Tennessee Realtor State Practice Exam

In Tennessee, what must happen before a sale can officially close?

1. All parties must agree on the sale price

2. Inspection of the property must be completed

3. All paperwork must be signed and funds transferred

4. The buyer must secure mortgage approval

The correct answer is: All paperwork must be signed and funds transferred

Before a sale can officially close in Tennessee, all paperwork must be signed and funds transferred. This process is crucial to ensure that the legal transfer of property occurs smoothly. The closing process involves various documents, such as the purchase agreement, disclosures, and settlement statements, which all need the signatures of the relevant parties. Additionally, the transfer of funds is essential to finalize the sale; without the funds being exchanged, the transaction cannot be completed. While agreeing on the sale price, completing an inspection, and securing mortgage approval are important steps in the home buying process, they are not the final requirements needed for closing. The documents must be executed to reflect the agreement and confirm that all conditions of the sale are met, thus allowing for the official transfer of ownership.