned Agreement shall remain in

DRAFT to that all of the other terms and conditions of the aforementioned Agreement shall remain in

full force and effect other than as specifically modified herein.

DRAFT full force and effect other than as specifically modified herein.

The party(ies) below have signed and acknowledge receipt of a copy.

DRAFT The party(ies) below have signed and acknowledge receipt of a copy.

DRAFT __________________________

DRAFT __________________________BUYER

DRAFT BUYER

_______________ at __________ o’clock

DRAFT _______________ at __________ o’clock Date

DRAFT Date

DRAFT The par

DRAFT The party(ies) below have signed and acknowledge receipt of

DRAFT ty(ies) below have signed and acknowledge receipt of

DRAFT

_____________________________________________DRAFT

_____________________________________________DRAFT

SELLERDRAFT

SELLERDRAFT

_______________ at __________ o’clock DRAFT

_______________ at __________ o’clock

SPECIMENIn consideration of the mutual covenants herein and other good and valuable consideration, the receipt and sufficien

SPECIMENIn consideration of the mutual covenants herein and other good and valuable consideration, the receipt and sufficienc

SPECIMENcy of

SPECIMENy of

for purposes of amending the

SPECIMENfor purposes of amending the

with a Binding Agreement Date of ___________________ (“Agreement”) for the purchase

SPECIMENwith a Binding Agreement Date of ___________________ (“Agreement”) for the purchase

___________________________________________________________________________

SPECIMEN_____________________________________________________________________________________________

SPECIMEN__________________________________________________________________________________________________________________________________________________________________________________________

SPECIMEN________________________________________________________________________________________________________________________________________________________________________

be replaced or repaired with like quality or value in a professional and

SPECIMEN

be replaced or repaired with like quality or value in a professional and (Please be specific as to whether the items are to be repaired or

SPECIMEN

(Please be specific as to whether the items are to be repaired or

____________________________________________________________________________________________________

SPECIMEN

________________________________________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

________________________________________________________________________________________________________________________________________________

SPECIMEN

________________________________________________________________________________________________________________________________________________

SPECIMEN

________________________________________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

____________________________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

____________________________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

____________________________________________________________________________________________________

SPECIMEN

________________________________________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

________________________________________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

________________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

________________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

____________________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

____________________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

________________________________________________________________________________________________________________________________________________________________________________________________________SPECIM

EN

____________________________________________________________________________________________________________________________________________________________________SPECIM

EN

_____________________________________________________________________ daysSPECIM

EN

_____ days prior to ClosingSPECIMEN

prior to ClosingBuyer’sSPECIM

EN

Buyer’s inspectors or represeSPECIMEN

inspectors or represeSuch inspection shall not limit Buyer’s right to conduct a Final Inspection as SPECIM

EN

Such inspection shall not limit Buyer’s right to conduct a Final Inspection as


RF656 – Notification, Page 1 of 2 TENNESSEEASSOCIATIONOF REALTORS®



NOTIFICATION This is NOTIFICATION from the □ Seller (Notifying Party) to Buyer OR □ Buyer (Notifying Party) to Seller.1

This NOTICE is hereby tendered in accordance with the provisions of that certain Purchase and Sale Agreement made 2 between the parties below with a Binding Agreement Date of _________________________, for the purchase and sale of 3 real property located at: ________________________________________________________________________________. 4

CHECK THE BOX(ES) THAT APPLY: 5

□ 1. Appraised value did not equal or exceed the Purchase Price. Buyer is exercising the right to terminate 6 and hereby requests refund of Earnest Money. See a copy of proof that appraised value did not equal or 7 exceed Purchase Price (for example, this written proof could include, but is not limited to, a copy of 8 appraisal or a signed letter from Lender). 9

□ 2. Having acted in good faith, Buyer is unable to obtain financing and is exercising the right to terminate 10 and hereby requests refund of Earnest Money. See attached Lender’s loan denial letter. 11

□ 3. Buyer has made application for loan and is notifying Seller and/or Seller’s Representative of the name 12 and contact information of the Lender. Buyer has also instructed Lender to order appraisal and credit 13 report. Lender’s name and contact information is: 14 ____________________________________________________________________________________ 15 ____________________________________________________________________________________ 16

□ 4. Buyer has changed lenders and is notifying Seller that the new Lender’s name and contact information is: 17 _____________________________________________________________________________________18 __________________________________________________________________________________19

□ 5. This is Seller’s written demand for Buyer to provide the name and contact information of the Lender and 20 that Buyer has instructed Lender to order appraisal and credit report. 21

□ 6. Buyer warrants and represents the following: 22

□ all required Lender deposits, including appraisal cost and credit report, have been paid and Buyer has23 provided the attached supporting documentation (e.g. cancelled check, receipt from Lender, letter 24 from loan originator, etc.); and/or 25

