Selling a home can be a complicated process with many moving parts, especially when it comes to the paperwork involved. If you’re planning to sell your house in Knoxville, TN, you need to be prepared to provide and sign several documents that ensure the transaction is legal, transparent, and smooth for all parties involved.

In this comprehensive guide, we’ll walk you through all the essential paperwork you need to sell a house in Knoxville, TN. From the initial listing agreement to the final closing documents, understanding what’s required will help you avoid delays and potential legal issues.

1. Listing Agreement (When Using a Real Estate Agent)

If you choose to sell your Knoxville home through a real estate agent, one of the first pieces of paperwork you’ll encounter is the listing agreement. This is a contract between you and your agent that gives the agent the authority to market and sell your property.

There are typically three types of listing agreements:

Exclusive Right to Sell: The agent has the exclusive right to market and sell your home, and they earn a commission even if you find a buyer on your own.
Exclusive Agency Listing: The agent still has exclusive rights to sell the property, but if you find a buyer on your own, you don’t have to pay the agent a commission.
Open Listing: Multiple agents can list your home, and only the one who brings the buyer earns a commission.

The listing agreement outlines details such as the listing price, commission rate, and the time period the contract will be in effect.

2. Property Disclosure Statement

In Tennessee, sellers are required by law to provide a property disclosure statement to potential buyers. This document informs buyers about the current condition of the property, including any known defects or issues.

The Tennessee Residential Property Disclosure Act requires homeowners to disclose the following, among other things:

Structural issues
Water damage or leaks
Pest infestations (termites, rodents, etc.)
Mold or asbestos
Foundation or roof issues
The presence of hazardous materials
Utility problems or zoning restrictions

Providing an accurate disclosure is crucial, as failing to disclose known problems can lead to legal repercussions. The disclosure form should be completed honestly and in detail to avoid any misunderstandings during the selling process.

3. Title Deed

The title deed is one of the most important documents required when selling your home. It proves that you legally own the property and have the right to sell it.

A clear title ensures that there are no claims, liens, or encumbrances against the property that could prevent the sale from going through. Before the sale, the title will be reviewed by the buyer’s title company to verify that there are no issues.

If there are liens or unresolved claims on the property, you’ll need to resolve them before the sale can be completed. Having a clean title ensures that ownership can be transferred smoothly to the buyer.

4. Mortgage Payoff Statement

If you still have a mortgage on your Knoxville home, you’ll need to provide a mortgage payoff statement from your lender. This document details the exact amount you owe on your mortgage, including any interest, fees, and prepayment penalties.

The mortgage payoff statement is essential because the lender must be paid in full at closing before the sale can be finalized. Your escrow or title company will use this document to ensure that the mortgage is paid off using the proceeds from the sale.

5. Homeowners Association (HOA) Documents (if applicable)

If your property is part of a Homeowners Association (HOA), you’ll need to provide the buyer with the HOA’s governing documents. These typically include:

Covenants, Conditions & Restrictions (CC&Rs): Rules and regulations that homeowners must follow within the community.
HOA bylaws: The operational guidelines of the HOA.
HOA financial statements: Details on the HOA’s financial health, including reserves, budgets, and any upcoming assessments.
HOA fee schedules: Monthly or annual dues, as well as any special assessments.

Providing the HOA documents helps the buyer understand the rules and financial obligations they’ll be taking on when purchasing your property. You should contact your HOA to obtain these documents and ensure they are up-to-date.

6. Contract of Sale (Purchase Agreement)

The contract of sale, also known as the purchase agreement, is a legal document that outlines the terms and conditions of the sale. This contract is typically drafted by the buyer’s agent or attorney and includes:

The sale price
The closing date
Contingencies (e.g., home inspection, financing)
Details of what’s included in the sale (e.g., appliances, fixtures)
The amount of the buyer’s earnest money deposit
Any other special conditions agreed upon by the buyer and seller

Once both parties sign the purchase agreement, it becomes a legally binding contract. It’s crucial to review this document carefully and ensure that all terms are clear and acceptable to both parties before signing.

7. Settlement Statement (HUD-1)

The settlement statement (HUD-1) is a detailed document provided at closing that lists all the costs associated with the sale of the home. This form is required by federal law for real estate transactions that involve financing. If the sale is a cash transaction, a simplified version of the settlement statement may be used.

The HUD-1 form includes:

The sale price of the home
The buyer’s and seller’s closing costs
The amount of the buyer’s loan
Adjustments for taxes, utilities, and other costs
Commission fees for the real estate agents

Both the buyer and seller will receive a copy of the HUD-1, and it’s important to review it closely to ensure all fees and costs are accurate.

8. Bill of Sale for Personal Property

If any personal property (such as appliances, furniture, or fixtures) is included in the sale, a bill of sale should be provided. This document outlines which items are included in the transaction and ensures that both the buyer and seller agree on what is being transferred with the home.

For example, if you are including your refrigerator, washer, or dryer in the sale, the bill of sale will list these items and confirm that they are part of the deal.

9. Lead-Based Paint Disclosure

If your home was built before 1978, you are required by federal law to provide a lead-based paint disclosure to the buyer. This document informs the buyer if there is any known lead-based paint in the home, and it provides them with information about the risks associated with lead exposure.

Failure to provide this disclosure can result in legal penalties, so it’s essential to ensure that this document is included in the sale if applicable.

10. Warranty Deed

The warranty deed is the document that officially transfers ownership of the property from the seller to the buyer. This document guarantees that the seller holds clear title to the property and has the legal right to transfer it. The warranty deed will be signed at closing and recorded with the local county office.

Once the warranty deed is recorded, the buyer becomes the official owner of the property, and the sale is complete.

11. Proof of Repairs (if applicable)

If you’ve agreed to make any repairs as part of the sale, you’ll need to provide proof of repairs at closing. This typically includes receipts or invoices from contractors and service providers showing that the agreed-upon repairs have been completed.

This documentation ensures that the buyer receives the home in the condition agreed upon in the contract of sale.

12. Closing Disclosure

The closing disclosure is provided by the lender (if the buyer is financing the purchase) and outlines the final terms and costs of the buyer’s mortgage. This document is required by federal law and must be provided to the buyer at least three days before closing.

While the closing disclosure is primarily for the buyer, it’s important for the seller to review it as well to ensure that all terms align with the purchase agreement and settlement statement.

Conclusion: Be Prepared with the Right Paperwork

Selling a house in Knoxville, TN, requires careful attention to the paperwork involved. From the listing agreement to the final closing documents, having all the necessary forms prepared will help ensure a smooth and successful sale. Whether you’re selling with an agent or on your own, understanding the required paperwork will save you time, avoid delays, and reduce potential legal issues.

At East Tennessee Home Buyers LLC, we specialize in making the home-selling process as simple and stress-free as possible. If you’re ready to sell your Knoxville home quickly and without the hassle of traditional paperwork, contact us today for a free, no-obligation offer. We handle all the documentation for you, so you can focus on what matters most: moving forward.