The Contract For Buying A House From Owner (FSBO) is designed for situations where property owners choose to sell their homes directly to buyers without real estate agent representation. This approach has become increasingly common in the United States real estate market as sellers seek to avoid agent commissions and maintain more direct control over the sales process. The contract must comply with both federal regulations and state-specific requirements, including mandatory disclosures about property condition, environmental hazards, and title status. It provides a comprehensive framework for the transaction, protecting both parties' interests while ensuring all legal requirements are met. This document is particularly relevant in today's digital age where more sellers are comfortable handling their own property sales, though it's often recommended to have legal counsel review the agreement before signing.
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1. Parties: Identifies buyer and seller with full legal names and addresses
2. Background: States the intent of seller to sell and buyer to purchase the specified property
3. Definitions: Defines key terms used throughout the agreement
4. Property Description: Detailed legal description of the property including address and parcel number
5. Purchase Price: States the agreed purchase price and payment terms
6. Earnest Money: Details of deposit amount, holder, and terms
7. Closing and Possession: Specifies closing date, location, and possession terms
8. Title and Deed: Requirements for clear title and deed transfer
9. Representations and Warranties: Standard seller warranties about property condition and ownership
1. Financing Contingency: Used when buyer needs to secure mortgage financing - included when purchase depends on buyer obtaining financing
2. Inspection Contingency: Buyer's right to inspect and terminate based on findings - included when buyer wants professional inspection before commitment
3. Sale Contingency: Makes purchase conditional on buyer selling existing home - included when buyer needs to sell current property first
4. HOA Provisions: Details about homeowners association rules and fees - included when property is part of an HOA
1. Property Disclosure Statement: Seller's disclosure of known property conditions and defects
2. Title Report: Current title report showing ownership and encumbrances
3. Property Survey: Recent survey showing property boundaries and improvements
4. Inventory of Included Items: List of fixtures and personal property included in sale
5. Lead-Based Paint Disclosure: Required for homes built before 1978
6. Environmental Reports: Any environmental assessments or testing results
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