FSBO Contract – Documentation required when selling a home by owner

FSBO Contract – Documentation required when selling a home by owner

FSBO Contract – Documentation required when selling a home by owner

These days, more and more homeowners are taking the leap and selling their homes themselves, ditching the realtor. Is this a good idea? The answer to that is yes. However, there are quite a few documents related to this. In this article, we’ll go over some of the forms you’ll need when doing a FSBO sale of your home.

The first document you should have is the sales contract. This form will contain all the terms of the transaction between you and your buyer. This contract is a legal agreement, so don’t forget ANY of the important details. Of course, it will include the purchase price. However; for your protection and the protection of your buyer, it should also contain a contingency clause. A qualifying contingency could be if the buyer is unable to secure the financing OR if your home fails the inspection. If your buyer is buying your home “AS IS”, the details of this MUST also be included in the contract of sale.

The next form you should have is the Ownership Disclosure form. In this document, all defects that your home currently has MUST be listed. Many states and countries require this form to be used no matter what type of real estate transaction you choose. If you fail to disclose any of these issues with your home to your buyer, you can be held legally liable for damages and have to pay them a lot of money. Do yourself a favor: DON’T FORGET THE PROPERTY DISCLOSURE FORM!!

Another important document to have is an accommodation contract form. This form will set out all the terms of the moving periods for both you and your buyer. If the buyer intends to move in before the deal is secured, you will also need a pre-tenancy agreement. This is important because once you move out of your home, your homeowner’s insurance plan will most likely NOT cover you. So if the home is then damaged and/or you suffer losses in it, you’re just out of luck. So don’t forget to remember the employment and/or pre-occupancy form. You should consult with a great real estate attorney to make sure you don’t forget anything important related to this document.

If your home was built before 1978, you will also need “lead paint records” on a separate form. This form must fully disclose; with written notice to the purchaser, any trace of lead paint used in its construction or to improve its interior later. It is federal law that you MUST have this form. You are also required to provide your buyer with an EPA-approved lead paint information brochure. Additionally, the caveat form MUST be signed by all people who will be involved in the purchase of your home. Again, it would be wise to consult with your attorney to make sure you are doing everything in accordance with the law. Otherwise, there may be dire consequences for you later.

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