If you are selling a home in Clarksville or Montgomery County, Tennessee law generally requires you to disclose known material defects before the buyer accepts a purchase contract. You are not required to discover every hidden problem or complete a home inspection, but you must answer the required disclosure questions honestly and in good faith.
For most one- to four-unit residential properties, sellers typically provide a Tennessee Residential Property Condition Disclosure. Some transactions qualify for an exemption, and a buyer may waive the disclosure in favor of an “as-is” disclaimer under specific conditions.
This guide explains the key Clarksville TN disclosure requirements sellers should understand before listing a home. Because disclosure obligations can depend on the facts of your transaction, consult a Tennessee real estate attorney with legal questions.
What Is a Material Defect?
A material defect is generally a condition that could affect the property’s value, desirability, or safety. Tennessee sellers must disclose known material defects, not merely cosmetic issues or ordinary wear and tear.
Examples may include:
- Foundation movement, settling, or structural damage
- Roof leaks or known roof failure
- Recurring water intrusion, flooding, drainage, or grading problems
- Significant plumbing, electrical, heating, or cooling problems
- Sewer or septic system defects
- Fire, storm, earthquake, or other structural damage
- Termite or other wood-destroying insect infestation, damage, or treatment history
- Known environmental hazards, such as radon, asbestos, lead-based paint, contaminated soil, or underground tanks
- Unpermitted additions or repairs
- Known zoning violations, nonconforming uses, or setback violations
- Easements, encroachments, shared driveways, or other ownership-related conditions
- HOA restrictions, special assessments, or material neighborhood nuisances
The issue does not have to make the home unlivable to be material. If a reasonable buyer might consider the information when deciding whether to purchase or what to offer, discuss it with your listing professional and disclose it appropriately.
What Is the Tennessee Disclosure Form?
The standard document is commonly called the Tennessee Residential Property Condition Disclosure. Tennessee REALTORS® Form RF201 is widely used in residential transactions, and the statutory disclosure language appears in Tennessee Code Annotated § 66-5-210.
The form asks about the property’s condition, systems, features, ownership history, and known problems. Depending on the property, questions may address:
- Roof age and type
- Foundation, slab, basement, floors, walls, ceilings, and windows
- Plumbing, electrical, HVAC, heat pump, and central air
- Water supply and wastewater disposal
- Flooding, drainage, grading, and required flood insurance
- Fire, storm, landslide, or other property damage
- Termite contracts and wood-destroying insect concerns
- Septic systems, wells, percolation tests, and sewer moratorium issues
- Sinkholes and exterior injection wells
- Zoning violations, nonconforming uses, and setbacks
- Easements, encroachments, shared features, and access issues
- HOA or condominium obligations
- Unpermitted work, code concerns, lawsuits, citations, and notices
- Leased systems or equipment
- Planned Unit Development status
Complete the form yourself, answer based on your actual knowledge, and clearly identify estimates. Do not guess simply to avoid leaving a question unanswered. If you do not know, use the appropriate unknown response where permitted and provide an explanation when needed.
You can review the commonly used Tennessee Residential Property Condition Disclosure form and discuss the current version with your listing agent.
Do Sellers Have to Disclose Termite or Water Problems?
Yes, if you know about a material problem.
For example, a Clarksville seller should discuss known facts such as:
- A previous termite infestation
- Structural or cosmetic damage caused by termites
- A current or prior termite treatment contract
- Repeated moisture in a crawlspace or basement
- A roof, plumbing, or foundation leak
- Flooding after heavy rainfall
- Mold connected to a known moisture source
- A prior insurance claim involving water or structural damage
Disclosure does not automatically mean you must repair the condition before listing. Tennessee’s disclosure materials explain that sellers generally are not required to repair every disclosed item unless the purchase agreement requires it.
However, withholding known information can create a much greater problem than addressing it early. A buyer’s inspection may uncover the issue, leading to renegotiation, repair demands, a delayed closing, or a claim that the seller failed to disclose a material fact.
What About Zoning, Permits, and Unpermitted Work?
Tennessee’s disclosure form asks sellers about known zoning violations, nonconforming uses, setback violations, unpermitted additions, and work that may not comply with building codes.
This can matter in Clarksville and Montgomery County when a property includes:
- A finished garage or basement
- An added bedroom or bathroom
- An accessory structure
- A converted carport
- A fence or deck near a property line
- A detached workshop or outbuilding
- A septic-related addition
- A home business or other nonconforming use
You should not certify that work was properly permitted if you do not know that to be true. Gather permits, invoices, surveys, warranties, inspection reports, and contractor records before listing. If you are uncertain about zoning or permitting, ask your real estate professional which local office or qualified expert should review the issue.
When Should the Disclosure Be Provided?
For a covered transaction, the seller should provide the disclosure before the buyer accepts a purchase contract. Providing it early helps the buyer evaluate the home and reduces the risk of a late surprise.
