Can this form be signed electronically?

Yes. Electronic signatures generally satisfy enforceability standards under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA laws, provided the parties consent and the record is retained. Exceptions exist for documents explicitly excluded by statute; confirm the transaction is not excluded.

Do I need a notary to record an option?

Most counties require a notarized acknowledgement for any instrument submitted for recording. If you plan to file a memorandum, obtain a proper notary acknowledgement or use approved Remote Online Notarization where state law permits.

What if the option term expires?

Once the stated option term lapses without exercise, the buyer loses the exclusive right unless the parties agree to an extension in writing. Consider including notice procedures for exercising the option to avoid disputes.

How can an option be revoked?

Revocation requires mutual agreement and written documentation; unilateral revocation by seller may be a breach if consideration was paid and option remains in force. Consult counsel for statutory or equitable implications.

Are witnesses required for recording?

Witness requirements vary by state and by instrument type. Deeds and many conveyances require only notarization, while some states (e.g., Florida) require two witnesses for certain instruments; follow local recording rules.

Can the option be assigned to another buyer?

Assignment depends on the option’s assignment clause. If assignments are permitted, document the transfer and confirm any required consents or notice to the seller to ensure enforceability.

Electronic Signature
Templates
Other
Tennessee Option to Purchase Form

Tennessee Option to Purchase Form

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

TENNESSEE OPTION TO PURCHASE PACKAGE

Control Number: TN-P069-PKG

TABLE OF CONTENTS

I. Form List with descriptions

II. Descriptions of Forms

III. Legal Document Storage information

IV. Tips on Completing the Forms

V. Disclaimer

I. FORM LIST

With your Option to Purchase package, you will find the forms that assist in successfully securing a right to purchase or sell property, according to terms agreed upon in advance.

Included in your package are the following forms:

1. Option to Purchase Addendum to Residential Lease

2. Residential Lease Agreement

3. Option For the Sale and Purchase of Real Estate - Residential Lot or Land

4. Option For the Sale and Purchase of Real Estate - Residential Home

5. Option For the Sale and Purchase of Real Estate - Commercial Lot or Land

6. Option For the Sale and Purchase of Real Estate - Commercial Building

7. Option For the Sale and Purchase of Real Estate - Farm Land

8. Option For the Sale and Purchase of Real Estate - General Form

II. DESCRIPTIONS OF FORMS

Brief descriptions of the forms contained in your U.S. Legal Forms™ Option to Purchase package are found below.

Option to Purchase Addendum to Residential Lease - This Option to Purchase Addendum to Residential and Lease Agreement is entered into by and between the lessor and the lessee. The lessor agrees not to offer the residence for sale to anyone during the term of the lease, and to give the lessee (tenant) the option to purchase the residence at any time prior to the expiration of the lease, provided the lessee gives notice of intent to purchase in accordance with the provisions of the Addendum.

Residential Lease Agreement - This Residential Lease Agreement and Option to Purchase is entered into by and between the lessor and the lessee. This agreement provides that the lessor will rent to the lessee a personal residence located at the address listed in the agreement.

Option For the Sale and Purchase of Real Estate - Residential Lot or Land - This form is for an option to purchase a residential real estate lot or tract of land.

Option For the Sale and Purchase of Real Estate - Residential Home - This form is for an option to purchase a residential home.

Option For the Sale and Purchase of Real Estate - Commercial Lot or Land - This form is for an option to purchase a commercial lot or land.

Option For the Sale and Purchase of Real Estate - Commercial Building - This form provides a buyer with an exclusive and irrevocable option to purchase commercial building real estate.

Option For the Sale and Purchase of Real Estate - Farm Land - This form is for an option to purchase farm land and includes all terms of the transaction.

Option For the Sale and Purchase of Real Estate - General Form - This form is adaptable for general use as an agreement to purchase an option on real estate.

III. LEGAL DOCUMENT STORAGE

Once you prepare legal documents and forms in your U.S. Legal Forms™ Specialty Package, it is highly recommended that you keep forms together.

IV. TIPS ON COMPLETING THE FORMS

The form(s) in this packet may contain “form fields” created using Microsoft Word or Adobe Acrobat (“.pdf” format).

They do not limit your ability to print the form “in blank” and complete with a typewriter or by hand.

It is also helpful to be able to see the location of the form fields. Go to the View menu, click on Toolbars, and then select Forms.

V. DISCLAIMER

All forms in this package are provided without any warranty, express or implied, as to their legal effect and completeness. Please use at your own risk.

THESE MATERIALS ARE PROVIDED “AS IS” WITHOUT ANY EXPRESS OR IMPLIED WARRANTY OF ANY KIND INCLUDING WARRANTIES OF MERCHANTABILITY, NONINFRINGEMENT OF INTELLECTUAL PROPERTY, OR FITNESS FOR ANY PARTICULAR PURPOSE.

