| Most FSBO home sellers are not used to reading legal | | | | you are required by law to disclose any known |
| documents, let alone filling one out. Since the offer | | | | defects about the property. |
| and acceptance agreement and the ultimate purchase | | | | - Lead paint disclosure. Houses built before 1978 are |
| contract determine all of your rights and | | | | required to include a lead-based paint disclosure form. |
| responsibilities, you will want to be knowledgeable | | | | - Contingencies. These items make any offer and |
| about every provision. | | | | acceptance left hanging until the contingency is |
| In this article we go through the main provisions of a | | | | resolved. As a seller, you will want to minimize the |
| contract for sale of your home: | | | | number of contingencies the buyer receives. That's |
| Names of buyer and seller. Make sure your | | | | because you don't have a real contract while |
| information is accurate, complete, and spelled | | | | contingencies are left open. This puts you at risk |
| correctly. | | | | because the buyer can still back out of the deal. The |
| - Legal description of the property. Make sure the | | | | biggest examples are the buyer having to sell a |
| description contains all necessary information and the | | | | house and obtain a mortgage. There can also be |
| information is correct. | | | | contingencies on home inspections, attorney review, |
| - Down payment or deposit information. This is called | | | | and completion of agreed-to repairs. |
| "earnest money" and is paid to show the buyer is | | | | - Inspections. Property inspections are almost always |
| making a serious offer. It may be forfeited if the | | | | asked for by buyers. It could help to do this very |
| buyer doesn't go through. | | | | early in the process, to show buyers. Sellers almost |
| - Purchase price. Both parties will negotiate the | | | | always pay cost of repairs. |
| amount until the final offer is accepted. Until then, | | | | - Home warranties. Information about any home |
| you have only offers and counter-offers. | | | | warranties purchased should be included. |
| - Closing date. This is only a proposed date for when | | | | - Title insurance. Title insurance information should |
| the deed will transfer to the buyer. | | | | also be included in the contract. |
| - Move in date. This is the date the buyer may move | | | | - Commission information. The contract will show |
| in to the property and the seller must vacate the | | | | whether someone will pay an agent's commission and |
| premises. | | | | how much it will be. FSBO sellers often agree to pay |
| - Personal property included in the sale. This is the list | | | | a 3% commission to the buyer's agent. |
| of items that are included with the sale even though | | | | The most important thing for a FSBO seller is to |
| not considered "real estate." Appliances are the | | | | understand and agree with all the above terms. For |
| biggest example. | | | | example, is the move in date good for your |
| - Contract Expiration Date. How long the contract is | | | | schedule? Is the earnest money deposit enough to |
| valid. This is the date by which all contingencies must | | | | make you feel comfortable? Do you really want to |
| be resolved. | | | | have your home sale dependent on all those |
| - Disclosure of defects. Your lawyer will tell you if | | | | contingencies that may never happen? |