This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
A Tennessee Contract to Sell Commercial Property with Commercial Building — Seller Financing Secured by Mortgage and Security Agreement is a legally binding agreement between the seller and buyer of a commercial property in Tennessee. This contract outlines the terms and conditions of the sale, including the financing arrangement provided by the seller. In this type of contract, the seller provides financing to the buyer, which is secured by a mortgage and a security agreement. This means that the buyer will make regular payments to the seller, including principal and interest, until the agreed-upon purchase price is fully paid. The contract includes various key provisions, such as the purchase price, down payment amount, interest rate, payment schedule, and any penalties or default provisions. It also outlines the responsibilities of both parties during the transaction, including property inspections, title searches, and required documents. Seller financing options may vary depending on the specific agreement. Some different types of Tennessee Contract to Sell Commercial Property with Commercial Building — Seller Financing Secured by Mortgage and Security Agreement include: 1. Fixed Rate Seller Financing: In this type of agreement, the interest rate remains constant throughout the repayment period, providing the buyer with a predictable payment schedule. 2. Adjustable Rate Seller Financing: Here, the interest rate may change periodically, usually based on an index such as the prime rate. This allows the buyer to benefit from potential interest rate fluctuations but introduces uncertainty into the payment schedule. 3. Balloon Payment Seller Financing: This type of agreement involves regular monthly payments, with a large final payment, known as the balloon payment, due at the end of a specified term. It allows the buyer to make smaller payments upfront but requires a significant final payment. 4. Installment Sale Agreement: This involves the buyer making regular payments to the seller over an agreed-upon period before receiving full ownership of the property. It may be used when the seller wants to defer recognizing the entire gain from the sale in a single tax year. 5. Lease with Option to Buy: In this scenario, the buyer leases the commercial property for a set period, with the option to buy the property at the end of the lease term. This allows the buyer to test the viability of the business or secure additional financing before committing to the purchase. When entering into a Tennessee Contract to Sell Commercial Property with Commercial Building — Seller Financing Secured by Mortgage and Security Agreement, it is crucial for both parties to seek legal advice to ensure they understand their rights and obligations. The contract should be thorough, clearly highlighting each party's responsibilities, payment expectations, and any contingencies.