□ Buyer has available funds to close per Lender and/or loan originator estimates (e.g. the Good Faith26 Estimate).27

□ 7. This is Seller’s written demand for Buyer to provide the following warranties and representations: 28

□ all required Lender deposits, including appraisal cost and credit report, have been paid and Buyer to29 provide the attached supporting documentation (e.g. cancelled check, receipt from Lender, letter from30loan originator, etc.);31

□ Buyer has available funds to close per Lender and/or loan originator estimates (e.g. the Good Faith32 Estimate).33

□ 8. Buyer has waived his financial contingency and is furnishing proof of available funds in the following 34 manner: ________________________________________________________. Documentation attached. 35

□ 9. This is Seller’s written demand for Buyer to provide proof of available funds as required in transactions 36 wherein Buyer has waived his financial contingency. 37

□ 10. Buyer has waived his financial contingency and is providing Seller with the name and telephone number 38 of the appraiser who will conduct the appraisal on the property: 39 ___________________________________________________________________________________. 40

□ 11. This is Seller’s written demand for the name and telephone number of the appraiser and proof that 41

DRAFT Buyer warrants and represents the following:

DRAFT Buyer warrants and represents the following: all required Lender deposits, including appraisal cost and credit report, have been paid and Buyer has

DRAFT all required Lender deposits, including appraisal cost and credit report, have been paid and Buyer has d the attached supporting documentation (e.g. cancelled check, receipt from Lender, letter

DRAFT d the attached supporting documentation (e.g. cancelled check, receipt from Lender, letter from loan originator, etc.);

DRAFT from loan originator, etc.); and

DRAFT and/or

DRAFT /or

DRAFT Buyer has available funds to close per Lender and/or loan originator estimates (e.g. the Good Faith

DRAFT Buyer has available funds to close per Lender and/or loan originator estimates (e.g. the Good Faith Estimate).

DRAFT Estimate).

ller’s written demand for Buyer to provide the following warranties and representations:

DRAFT ller’s written demand for Buyer to provide the following warranties and representations:

all required Lender deposits, including appraisal cost and credit report, have been paid and

DRAFT all required Lender deposits, including appraisal cost and credit report, have been paid and provide the attached supporting documentation (e.g. cancelled check,

DRAFT provide the attached supporting documentation (e.g. cancelled check, loan originator, etc.);

DRAFT loan originator, etc.);

□

DRAFT □ Buyer has available funds to close per Lender and/or loan originator estimates (e.g. the Good Faith

DRAFT Buyer has available funds to close per Lender and/or loan originator estimates (e.g. the Good Faith Estimate).

DRAFT Estimate).

□

DRAFT

□ 8.

DRAFT

8. Buyer has waived his financial contingency and

DRAFT

Buyer has waived his financial contingency and manner:DRAFT

manner:□ DRAFT

□ 9.DRAFT

9. This is Seller’s written demand for Buyer to provide proof of available funds as requDRAFT

This is Seller’s written demand for Buyer to provide proof of available funds as requwherein Buyer has waived his fiDRAFT

wherein Buyer has waived his fi

SPECIMEN

Buyer (Notifying Party) to Seller.

SPECIMEN

Buyer (Notifying Party) to Seller.visions of that certain Purchase and Sale Agreement made

SPECIMENvisions of that certain Purchase and Sale Agreement made

between the parties below with a Binding Agreement Date of _________________________, for the purchase and sale of

SPECIMENbetween the parties below with a Binding Agreement Date of _________________________, for the purchase and sale of

______________________.

SPECIMEN______________________.

Appraised value did not equal or exceed the Purchase Price. Buyer is exercising the right to terminate

SPECIMEN

Appraised value did not equal or exceed the Purchase Price. Buyer is exercising the right to terminate of proof that appraise

SPECIMEN

of proof that appraised value did n

SPECIMEN

d value did not equal or

SPECIMEN

ot equal or (for example, this written proof could include, but is not limited to, a copy of

SPECIMEN

(for example, this written proof could include, but is not limited to, a copy of

Having acted in good faith, Buyer is unable to obtain financing and is exercising the right to terminate

SPECIMEN

Having acted in good faith, Buyer is unable to obtain financing and is exercising the right to terminate See attached Lender’s loan denial letter.

