The owner-direct closing, step by step

A realistic map of a for-sale-by-owner closing in Tennessee — and exactly who is responsible for each step. This is general education, not legal advice; your attorney and title company are the professionals in the room.

Flags:SellerBuyerAttorneyTitle companyLender= who's responsible at that step

1. Agree on terms in writing
SellerBuyer
Price, closing timeline, what stays with the property, and who pays which costs. Keep it in your Deedio thread or email so there's a record.
2. Get a purchase & sale agreement drafted
Attorney
In Tennessee this is a real estate attorney's job (often a few hundred dollars flat). Drafting legal documents for someone else is attorney work — never sign a contract you haven't had reviewed.
3. Open escrow with a title company
SellerBuyerTitle company
Both sides agree on one title company — decide this early. They hold the deposit, run the title search, clear liens, and handle every dollar. The buyer usually proposes, but either side can.
4. Let the buyer do diligence
Buyer
Inspection and appraisal windows are normal even off-market. Agree on the windows up front in the contract; the buyer orders and pays for them unless you negotiate otherwise.
5. Line up the money
BuyerLenderSeller
A financed buyer's lender orders the appraisal and prepares to pay off the seller's existing mortgage at closing. Cash buyers show proof of funds. The seller requests a payoff statement from their own lender so the numbers are exact.
6. Close
Title companyAttorneySellerBuyer
The title company (or closing attorney) runs the closing: deed, mortgage payoff, transfer taxes, recording with the county register of deeds, and disbursement. You both sign; funds move; keys change hands.

If the deal is owner-financed, add these

An attorney drafts the note. The promissory note and deed of trust are the loan — they set the rate, term, balloon, and what happens on a missed payment. Both parties meet with a licensed attorney to get them drafted; this is never a downloaded template. Attorney
The title company still runs the closing. Escrow, title search, recording the deed of trust with the register of deeds — same rails as a bank-financed deal, so agree on the title company just as early. Title company
Handle any existing mortgage honestly. If the seller still owes on the property, most mortgages have a due-on-sale clause — transferring title without the lender's consent can let the lender call the full balance. The clean paths: pay it off at closing, or get the lender's written approval. Your attorney walks you through which applies. Seller Lender
Decide who services the loan. Payments, escrow for taxes and insurance, and payoff tracking — sellers often hire a loan-servicing company for a small monthly fee so records stay clean for both sides. Seller

Want help with just the paperwork — or the whole thing? The agent directory lists vetted local agents with flat advertised prices, from paperwork-only to full service. Deedio never takes a cut either way.

Wondering what you'd actually pocket? Run your numbers in the walk-away calculator.

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