Lessor Name:

Lessee Name:

Property Address:

Effective Date:

Comments / Additional Notes:

Lessor Signature:

Date:

Lessee Signature:

Date:

Agreements:

I acknowledge receipt of legal document storage information.

I understand the disclaimer and terms above.

What the Tennessee Option to Purchase Form Is

The Tennessee Option to Purchase Form is a written agreement giving a prospective buyer the exclusive right, for a defined period, to purchase specific real property at agreed terms in exchange for consideration. It is not a deed but creates a contractual right; closing requires a separate conveyance. The option can be recorded in the county register to provide public notice. Electronic execution is generally permitted under federal ESIGN (15 U.S.C. ch. 96) and state UETA law where applicable, subject to certain statutory exceptions.

Why a Formal Option to Purchase Matters

A documented option secures exclusive purchase rights, fixes price and timeline, and creates enforceable obligations for consideration, while allowing the seller to retain title until closing.

Who Typically Uses a Tennessee Option to Purchase

The form is used by parties who need a temporary, enforceable purchase right without immediate conveyance.

Buyers and investors seeking time to complete inspections, financing, or due diligence before committing to purchase.
Sellers who want to lock in a potential sale at a negotiated price while retaining ownership until closing.
Real estate brokers, attorneys, and lenders facilitating conditional sale terms and protecting client interests.

Use the form when a short-term hold, due diligence period, or negotiated purchase window is required.

Step-by-step: Completing an Option to Purchase

Follow these four steps to prepare, execute, and protect an option to purchase in Tennessee.

01

Prepare: Draft full legal description and define option consideration.
02

Define Terms: Specify option period, purchase price, conditions, and assignment rules.
03

Execute: All parties sign; notarize signature if recording is intended.
04

Record/Distribute: Record memorandum where desired and provide copies to parties.

Digital Execution and Distribution Requirements

Decide whether to execute on paper or electronically and confirm format and authentication requirements before sending.

File Formats: PDF and DOCX accepted
Authentication: Email or SMS code options
Integrations: Common CRM and storage links

Configuring an Online Option-to-Purchase Workflow

Set up fields, signer order, and authentication to match the legal execution sequence.

Field \| Configuration	Placement \| Required/Conditional
Property Description	Locked text \| Required
Signature	Signer field \| Required with date
Notary Acknowledgement	Optional field \| Required if recording
Audit Trail	Enable \| Capture IP, timestamp

How eSubmission Typically Works

A concise flow from document setup to signed, recorded, and distributed copies.

Upload: Upload final draft to signing platform.
Assign Fields: Place name, signature, and date fields.
Authenticate: Send link with chosen authentication.
Complete: Collect signed copies and audit log.

Core Components of a Professional Tennessee Option to Purchase

A complete option should address timing, price, transfer mechanics, and dispute resolution to reduce ambiguity and support enforceability.

Option Period

Defines the start and end dates when the buyer may exercise the option. Be precise about time zones and deadlines to prevent disputes over late exercises.

Purchase Price

Specifies the fixed sale price or the pricing formula. Include any adjustments, prorations, or credits that apply at closing to avoid later disagreement.

Legal Description

Includes full deed legal description to clearly identify the property. Attach exhibits when the property is part of a larger parcel or has easements.

Consideration

States the amount paid for the option and whether it is credited at closing or forfeited on non-exercise. Clarify payment timing and escrow handling.

Recording and Notice

Addresses whether a memorandum or notice will be filed in the county register. Recording provides public notice but does not transfer title.

Assignment and Termination

States whether the option may be assigned and the circumstances for termination, including default, bankruptcy, or failure to obtain financing.

Downloading, Saving, and Supporting Documents

Preserve signed documents in durable formats and bundle supporting records needed for recording and closing.

Download Formats

Save signed copies as PDF/A for long-term retention; retain original executed PDF with audit trail metadata embedded.

Save Best Practices

Store executed copies in encrypted cloud storage and local backup. Maintain a version history and a signer audit log for disputes.

Supporting Documents

Include proof of payment of consideration, title search results, property exhibits, and any financing condition documents with the file.

Recording Copy

Prepare a short memorandum if recording is desired and follow county clerk formatting and fee requirements for recordation.

Key Risks and Consequences of Errors

Unrecorded Notice: Priority loss

Ambiguous Description: Enforceability dispute

Incorrect Parties: Voidable obligation

Missing Consideration: Contract invalidity

Expired Term: Loss of rights

Improper Notarization: Recording rejection

Common Mistakes to Avoid

Using an informal street address instead of the full legal description leads to ambiguity and recording rejections.
Failing to specify whether option consideration is refundable or credited at closing can produce later payment disputes.
Skipping notarization when intending to record a memorandum may prevent entry in county records and reduce priority.
Relying on minimal signer authentication for high-value transactions increases litigation risk over signature attribution.

