Sellers are typically responsible for drawing up a for sale by owner (FSBO) real estate contract.
However, it's not as simple as filling out a real estate contract template. Each state has its own laws and requirements regarding contracts. For instance, 10 states require you to hire an attorney to write or review the contract. Forty-one states require you to attach extensive disclosures about your property to your contract.
Selling without a realtor is undoubtedly a complex process that often trips people up. About 36% of non-traditional sellers say they made legal mistakes during their transaction, and 40% said they didn't even understand their contract.[1]
In a typical sale where the seller hires a real estate agent, the agent can help navigate local laws and contract details. If you want an agent's help with your contract but also want to save money, consider working with a top-ranked, low commission realtor. Sometimes, agents can save you around the same amount of money as selling without a realtor.
If you're committed to selling your house without a realtor, your first step should be to research for sale by owner real estate contract rules, regulations, and templates for your state.
🚨 DISCLAIMER: This article is being provided for informational purposes only and isn't intended to convey legal advice. Clever Real Estate recommends you consult a real estate agent or real estate attorney to navigate the contract for selling a home without a realtor.
For sale by owner real estate contract template examples
Pick from the list below to find details about for sale by owner real estate contracts in your state, including an example of a real estate contract template.
Open the box above and click your state to find an example of a for sale by owner real estate contract for your state.
No matter which state you're selling in, we recommend you check with a local real estate attorney, real estate transaction coordinator, or real estate agent to make sure any template you consider using for your FSBO sale is current and complies with state and local laws.
"As tempting as it may be, avoid using generic templates found online since they usually do not take into consideration state-specific laws and peculiar circumstances surrounding your property," says Alexei Morgado, a licensed Florida real estate agent and founder of Lexawise. "An attorney will make sure that the contract has all the necessary provisions."
Many real estate purchase agreements and sales contracts produced by realtor associations, state real estate commissions, and state bar associations include similar recommendations to consult an attorney to ensure the contract protects your legal rights.
Key elements of a for sale by owner real estate contract
The contract must follow state and local laws regarding real estate contracts to be enforceable. It should also comply with the federal Fair Housing Act.
We recommend consulting with a real estate attorney, transaction coordinator, or real estate agent to make sure your contract is enforceable and not omitting critical information.
Generally, a for sale by owner real estate contract includes, but isn't limited to, the following sections.
The contract should include the full legal names of the buyer and seller involved in the sale.
The contract should include location details, such as the house number, street name, city, county, and state. It should also include details about the size and boundaries of the property.
The contract should include the following:
- Purchase price. The agreed-upon cost of the house.
- Financing information. The buyer's financing terms, such as whether they'll pay cash or what bank is financing their purchase and on what terms. Certain kinds of loans may need supplemental paperwork.
- Earnest money. The amount of earnest money deposit agreed upon by you and the buyer.
- Closing costs. The agreement of who covers the costs of closing the deal.
- Other financial concerns. Prorated costs about taxes, HOA fees, or utilities, for instance.
Most states require you to attach extensive disclosures to your contract. You're required to disclose the condition of your house, from its foundation to its roof and almost everything in between.
You'll also need to attach federally required disclosures and any local disclosure laws.
"Complete disclosure of the property's condition is essential to avoid future disputes," says Morgado.
Click your state below for details about its disclosure requirements.
🚨 Alabama, Georgia, Massachusetts, Montana, New Jersey, North Dakota, Virginia, West Virginia, and Wyoming are buyer-beware states. They don't require you to fill out and attach a state-produced disclosure form to the real estate contract.
But if you're selling in a buyer-beware state, that doesn't mean you're exempt from making all disclosures. For instance, you'll need to comply with state laws that prohibit fraud, federal disclosure laws, and any local laws.
The contract usually includes contingencies, clauses that allow the buyer or seller to back out of a deal without penalty if certain conditions aren't met.
The following contingencies are most common in a for sale by owner real estate contract:
- Inspection contingency. Allows the buyer to walk away if the home inspection uncovers serious issues with the property.