SPECIMEN

See attached Lender’s loan denial letter.er and/or Seller’s Representative of the name

SPECIMEN

er and/or Seller’s Representative of the name and contact information of the Lender. Buyer has also instructed Lender to order appraisal and credit

SPECIMEN

and contact information of the Lender. Buyer has also instructed Lender to order appraisal and credit

_____________________________________________________

SPECIMEN

______________________________________________________

SPECIMEN

____________________________________________________________________________________________________________

SPECIMEN

___________________________________________________________________________________________________________ ______________________________

SPECIMEN

______________________________________________________________

SPECIMEN

______________________________________________________________________________________

SPECIMEN

____________________________________________________________________________________

SPECIMEN

________________________________________________________________________________________________________________________________________________________________________

SPECIMEN

__________________________________________________________________________________________________________________________________________Buyer has changed lenders and is notifying Seller that the new Lender’s name and contact information is:

SPECIMEN

Buyer has changed lenders and is notifying Seller that the new Lender’s name and contact information is:______________________________________________________

SPECIMEN

___________________________________________________________________________________________________________________________________

SPECIMEN

_____________________________________________________________________________This is Seller’s written demand for Buyer to provide the name and contact informati

SPECIMEN

This is Seller’s written demand for Buyer to provide the name and contact informatithat Buyer has instructed Lender to order appraisal and credit report.SPECIM

EN

that Buyer has instructed Lender to order appraisal and credit report.Buyer warrants and represents the following: SPECIM

EN

Buyer warrants and represents the following: all required Lender deposits, including appraisal cost and credit report, have been paid and Buyer has SPECIM

EN

all required Lender deposits, including appraisal cost and credit report, have been paid and Buyer has d the attached supporting documentation (e.g. cancelled check, receipt from Lender, letter SPECIM

EN

d the attached supporting documentation (e.g. cancelled check, receipt from Lender, letter


RF656 – Notification, Page 2 of 2 TENNESSEEASSOCIATIONOF REALTORS®



appraisal was ordered in a transaction in which Buyer has waived his financial contingency. 42

□ 12. Holder has advised that the Earnest Money Check or other instrument has been dishonored. Buyer has43failed to timely deliver immediately available funds following notice by Holder. Seller is hereby 44exercising his right to terminate Agreement.45

□ 13. Holder has advised that the Earnest Money has not been timely received as required pursuant to the 46 Earnest Money paragraph. Buyer has failed to timely deliver immediately available funds following 47 notice by Holder. Seller is hereby exercising his right to terminate Agreement. 48

□ 14. Title examination, closing or loan survey pursuant to Tenn. Code Ann. § 62-18-126, boundary line 49 survey, or other information has disclosed the following material defects: 50 _____________________________________________________________________________________51 _____________________________________________________________________________________52 _____________________________________________________________________________________53 _____________________________________________________________________________________ 54

and Buyer is requiring Seller to remedy such defects prior to the Closing Date. Documentation 55 attached. 56

□15. Material defects disclosed from title examination, closing or loan survey pursuant to Tenn. Code Ann. § 57 62-18-126, boundary line survey, or other information have not been remedied prior to the Closing Date 58 or any extension thereof resulting in the termination of the Purchase and Sale Agreement. Buyer is hereby 59 requesting refund of Earnest Money. 60

□ 16. Buyer has made any and all inspections available under the Inspection section of the Purchase and Sale 61 Agreement and is exercising Buyer’s right to immediately TERMINATE the Purchase and Sale 62 Agreement with all Earnest Money refunded to Buyer. This Notification hereby serves as NOTICE 63 OF TERMNATION of the Purchase and Sale Agreement and WRITTEN DEMAND FOR 64 DISTRIBUTION OF EARNEST MONEY to the Buyer. Buyer is hereby providing a list of written 65 specified objections which Buyer has discovered in good faith. As additional consideration for Buyer’s 66 right to terminate, Buyer shall deliver to Seller or Seller’s representative, upon Seller’s request, a copy of 67 all inspection reports pursuant to the Agreement. 68 LIST OF SPECIFIED OBJECTIONS: 69 _____________________________________________________________________________________70 _____________________________________________________________________________________ 71

□ 17. Buyer has made any and all inspections available under the Inspection section of the Purchase and Sale 72 Agreement and ACCEPTS the Property in its present AS IS condition with any and all faults and no 73 warranties expressed or implied. Seller has no obligation to make repairs. However, Buyer has not 74 waived his rights under the Final Inspection paragraph of the Purchase and Sale Agreement; 75

□ 18. Buyer WAIVES any and all inspection contingencies available under the Inspection section of the 76 Purchase and Sale Agreement except as to the Final Inspection section of the Purchase and Sale 77 Agreement. 78

□ 19. OTHER: 79 _____________________________________________________________________________________80 _____________________________________________________________________________________81 _____________________________________________________________________________________82 _____________________________________________________________________________________83 _____________________________________________________________________________________ 84


_____________________________________________ _____________________________________________ 86 NOTIFYING PARTY (Buyer/Seller Signature) NOTIFYING PARTY (Buyer/Seller Signature) 87 _______________ at __________ o’clock □ am/ □ pm _______________ at __________ o’clock □ am/ □ pm 88 Date Date89


