Navigate Realty – Buyer's Offer Guide: RF401 Purchase & Sale Agreement

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Important Reminder: This guide is for educational purposes. The RF401 is a legal document. Always consult your broker or supervising agent before submitting offers independently. When in doubt, ask.

📋 What's Covered in This Guide

01 Before You Write the Offer

02 Property & Party Information

03 Purchase Price & Financing

04 Appraisal Contingency

05 Earnest Money / Trust Money

06 Closing Date & Possession

07 Inspections

08 Lead-Based Paint & Disclosures

09 Items Included / Excluded

10 Complete Offer Submission Checklist

11 Key Deadlines Quick Reference

12 Pro Tips & Common Mistakes

Before You Write the Offer — Prepare Your Buyer

What You Need Before Opening the Contract

Pre-Approval Letter — Must be from a licensed lender, dated within 90 days, showing loan type, amount, and property address if possible. This submits with the offer.
Buyer's Full Legal Name(s) — Confirm exactly how they want to hold title (individual, joint tenants, tenants in common, LLC, trust, etc.)
Cash Proof of Funds — If waiving financing contingency, need a current bank/brokerage statement. Required within 5 days of Binding Agreement Date.
Contact Info for Lender — You will need to notify Seller within 3 days of Binding Date that buyer applied for the loan.
Desired Closing Date — Confirm with lender what's realistic (typically 30–45 days for conventional, longer for FHA/VA).
Inspection Period Preference — Typical is 10–15 days. Confirm buyer's availability to schedule inspections quickly.
Earnest Money Amount & How It's Being Paid — Check, wire, or certified funds. Confirm holder (often listing firm or title company).

Section 1 — Property & Party Information

RF401 Lines 1–22

Fill In These Fields Accurately

Buyer Name(s): Full legal name as it will appear on the deed. No nicknames.
Seller Name(s): Pull from public records or MLS — must match exactly how they hold title.
Property Address: Full street address, city, Tennessee, zip code.
Legal Description: Deed book(s), page(s), and/or instrument number from county register. Pull from county property records or ask for it.
Items Included (Section A): The form lists many standard inclusions. Review with your buyer. No changes needed unless something specific should be excluded.
Items That Remain at No Cost (Section B): List any additional items seller agreed to leave (e.g., extra refrigerator, play set).
Items That Shall NOT Remain (Section C): List anything you want excluded (e.g., dining room chandelier, security camera system).
Leased Items (Section D): Ask the listing agent — water softeners, security systems, propane tanks may be leased. If buyer doesn't want to assume, check the box and identify the item.
Fuel (Section E): Fuel in tank (propane, oil) is prorated at closing market price — no action needed, just know it's automatic.

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Agent Tip: Always verify the MLS listing for included/excluded items. If the seller has a chandelier they love, make sure it's listed under Section C (Shall NOT remain) before you submit the offer.

Section 2 — Purchase Price, Method of Payment & Financing

RF401 Lines 38–101

Purchase Price

Write out the dollar amount in full (e.g., $425,000) — no abbreviations. This is what your buyer is offering.
Confirm with buyer how funds will be disbursed: Federal Reserve Bank wire, Cashier's Check, or seller-approved form.

Section 2A — Financing Contingency (Most Common)

Loan Amount %: Fill in the percentage (e.g., 97% for FHA, 95% for conventional, 100% for VA/USDA).
Loan Type: Check the correct box — Conventional, FHA (attach addendum), VA (attach addendum), Rural Development/USDA, or Other.
Buyer is obligated to apply within 3 business days of Binding Date and notify you immediately.
Within 14 days of Binding Date, buyer must confirm: hazard insurance secured, Intent to Proceed sent to lender, appraisal ordered and fee paid.
Buyer must pursue loan diligently and not intentionally change their financial condition.

Section 2B — Financing Contingency WAIVED (All Cash)

Check this box only if buyer is paying all cash or does not want the financing contingency.
Buyer must provide proof of funds within 5 days of Binding Date (bank statement, lender commitment letter).
Failure to provide proof = Buyer in default. Seller may terminate.

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Never check 2B for a financed buyer! This box waives ALL financing protection. If buyer's loan falls through, they could lose their earnest money.