- Financing contingency. Allows the buyer to walk away from the deal if their financing falls through.
- Appraisal contingency. Allows the buyer to walk away if the home appraises for less than the agreed-upon sale price. Lenders usually require an appraisal to make sure the home value equals the amount of money they're lending the buyer.
- Home sale contingency. Allows the buyer to walk away if they can't sell their own home.
The contract should include a section describing what happens if the buyer or seller doesn't meet the obligations laid out elsewhere in the contract.
The contract should include details about the closing of the sale, including the date, place, and a timeline for meeting provisions in the contract.
The contract should include a section for the buyer and seller to sign.
Who draws up a for sale by owner real estate contract?
Typically, the seller draws up the for sale by owner real estate contract.
Sellers without a realtor typically rely on real estate contract templates produced by a state's real estate commission or realtor organization.
If you want to use a real estate contract template for your sale, check with a real estate attorney, real estate transaction coordinator, or real estate agent to make sure it's current and complies with state and local laws.
Many real estate purchase agreements and sales contracts produced by realtor associations, state real estate commissions, and state bar associations include similar recommendations to consult an attorney to ensure the contract protects your legal rights.
Where to get assistance with drawing up a real estate contract
We recommend consulting a legal or real estate professional to draw up your for sale by owner real estate contract.
Around 10% of sellers without a realtor said understanding and performing the paperwork was the most difficult part of selling on their own.[2]
🧠 Expert insight: Patrick MacQueen, founder of Medalist Legal, an Arizona-based real estate law firm, says he's seen sellers without a realtor do everything from making basic errors in inserting the correct parties and addresses to failing to make disclosures.
"We’ve also seen sellers that did not know how to enforce their remedies and [lost] out on the opportunity to keep the buyer’s earnest money," MacQueen says.
Getting assistance from one of the resources below can help you meet the challenge.
Low commission realtors
Low commission realtors are full-service real estate agents who work for a reduced listing commission.
Sellers who work without an agent often choose that route to save money on realtor fees. But selling with a low commission agent can save you as much or more money than selling without an agent, and you'll get professional help navigating the sales contract.
For sale by owner sellers sold their homes for around 13% less than sellers who used an agent.[3]
💰 Save on realtor fees and potentially sell your house for more by using a full-service realtor. Fill out this form to get matched with local agents who charge a 1.5% listing fee.
Flat fee MLS company
Hire one of the flat fee MLS companies that offers plans with paperwork support.
Flat fee MLS plans typically cost between $75–$1,500. Plans with paperwork support are usually at the higher end of the cost scale. Lower-cost plans sometimes offer paperwork support at an additional cost.
Transaction coordinator
If you choose to sell without a realtor, a transaction coordinator can help you draw up the contract and support other parts of the sales process.
⚡ Clever Real Estate can connect you with a transaction coordinator to manage your paperwork for a flat $3,000 fee.
Real estate attorney
Hire an attorney to help with the contract and other parts of the process. Attorney rates vary by state, but our research found the range is around $152–$343 per hour.
FAQ
A for sale by owner real estate contract is a legally binding contract governing the real estate transaction between a home seller and buyer. It's sometimes called a purchase agreement.
It's best to use a real estate contract template from your state's real estate commission or realtor association.
Fill in the blanks of the template with the terms you've hashed out with the buyer.
Because the contract is a complex, legally binding document, we recommend consulting with a real estate attorney, transaction coordinator, or real estate agent to write a real estate contract.
Why trust us
Data sources
Our Research Team reviews federal and state contract requirements once a year. We use trusted sources like federal and state governments websites, state and local realtor associations, and real estate professionals in our articles.
About Clever Real Estate
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Our team of industry-leading researchers is committed to making the home selling process more accessible by educating sellers through guides like this one. We've spent thousands of hours analyzing publicly available data, surveying consumers, and interviewing industry experts. The New York Times, Business Insider, Inman, Housing Wire, and many more publications have featured our research.
