You finally accept an offer from a buyer for your for sale by owner home. The next step is to make the sale official. You do this through a for sale by owner sales contract form. This form can be purchased at a major office supply store, or you may contact a real estate lawyer to handle this for you. Either way you do this, the most important part is to understand the details of what you are signing. The document may look overwhelming, but if you separate it out piece by piece, it can easily be understood.
The document is there to provide a record of the transaction between the buyer and seller. It will include a description of the parcel of property that is being sold, the names of the buyer and seller, the amount of the sale, and the day the exchange of money and title will be completed. Understanding the different parts will make signing this contract easier and prevent any future problems.
The description of the property may appear confusing as it is written in legal terms. This is done to allow the government to know exactly which property you are selling. In the event that the street names would change in the future, the legal description would never change. They are simply describing the piece of property that you are selling.
The next major part of the for sale by owner sales contract covers the purchase price and how the buyer will be paying this money. Most often they will be taking a mortgage and the details about the mortgage will be included in the contract. It will also cover details concerning how much down payment was made and if there was any earnest money paid out. In the event that earnest money was paid, the name of the person holding this money will be listed.
Other information covered in the contract will include contingencies and inspections. Contingencies deal with the “what if” questions. These details will allow both the buyer and seller to understand these situations and refer back to the contract if necessary. Inspections could include termites, roof, and general house inspections. It will note that the seller is the party responsible for making any necessary repairs. If you don’t want to include this in the contract, you can agree to sell the house “as is”. In doing this you are removing any requirement for inspections and repairs.
The final part of the contract deals with the date that you will make the exchange of money and title. Generally it is about 30-45 days from the signing of the contract, but this can be left to your agreement with the buyer. You can agree to the date you wish, allowing any time for moving that you may need or other events that need to occur.
Signing the document is a very important step. In signing this sales contract, you are agreeing with all of the terms listed. If you have questions about any aspect of the contract, it would be a good idea to review it with your attorney. Never sign anything without a complete understanding of all the covered details. This is a contract and it requires you to abide by the agreement. If you understand the details and agree to the terms, the sales contract can be signed.
The contract is an important part of the whole sale process. Separating the contract into the different sections can help to understand the full document. In this way you will be informed and aware of all the terms, and you can be fully confident in the for sale by owners sales contract that you sign.
Download a free copy For Sale By Owner Sales Contract