Section 2D — Closing Expenses

Seller Typically Pays

Existing loan payoffs, release fees, seller's closing fee, deed prep, outstanding HOA dues, lien payoffs, FIRPTA withholding if applicable

Buyer Typically Pays

Transfer taxes, recording fees, buyer's closing fee, loan origination/discount points, appraisal, credit report, title insurance, hazard/flood/PMI premiums

        Seller Concessions / Credits: If you've negotiated a seller credit toward closing costs, spell it out in the Special Stipulations section (Section 21) and confirm it fits within lender guidelines. Example: "Seller agrees to contribute up to $X toward Buyer's closing costs and/or prepaids."
      

Section 2C — Appraisal Contingency

RF401 Lines 102–119

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Must select one option — only one can be active at a time. Unselected sections do NOT apply.

Option 1 — Appraisal NOT a Contingency

Check this when: buyer is waiving appraisal protection (competitive offers). If property appraises low, buyer cannot terminate based on appraisal alone. Failure to appraise cannot be basis for loan denial or termination.

Option 2 — IS Contingent on Appraisal Most Common

Check this when: buyer wants protection. If appraised value is less than purchase price, buyer has 3 days to either waive the contingency OR terminate and receive earnest money back.

      If using a financed loan, the appraisal is typically required by the lender regardless. For FHA/VA loans, always check Option 2.
    

If appraisal contingency is in effect, buyer must order appraisal within 5 days of Binding Date and provide name/phone of appraisal company to seller.
If appraisal comes in low and buyer is in Option 2: buyer notifies seller via Notification Form. Buyer then has 3 days to waive or terminate.
If buyer fails to respond within 3 days → contingency is deemed satisfied (buyer is stuck with the price).

Section 3 — Earnest Money / Trust Money

RF401 Lines 162–192

What to Fill In

Days to Pay: Typically within 2–3 days of Binding Date. Confirm with listing agent what they require.
Name of Holder: Usually the listing brokerage or a title company. Ask the listing agent.
Address of Holder: Full address of the holding firm.
Dollar Amount: Typically 1%–2% of purchase price. In competitive markets, more earnest money signals serious intent. Confirm with buyer.
Payment Method: Check (most common) or wire transfer. Fill in the specific type.

What Happens to Earnest Money

Scenario	What Happens
Transaction closes	Applied as credit toward buyer's purchase price
Buyer defaults	Forfeited to Seller as liquidated damages
Seller defaults	Returned to Buyer
Loan denial (with financing contingency)	Returned to Buyer upon proper notification
Appraisal contingency triggered & buyer terminates	Returned to Buyer
Inspection termination (within inspection period)	Returned to Buyer
Dispute	Held until mutual agreement, court order, or arbitration

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Earnest Money Not Received on Time? Holder notifies both parties. Buyer has 1 day to deliver funds in immediately available form. Failure = Buyer default. Seller may terminate.

Section 4 — Closing Date, Possession & Prorations

RF401 Lines 193–231

Closing Date

Fill in the specific day of month, month, and year (e.g., July 15, 2026).
Agreement expires at 11:59 p.m. on the Closing Date if not closed.
Any extension must be in writing via the Closing Date/Possession Date Amendment.
Confirm realistic timeline with lender before writing the date.

Possession — Select One

At Closing Most Common

Check this box. Buyer gets possession when deed is delivered and purchase price is paid. Keys handed over at or after closing.

Temporary Occupancy Agreement

Check this box if seller needs to stay after closing OR buyer needs access before closing. Attach the Temporary Occupancy Agreement addendum. Rare — confirm with broker.

Prorations (Automatic)

Real estate taxes, rents, dues, maintenance fees, and HOA fees are prorated as of closing date — no action required, handled by closing attorney.
If Greenbelt classification applies, check the appropriate box (buyer intends to maintain, or doesn't — in which case rollback taxes are paid by seller at closing).

Section 8 — Inspections & Resolution

RF401 Lines 276–354

Buyer's Inspection Period — Fill In the Days

Fill in the number of days for the Inspection Period (typically 10–15 days from Binding Date).
Fill in the number of days for the Resolution Period (typically 3–5 days after Buyer submits repair list).
Seller must cause all utilities, pool, spa, and similar items to be operational so Buyer can complete all inspections.

