How would you like to purchase what you think is your dream Tennessee property only to find out after closing that you are actually located in a flood zone? Or you can’t obtain a building permit? Or you learn that your property hasn’t had a soil test or has failed the test?
These are just a few examples of several items that should be made available to you in the Seller’s Property Disclosure Statement. Follow along in today’s Fence Post blog to learn more about what you should make sure is available to you prior to purchasing land and why.
At TNLand.com we pride ourselves on honesty, integrity, and being true to our word, but gone are the days of being able to simply give an honest handshake or a brief one page contract in order to finalize a deal. In today’s land real estate world as many as 10+ signatures may be required in order to place a property under contract. In many cases, more paperwork is required for the contract than the closing! This may seem cumbersome but most of it is in place to protect you, the consumer. If the seller has nothing to hide and has been forthcoming through the sales process then this should not be an issue which is why we are more than happy to comply at TNLand.com. So while the good ol’ days of an honest handshake being enough may be gone, the lengthy legal forms of today are an attempt to also wave goodbye to the days where the consumer doesn’t find out about the full details of the property until after the purchase when it can be too late.
Let’s walk through an updated 2013 list of items the Tennessee Real Estate Commission requires, for example, for you to purchase land from us while working with one of our licensed Tennessee Real Estate agents here at TNLand.com
- Lot/Land Purchase & Sale Agreement – this is a 9 page document with numerous specifications but in brief it is the actual property contract containing the purchase price, earnest money deposit, closing date, any financing contingencies, any special stipulations, and acceptance of the offer by seller.
- Working with a Real Estate Professional – this discusses the duties and obligations of the real estate agent pursuant to the Tennessee Real Estate Broker License Act while also providing definitions and an explanation of terms often used in real estate.
- Confirmation of Agency Status – this discloses which party the real estate agent is representing; either the buyer or the seller both of which are required to sign off on
- Disclaimer Notice – disclosing that the agent is not an attorney nor structural or environmental engineer and the engaged parties should refer to professionals on any of the matters listed within the document
- Residential Property Condition Disclaimer – discloses any exterior injection wells, if any residence is currently on the property, any percolation tests, if any soil absorption rates have been completed, and if it is located in a Planned Unit Development
- Impact Fees or Adequate Facilities Taxes Disclosure – discloses the amount of any impact fees or adequate facilities taxes paid to city or county that would be passed on to purchaser, if any
- Property Disclosure Statement – disclosing all know facts about the property including any flood zone issues, drainage issues, soil tests, surveys, zoning, restrictions, associations, etc.
- Seller Property Update – disclosing any changes that have occurred since signing the contract (more typical for homes than land and can be signed at closing if preferred)
Not mentioned above is title insurance which protects you in case there are any future disputes as to who has title to the property. Title insurance must be offered to you prior to the closing date and the cost depends on the price of the property. Some people choose to purchase title insurance and others may pass but it is made available to you regardless.
It really isn’t as overwhelming as it seems as our land experts are accustomed to guiding customers through each document to make sure you are 100% comfortable with what you are signing as it is in place to protect everyone involved. I hope this has been educational during your property search and invite you to visit our properties to find the perfect homesite for you.
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