Who Has Authority to Sign an Option to Purchase

Individual Buyer

The individual listed as buyer must sign in full. If signing through an agent, provide a dated power of attorney or corporate authorization showing explicit authority to bind the buyer before execution.

Entity Representative

For corporate or LLC sellers and buyers, an officer or authorized manager must sign and include title; attach a corporate resolution or certificate of incumbency when authority is not clearly shown on public records.

Notarization and Recording: Practical Steps

Follow these steps when notarizing and recording to ensure the option or its memorandum is accepted by the county register.

01

Prepare Executed Copy

Provide a clean signed original for notarization and recording.

02

ID Verification

Signer must present government ID to the notary.

03

Notary Acknowledgement

Complete formal notary block per state rules.

04

RON Alternative

Use Remote Online Notarization only if permitted by state law.

05

County Clerk Submission

Submit the required number of copies and pay recording fees.

06

Obtain Stamped Copy

Keep a stamped recorded copy for the title file.

07

Distribute Copies

Provide recorded copies to buyer, seller, and their counsel.

08

Retain Originals

Store executed originals securely per retention policy.

eSignature Vendor Comparison for Executing an Option to Purchase

A concise comparison of common eSignature providers and features relevant to executing and storing option agreements; signNow is shown first per vendor ordering rules.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Real-World Use Cases

Two concise examples show typical scenarios where an option to purchase is practical.

Investor Secures Development Site

An investor obtains a one-year option to purchase a parcel near transit

Option includes a right to extend for additional consideration
With clear legal description and recording of a memorandum, the investor preserves exclusivity while seeking permits and financing, protecting investment without immediate title transfer.

Seller Manages Multiple Offers

A seller grants a short option to a preferred buyer during marketing

Option consideration is credited at closing
The seller retains market flexibility while assuring the buyer an exclusive window to perform inspections and secure financing.

Practical Tips for Accurate Completion

Follow these drafting and administrative practices to reduce friction at exercise and closing.

Use Precise Language

Avoid ambiguous terms and define all deadlines clearly. State times in MM/DD/YYYY and specify cut-off times to prevent late-exercise disputes; attach exhibits for complex property descriptions.

Confirm Authority

Verify and document the signatory’s authority when entities sign. Attach corporate resolutions or powers of attorney to the executed form to prove binding authority during title review.

Decide on Recording

Choose whether to record a memorandum. Recording provides public notice and priority but may require notary acknowledgment and adherence to county clerk formatting rules.

Retain Audit Evidence

If executed electronically, preserve the audit trail showing signer identity, timestamps, and IP addresses. Maintain signed PDFs with embedded metadata to support enforceability.

FAQs and Troubleshooting

Common questions about execution, recording, revocation, and electronic signing are answered below for practical clarity.

Need help? Contact support

Can this form be signed electronically?
Yes. Electronic signatures generally satisfy enforceability standards under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA laws, provided the parties consent and the record is retained. Exceptions exist for documents explicitly excluded by statute; confirm the transaction is not excluded.
Do I need a notary to record an option?
Most counties require a notarized acknowledgement for any instrument submitted for recording. If you plan to file a memorandum, obtain a proper notary acknowledgement or use approved Remote Online Notarization where state law permits.
What if the option term expires?
Once the stated option term lapses without exercise, the buyer loses the exclusive right unless the parties agree to an extension in writing. Consider including notice procedures for exercising the option to avoid disputes.
How can an option be revoked?
Revocation requires mutual agreement and written documentation; unilateral revocation by seller may be a breach if consideration was paid and option remains in force. Consult counsel for statutory or equitable implications.
Are witnesses required for recording?
Witness requirements vary by state and by instrument type. Deeds and many conveyances require only notarization, while some states (e.g., Florida) require two witnesses for certain instruments; follow local recording rules.
Can the option be assigned to another buyer?
Assignment depends on the option’s assignment clause. If assignments are permitted, document the transfer and confirm any required consents or notice to the seller to ensure enforceability.

Explore Templates

South Carolina Disclosure South Carolina Disclosure Residential Property Form Contract for the Sale and Purchase of Real Estate South Carolina Premarital Agreement South Carolina Notice of Project Commencement

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now

Field \| Configuration	Placement \| Required/Conditional
Property Description	Locked text \| Required
Signature	Signer field \| Required with date
Notary Acknowledgement	Optional field \| Required if recording
Audit Trail	Enable \| Capture IP, timestamp