DRAFT ___________________________________________

DRAFT ___________________________________________Buyer has made any and all inspections available under the Inspection section of the Purchase and Sale

DRAFT Buyer has made any and all inspections available under the Inspection section of the Purchase and SaleACCEPTS the P

DRAFT ACCEPTS the Property in its prese

DRAFT roperty in its presewarranties expressed or implied. Seller has no obligation to make repairs. How

DRAFT warranties expressed or implied. Seller has no obligation to make repairs. Howrights under the Final Inspection paragraph of the Purchase and Sale Agreement;

DRAFT rights under the Final Inspection paragraph of the Purchase and Sale Agreement;VES any and all inspection

DRAFT VES any and all inspection

Purchase and

DRAFT Purchase and Sale Agreement except as to the Final Inspection section of the Purchase and Sale

DRAFT Sale Agreement except as to the Final Inspection section of the Purchase and Sale

Agreement.

DRAFT Agreement.OTHER:

DRAFT OTHER:_____________________________________________________________________________________

DRAFT __________________________________________________________________________________________________________________________________________________________________________

DRAFT __________________________________________________________________________________________________________________________________________________________________________

DRAFT ______________________________________________________________________________________

DRAFT _____________________________________________________________________________________

DRAFT __________________________________________________________________________________________________________________________________________________________________________

DRAFT ___________________________________________________________________________________________________________________________________________________________________________

DRAFT _____________________________________________________________________________________

The party(ies) below have signed and acknowledge receipt of a copy.DRAFT

The party(ies) below have signed and acknowledge receipt of a copy.DRAFT

DRAFT

_________________DRAFT

_________________DRAFT

NOTIFYING PARTY (Buyer/Seller Signature)DRAFT

NOTIFYING PARTY (Buyer/Seller Signature)_______________ at __________ o’clock DRAFT

_______________ at __________ o’clock

SPECIMEN

equired pursuant to the

SPECIMEN

equired pursuant to thefollowing

SPECIMEN

following

, boundary line

SPECIMEN, boundary line

______________________________

SPECIMEN______________________________

____________________________________________________________________________________

SPECIMEN____________________________________________________________________________________

_____________________________________________________________________________________

SPECIMEN

_________________________________________________________________________________________________________________

SPECIMEN

____________________________

and Buyer is requiring Seller to remedy such defects prior to the Closing Date.

SPECIMEN

and Buyer is requiring Seller to remedy such defects prior to the Closing Date.

SPECIMEN

Documentation

SPECIMEN

Documentation

closing or loan survey pursuant to Tenn. Code Ann. §

SPECIMEN

closing or loan survey pursuant to Tenn. Code Ann. § her information have not been remedied prior to the Closing Date

SPECIMEN

her information have not been remedied prior to the Closing Dateor any extension thereof resulting in the termination of the Purchase and Sale Agreement. Buyer is hereby

SPECIMEN

or any extension thereof resulting in the termination of the Purchase and Sale Agreement. Buyer is hereby

lable under the Inspection section of the Purchase and Sale

SPECIMEN

lable under the Inspection section of the Purchase and Saleand is exercising Buyer’s right to immediately

SPECIMEN

and is exercising Buyer’s right to immediately TERMINATE

SPECIMEN

TERMINATEAgreement with all Earnest Money refunded to Buyer.

SPECIMEN

Agreement with all Earnest Money refunded to Buyer. This Notification hereby serves as NOTICE

SPECIMEN

This Notification hereby serves as NOTICEN of the Purchase and Sale Agreement and WRITTEN DEMAND FOR

SPECIMEN

N of the Purchase and Sale Agreement and WRITTEN DEMAND FORDISTRIBUTION OF EARNEST MONEY to the Buyer.

SPECIMEN

DISTRIBUTION OF EARNEST MONEY to the Buyer.

SPECIMEN

Buyer is hereby providing a list of written

SPECIMEN

Buyer is hereby providing a list of written Buyer has discovered in good faith. As additional consideration for Buyer’s

SPECIMEN

Buyer has discovered in good faith. As additional consideration for Buyer’sright to terminate, Buyer shall deliver to Seller or Seller’s representative, upon Seller’s request, a copy of

SPECIMEN

right to terminate, Buyer shall deliver to Seller or Seller’s representative, upon Seller’s request, a copy ofall inspection reports pursuant to the Agreement.

SPECIMEN

all inspection reports pursuant to the Agreement.D OBJECTIONS: SPECIM

EN

D OBJECTIONS:_____________________________________________________________________________________SPECIM

EN

________________________________________________________________________________________________________________________________SPECIM

EN

___________________________________________Buyer has made any and all inspections available under the Inspection section of the Purchase and SaleSPECIM

EN

Buyer has made any and all inspections available under the Inspection section of the Purchase and Saleroperty in its preseSPECIM

EN

roperty in its prese