Are you planning to sell your property on your own? If the answer is yes, then you`ll need a basic for sale by owner (FSBO) contract. This contract outlines the terms and conditions of the sale and protects both the buyer and seller.
Here are the basics you need to know about a FSBO contract:
1. Price and Payment Terms
The contract should include the agreed-upon sale price of the property. It should also outline the payment terms, including the down payment amount, the due date for the remainder of the payment, and the method of payment.
2. Contingencies
A contingency is a condition that must be met before the sale can close. Common contingencies include the buyer obtaining financing, a satisfactory home inspection, or the sale of their current home. The contract should outline any contingencies and the timeline for them to be met.
3. Home Inspection
The buyer will likely want to conduct a home inspection to ensure the property is in good condition. The contract should specify who pays for the inspection and what happens if any issues are found.
4. Closing Date
The closing date is the date when the sale is final, and ownership of the property is transferred. The contract should include the agreed-upon closing date and any penalties for missing that date.
5. Disclosures
The seller is required to disclose any known defects or issues with the property. The contract should outline what disclosures are required and when they should be provided.
6. Legal Fees
The contract should specify who is responsible for paying legal fees, including the cost of preparing the contract and any other legal documents required for the sale.
7. Warranties
The seller may offer a warranty on the property to assure the buyer that it is in good condition. The contract should outline any warranties offered and the terms of those warranties.
In conclusion, a basic for sale by owner contract is a crucial document in the home selling process. It protects both the buyer and seller and outlines the terms and conditions of the sale. If you`re selling your property on your own, be sure to work with a real estate attorney to ensure your contract is legally binding and covers all necessary aspects of the transaction.