Inspection Options — Select the Right One

Option	What It Means	When to Use
Standard Inspection (D3)	Buyer inspects, then submits written repair list. Seller and Buyer negotiate repairs during Resolution Period. Agreement terminates at end of Resolution Period if no resolution unless extended, accepted AS IS, or buyer accepts.	Default — Use in most transactions
Waive Repair Request (D3 checked)	Buyer retains right to inspect but waives the right to ask for repairs. Buyer can still terminate and receive earnest money back if they don't like what they see.	Competitive offers where seller won't negotiate repairs
Waiver of All Inspections (E)	Buyer waives ALL inspection rights entirely. Must check the box. Buyer accepts property as-is with zero protections.	Extreme — Only in competitive situations, after buyer consents knowingly

Buyer's Options at End of Inspection Period

Terminate with written notice and receive earnest money back.
Accept property AS IS via Notification Form.
Submit repair/replacement list (Repair/Replacement Proposal) to seller — triggers Resolution Period.

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Missing the Inspection Deadline forfeits ALL inspection rights. Buyer must accept property in current condition. Set calendar reminders the moment the offer is accepted!

Required Inspections to Know About

Home Inspection — Must be conducted by a Tennessee-licensed Home Inspector. Buyer's expense unless otherwise agreed.
Wood Destroying Insect (WDI/Termite) — Buyer's expense (unless otherwise stipulated). Must be by a TN licensed & chartered pest control operator.
Septic Inspection — Buyer's expense. Highly recommended for properties not on public sewer.
Well Water Test — Buyer's expense. Required for properties on well water.
Final Inspection — Fill in the number of days before closing (typically 1–3 days). Confirms property is in same or better condition as Binding Agreement Date.

Section 7 — Lead-Based Paint Disclosure

RF401 Lines 274–275

Does NOT Apply

Check this box if the property was built in 1978 or after. No LBP addendum needed.

Does Apply Attach Addendum

Check this box if the property was built before 1978. You MUST attach the Lead-Based Paint Disclosure form, signed by buyer AND seller. Buyer must have a 10-day window to conduct LBP inspection (unless waived in writing).

Other Required Disclosures to Submit with the Offer

Tennessee Residential Property Condition Disclosure (PCD) — Seller completes this form. As buyer's agent, you should request it before writing the offer. If not available, make it a condition that it be provided within X days of binding date.
Consumer Notice — Tennessee agency disclosure form. Must be signed before showing properties. Should already be signed before this step.
Wire Fraud Warning — Prominently printed on the contract (Lines 583–587). Make sure your buyer is aware of this. Never send wiring instructions via email without verbal confirmation to a trusted, verified phone number.

Sections 2D, 15, 17 — Other Critical Fields

RF401 Lines 120–161, 421–428

Closing Agency Information (Lines 158–161)

Fill in Buyer's Closing Agency name and contact information. This is usually a title company or closing attorney. Confirm with your buyer or lender before submitting — this can also be left for lender to determine.

Home Protection Plan — Section 15 (Lines 421–426)

Home Protection Plan

Check this and fill in provider & cost if your buyer wants a home warranty funded at closing. This is not a substitute for home inspection.

Waived

Check this if buyer does not want a home warranty. One of these two boxes must be checked.

Special Stipulations — Section 21 (Lines 510–534)

This is where you add anything NOT already covered in the standard contract: seller credits, furniture, early access, contingencies on sale of another property, earnest money release conditions, etc.
Be specific and clear. Vague language leads to disputes.
Special Stipulations control over preceding sections if there is a conflict.
Examples: "Seller to provide $5,000 credit toward Buyer's closing costs at Closing," "Refrigerator in garage to convey with property at no additional cost," "Sale contingent upon Buyer's sale of [address] by [date]."

Time Limit of Offer — Section 22 (Lines 576–577)

Fill in the time (a.m./p.m.) and date the offer expires if not countered or accepted.
Typical: 24–48 hours. In hot markets, you may set a shorter expiration (e.g., by 5 p.m. same day).
Offer may be withdrawn at any time before acceptance with proper notice.

📎 Complete Offer Submission Checklist

Everything that should go with your offer package — double-check before hitting send.

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RF401 Purchase & Sale Agreement Fully completed, all blanks filled. Buyer signed on Page 12 with date & time.

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Pre-Approval Letter From licensed lender, current, matching loan type checked on contract.

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Proof of Funds (Cash offers) Bank/brokerage statement showing sufficient funds to close.

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Lead-Based Paint Disclosure Only if property built before 1978. Buyer signed, boxes completed.

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FHA or VA Addendum Required when FHA or VA loan type is checked. Attach completed addendum.

