Sellers are typically responsible for drawing up the for sale by owner (FSBO) real estate contract in Kentucky.
As a seller without a realtor in Kentucky, you can use a state- or realtor-approved real estate contract template, but you must have an attorney review or write the entire contract.
Having an attorney to help oversee a sale provides a protective measure for non-traditional home sellers, who are prone to making mistakes during the sales process.
About 36% of non-traditional sellers made legal mistakes, and 40% said they didn't understand their contract.[1]
Because selling without a realtor is a complex process, consider working with a discount real estate broker in Kentucky. A real estate agent can help you navigate parts of the process where attorneys aren't required. Sometimes, agents can even save you around the same amount of money as selling without a realtor.Continue reading for more details about what you'll need in a for sale by owner real estate contract when you sell your house without a realtor in Kentucky.
🚨 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 in Kentucky.
Kentucky for sale by owner real estate contract template example
Here's an example of a Kentucky real estate contract template.
If you want to use this 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 Kentucky law and any 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.
Key elements of a Kentucky for sale by owner real estate contract
The contract must follow Kentucky state law regarding real estate contracts to be enforceable. It should also comply with the federal Fair Housing Act.
Consult with a real estate attorney, transaction coordinator, or real estate agent to make sure your contract is enforceable and complies with local laws.
Generally, a for sale by owner real estate contract includes but isn't limited to the following elements.
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.
Kentucky requires sellers to fill out a disclosure form and attach it to their real estate 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.
» MORE: Real Estate Disclosure Requirements for Selling a House in Kentucky
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 in Kentucky:
- 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 in Kentucky?
Typically, the seller draws up the for sale by owner real estate contract in Kentucky.
Sellers without a realtor can consider using a real estate contract template produced by Kentucky's real estate commission, the Kentucky Realtors, or a third party like eForms.
Where to get assistance with drawing up a real estate contract in Kentucky
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 without a real estate agent.[2]
Getting assistance from one of the resources below can help you meet the challenge.
Low commission realtor
Low commission realtors in Kentucky 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.
Sellers without a realtor 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 in Kentucky that offers plans with paperwork support.
Flat fee MLS plans in Kentucky typically cost between $249–$1,290. Plans with paperwork support are usually at the higher end of the cost scale. Lower-cost plans sometimes offer paperwork support at an additional fee.
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.
Attorneys in Kentucky typically cost between $150–$150. You can find one via the Kentucky Bar Association.
FAQ
It's best to use a real estate contract template from Kentucky's real estate commission or the Kentucky Realtors.
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 Kentucky 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.