You must also disclose material changes or inaccuracies that occur after the original disclosure and before closing. For example, if the HVAC system fails, a new leak develops, or storm damage occurs after the buyer receives the form, update the buyer and document the change.
A disclosure is not a warranty. It also does not replace the buyer’s right to obtain professional inspections. The buyer may still conduct a general home inspection, termite inspection, radon test, sewer scope, septic inspection, well inspection, or other review appropriate for the property.
Are FSBO Sellers Exempt?
Usually, no. Tennessee’s Residential Property Disclosure Act generally applies whether or not a licensed real estate broker assists with the transaction.
A for-sale-by-owner seller may still need to provide the required disclosure or use a permitted disclaimer if the buyer waives the disclosure. Selling without an agent does not remove the seller’s responsibility to provide accurate information or avoid misrepresentation.
FSBO sellers should be particularly careful with:
- The disclosure form
- Purchase contract deadlines
- Inspection contingencies
- Repair negotiations
- Earnest money procedures
- Title and lien issues
- Closing documents
- Changes in property condition before closing
If you are considering FSBO, review Haus’s guide to selling a Clarksville home without a Realtor and obtain legal advice for contract or disclosure questions.
What Transfers May Be Exempt?
Tennessee law provides limited exemptions from the standard disclosure requirement. Depending on the specific facts, exemptions may apply to certain:
- Foreclosure or trustee sales
- Court-ordered or involuntary transfers
- Bankruptcy-related transfers
- Public auction sales
- Transfers by fiduciaries, including some estate, trust, guardianship, or conservatorship transactions
- Transfers between certain family members or co-owners
- Transfers incident to divorce or legal separation
- New construction sold with a written warranty
- Transfers involving an owner who has not occupied the property within the statutory period and has no actual knowledge of its condition
An exemption is not automatically established simply because the property is being sold by an estate, bank, investor, or owner who never lived there. The transaction must fit the applicable statutory requirements.
Even when a disclosure exemption applies, sellers should not make false statements or conceal known defects. Ask your real estate professional or attorney whether an exemption notification should be completed and retained in the transaction file.
What Happens If a Seller Fails to Disclose?
A buyer may have legal remedies for a material misrepresentation or nondisclosure. Potential consequences can include:
- Buyer demands for additional inspections or repairs
- Renegotiation of the purchase price
- Delayed closing
- Contract disputes
- Claims for financial damages
- Allegations of fraud or misrepresentation
- Litigation after closing
The exact remedy depends on the facts, the purchase agreement, the evidence of the seller’s knowledge, and the nature of the undisclosed condition. The Tennessee disclosure form itself directs buyers to consult an attorney regarding potential remedies.
The safest approach is not to hide an issue or assume that “as is” language eliminates every disclosure obligation. Document what you know, disclose it accurately, and let the buyer and the parties’ professionals address the issue through the contract.
Should You Get a Pre-Listing Inspection?
Tennessee does not generally require a seller to obtain a home inspection before completing the disclosure form. Still, a pre-listing inspection can be a practical step, particularly if your home is older or has:
- A crawlspace or basement
- A septic system or private well
- Older roofing, HVAC, plumbing, or electrical components
- A history of leaks, flooding, or moisture
- Extensive renovations
- Previous insurance claims
- Additions or improvements with uncertain permit records
An inspection can help you decide whether to repair, price accordingly, or disclose the condition before the buyer’s inspection. Haus provides additional preparation guidance in its Clarksville seller checklist.
How Do Disclosures Relate to Title Insurance?
Property-condition disclosures address the physical condition and known circumstances surrounding the home. Title work addresses ownership, liens, easements, unpaid obligations, and other title-related matters.
These are separate parts of a real estate transaction, but both can affect closing. Before listing, gather information about mortgages, liens, judgments, surveys, shared driveways, easements, and prior transfers. A title company will conduct the title search and coordinate the closing documents. Review Haus’s guide to title insurance and closing costs when selling a Clarksville home.
A Practical Disclosure Checklist for Clarksville Sellers
Before listing, take these steps:
- Gather repair invoices, warranties, permits, surveys, termite records, and insurance claim information.
- Make a list of known leaks, system failures, structural concerns, and prior damage.
- Review the current Tennessee disclosure form with your listing professional.
- Answer each question truthfully and based on your knowledge.
- Do not guess or minimize a material condition.
- Consider a pre-listing inspection.
- Update the disclosure if the property condition changes.
- Keep copies of all disclosures and supporting documents.
- Ask legal counsel about unusual transfers, exemptions, or potential liability.
- Contact a local Clarksville real estate professional before putting the property on the market.
If you are preparing to sell in Clarksville or Montgomery County, contact Haus Realty & Management for a tailored selling consultation, pricing strategy, and preparation plan.
This article provides general educational information and is not legal advice. Tennessee disclosure requirements can change, and your obligations may depend on the property, the transaction, and the facts known to you. Consult a Tennessee attorney for legal guidance.
Author: Randy Whetsell
