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When you buy a home in Gatlinburg Tennessee,
you must sign an agreement of sale. Normally, your real estate broker will
give you a preprinted form of agreement of sale. You may make changes or
additions to the form agreement, but the seller must agree to every change
you make. You should also agree with the seller on when you will move in
and what appliances and personal property will be sold with the home.
Sales Price. For most home purchasers, the sales price is the most
important term. Recognize that other non-monetary terms of the agreement
are also important.
Title. "Title"
refers to the legal ownership of your new home. The seller should provide
title, free and clear of all claims by others against your new home.
Claims by others against your new home are sometimes known as
"liens" or "encumbrances." You may negotiate who will
pay for the title search which will tell you whether the title is
"clear."
Mortgage Clause. The agreement
of sale should provide that your deposit will be refunded if the sale has
to be canceled because you are unable to get a mortgage loan. For example,
your agreement of sale could allow the purchase to be canceled if you
cannot obtain mortgage financing at an interest rate at or below a rate
you specify in the agreement.
Pests. Your lender will
require a certificate from a qualified Gatlinburg Tennessee inspector stating that
the home is free from termites and other pests and pest damage. You may
want to reserve the right to cancel the agreement or seek immediate
treatment and repairs by the seller if pest damage is found.
Home Inspection. It is a good
idea to have the home inspected. An inspection should determine the
condition of the plumbing, heating, cooling and electrical systems. The
structure should also be examined to assure it is sound and to determine
the condition of the roof, siding, windows and doors. The lot should be
graded away from the house so that water does not drain toward the house
and into the basement.
Most buyers prefer to pay for these
inspections so that the inspector is working for them, not the seller. You
may wish to include in your agreement of sale the right to cancel, if you
are not satisfied with the inspection results. In that case, you may want
to re-negotiate for a lower sale price or require the seller to make
repairs.
Lead-Based Paint. If you buy a
home built before 1978, you have certain rights concerning lead-based
paint and lead poisoning hazards. The seller or sales agent must give you
the EPA pamphlet "Protect Your Family From Lead in Your Home" or
other EPA-approved lead hazard information. The seller or sales agent must
tell you what the seller actually knows about the home’s lead-based
paint or lead-based paint hazards and give you any relevant records or
reports.
You have at least ten (10) days to do
an inspection or risk assessment for lead-based paint or lead-based paint
hazards. However, to have the right to cancel the sale based on the
results of an inspection or risk assessment, you will need to negotiate
this condition with the seller.
Finally, the seller must attach a
disclosure form to the agreement of sale which will include a Lead Warning
Statement. You, the seller, and the sales agent will sign an
acknowledgment that these notification requirements have been satisfied.
Other Environmental Concerns.
Your city or state may have laws requiring buyers or sellers to test for
environmental hazards such as leaking underground oil tanks, the presence
of radon or asbestos, lead water pipes, and other such hazards, and to
take the steps to clean-up any such hazards. You may negotiate who will
pay for the costs of any required testing and/or clean-up.
Sharing of Expenses. You need
to agree with the seller about how expenses related to the Gatlinburg Tennessee
property such as taxes, water and sewer charges, condominium fees, and
utility bills, are to be divided on the date of settlement. Unless you
agree otherwise, you should only be responsible for the portion of these
expenses owed after the date of sale.
Settlement Agent/Escrow Agent or
Company. Depending on local practices, you may have an option to
select the settlement agent or escrow agent or company. For states where
an escrow agent or company will handle the settlement, the buyer, seller
and lender will provide instructions.
Settlement Costs. You can
negotiate which settlement costs you will pay and which will be paid by
the seller.
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