Closing Dispute
Breach Of Purchase And Sale Agreement
The median home listing price in Williamson County, Tennessee, is over one million dollars, making real estate transactions one of the most significant financial investments for buyers and sellers. With so much at stake, it’s not uncommon for issues to arise at the closing table. Homebuyers and sellers are often faced with a stack of documents to sign, and sometimes, last-minute changes or attempts to back out can leave parties in a challenging position.
At our Franklin, TN real estate law firm, we represent homebuyers and sellers in closing disputes, ensuring that their contractual and statutory rights are upheld. Whether you’re dealing with unexpected changes to the deal or disputes over home purchase agreements, we are here to help. We believe in the power of proactive legal strategy and offer negotiation and litigation services to resolve disputes in and around Williamson County, TN.
What Is A Tennessee Home Purchase Agreement?
A Tennessee Home Purchase Agreement (also referred to as a Purchase and Sale Agreement) is typically presented by a buyer or their agent to a seller as a formal offer to purchase a property. This agreement is a critical part of the real estate transaction process and outlines the terms and conditions of the sale.
Before making an offer, the buyer will usually receive a Property Disclosure form from the seller, which details any known issues with the property. The Home Purchase Agreement will incorporate many of the key terms that guide the transaction, such as whether the purchase is contingent on the buyer securing financing, the property appraising for the agreed-upon value, or the sale of another property owned by the buyer.
Inspection Period
In a Tennessee Home Purchase Agreement, the inspection period is a critical contingency that allows the buyer a specified number of days, typically around 10 days, to have the property professionally inspected. During this period, the buyer can assess the condition of the property and identify any defects or issues that may affect their decision to proceed with the purchase. The buyer usually has three options once the inspection is complete: they can either accept the property as-is, terminate the contract with certain requirements, or request repairs from the seller by submitting a list of issues, which triggers a resolution period for the parties to negotiate. If no action is taken within the allotted inspection period, the contract generally defaults to the buyer accepting the property in its current condition, with no further recourse for defects. There is often more nuance to these issues and you should consult with a lawyer to provide an evaluation of your specific contract and any special stipulations.
Resolution Period For Repairs
In a Tennessee Home Purchase Agreement, the Resolution Period follows if the buyer submits a list of requested repairs during the inspection period. This period, typically around 3 days, allows the buyer and seller to negotiate and come to an agreement on how the repairs will be handled. During the Resolution Period, it is critical for the buyer not to rely solely on the seller’s representation that repairs have been completed. The buyer should ensure they receive detailed documentation, such as receipts and proof of completion, and conduct a thorough Final Inspection of the property to verify that all repairs have been properly addressed. Failing to do so may result in accepting the property in its current condition without recourse.
Financing Contingency
The Financing Contingency in a Tennessee Home Purchase Agreement outlines the buyer’s ability to secure financing for the purchase of the property. This contingency typically provides for notice requirements and deadlines to the seller within a specified period. In addition to meeting specific requirements, the buyer is obligated to exercise good faith in their pursuit of financing and to avoid any actions that could jeopardize their ability to obtain a loan, such as materially altering their financial position. Failing to meet these obligations can lead to the buyer forfeiting the ability to enforce the financing contingency, potentially resulting in the loss of their earnest money deposit or the failure to complete the transaction.
Appraisal Contingency
An Appraisal Contingency in a Tennessee Home Purchase Agreement typically provides an option to the buyer conditioned upon the property's appraised value. If the property appraises for less than a certain value, the buyer may have an option under certain contracts to terminate. This contingency ensures that the buyer is not financially overextended by purchasing a property that is valued lower than the agreed-upon sale price. It is important for both buyers and sellers to understand the implications of the appraisal process, as failure to resolve discrepancies in the appraisal value may lead to delays or the cancellation of the transaction. As with all information provided on this site, your purchase agreement and facts are unique and you should consult with an attorney regarding any rights, obligations, or options available to you or another party.
Failure To Return Earnest Money
If there is a dispute as to whom the earnest money is to be returned to that cannot be resolved, the money will be interplead (put into) the court and the parties will dispute the matter. If you feel you are entitled to the return or retention of earnest money, please contact our office to schedule an initial consultation.
Failure to Close On Home
Has the seller refused to close on the Tennessee home you were buying? Or did a buyer back out or fail to close on the Tennessee home you were selling? The consequences of failing to close can vary depending on the circumstances and the reasons behind the failure. It is essential to review all communications between your real estate agent and the other party’s agent during the relevant period. While real estate agents typically aim to facilitate a smooth transaction, it may sometimes be necessary to enforce your legal rights if you are being taken advantage of. Whether you are a buyer or seller, Sam Cross Law can help you understand your options and pursue a resolution.
Franklin TN Home Purchase Attorney
Sam Cross Law assists clients in Franklin TN with Real Estate legal issues. Our services range from a simple consultation to complex litigation. Please feel free to schedule an initial consultation today.
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Sam Cross is a Franklin, Tennessee real estate attorney who focuses his practice on protecting the rights of homeowners in disputes involving home purchases, construction defects, property disclosures, and HOA matters. To learn more, schedule an initial consultation by clicking the button below.