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Consumer Notice (Agency Disclosure) Must be signed before making offer. Keep in file — usually not submitted but should be completed.

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Earnest Money — Confirmation to Buyer Remind buyer when and how to deliver earnest money immediately after binding date.

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Any Other Addenda Referenced Rural Development addendum, Temporary Occupancy Agreement, Special Stipulations, etc.

Key Deadlines Quick Reference — After Binding Agreement Date

Deadline	Action Required	Who	Consequence if Missed
2–3 days	Deliver Earnest Money to Holder	Buyer	Buyer in default; Seller may terminate
3 days	Apply for mortgage loan; provide lender name/contact to Seller	Buyer	Seller may demand compliance; Buyer in default if not cured in 2 days
5 days	Provide proof of funds (cash offers); order appraisal (if appraisal contingency)	Buyer	Seller may demand compliance; potential default
14 days	Confirm: hazard insurance secured, Intent to Proceed with lender, appraisal ordered/paid	Buyer	Seller may demand compliance and terminate if not cured
Inspection Period (fill in days)	Complete all inspections; submit repair request or accept AS IS or terminate	Buyer	Forfeits all inspection rights; must accept property as-is
Resolution Period (fill in days)	Seller and Buyer negotiate repairs; sign Repair/Replacement Amendment	Both	Agreement terminates; earnest money returned to Buyer
7 days before Closing	Seller delivers HOA lien payoff/estoppel letter (if applicable)	Seller	Seller default
Closing Date	Transaction must close by 11:59 p.m.	Both	Agreement expires (rights to pursue remedies survive)

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Pro Tip: The moment an offer is accepted, immediately enter ALL deadlines into your calendar with reminders. Missed deadlines are the #1 source of agent liability in real estate transactions.

Navigate Realty Pro Tips & Common Mistakes to Avoid

Common Mistakes New Agents Make

Leaving blanks empty — Per the contract, any blank not completed is deemed zero or not applicable. Every blank must be intentionally filled in.
Checking boxes that aren't meant to be checked — Many provisions (like Financing Contingency Waived, Waiver of All Inspections) require the box to be checked to be part of the agreement. Don't check them accidentally.
Wrong loan type selected — FHA and VA require addenda. Conventional does not. Check with the lender before writing the offer.
Not confirming the earnest money holder — Always ask the listing agent. Getting it wrong causes delays and disputes.
Forgetting the offer expiration — An offer with no expiration time can hang in limbo. Always fill in Section 22.
Not setting calendar reminders for deadlines — Inspection period, earnest money, loan application — these are not optional and missing them hurts your buyer.
Using email for wiring instructions — Wire fraud is real. ALWAYS verbally confirm wiring instructions using a verified phone number from your own research, never from an email.

Making a Competitive Offer — Strategies

Offer over list price if comps support it and buyer is willing.
Increase earnest money (2%–3% signals seriousness).
Shorten inspection period (7–10 days vs. 15).
Waive or limit repair requests (Section D3 checkbox).
Offer seller their preferred closing date (ask listing agent).
Attach a strong pre-approval from an established local lender.
Consider an escalation clause in Special Stipulations.
Waive appraisal contingency only if buyer has cash reserves to cover a gap AND consents knowingly after explanation.

After the Offer is Accepted — Your Immediate Action Items

Day 0 — Binding Agreement Date

Enter ALL deadlines in calendar. Notify buyer. Send copy to all parties. Note the exact time of acceptance for the Acknowledgement of Receipt.

Within 24 hours

Remind buyer to deliver earnest money. Send contract to lender. Order title search (if your role).

Day 3

Confirm buyer has applied for loan. Buyer notifies seller via Notification Form with lender name/contact.

Day 5

Confirm appraisal ordered (if applicable). Cash buyers provide proof of funds.

Day 14

Confirm buyer has: hazard insurance lined up, Intent to Proceed sent, appraisal paid.

Inspection Period End

Ensure buyer's written response is submitted — terminate, accept AS IS, or submit repair list.

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Navigate Realty Standard of Excellence: Always review the fully completed contract with your buyer before submitting. Walk them through every section. An informed buyer makes better decisions and fewer panicked calls. When in doubt, call your broker — that's what we're here for.

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Questions? Ask Your Broker Team

Have a question about this guide, a specific contract situation, or need clarification on a section? Submit it below and someone from the Navigate Realty team will follow up.

Writing Your First Offerwith Confidence