The For Sale By Owner Buy Sell Agreement serves as a comprehensive legal framework for property transactions conducted directly between sellers and buyers in the United States. This document becomes necessary when property owners choose to sell their property without the representation of a real estate agent, potentially saving on commission fees while maintaining legal compliance. It includes essential elements such as property description, purchase price, contingencies, warranties, and closing terms, while ensuring adherence to applicable federal, state, and local real estate laws. The agreement provides both parties with legal protection and clear documentation of their transaction terms.
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1. Parties: Identification of buyer and seller with full legal names and addresses
2. Background: Context of the sale and basic property information
3. Definitions: Key terms used throughout the agreement
4. Property Description: Detailed legal description of the property being sold
5. Purchase Price: Amount and payment terms
6. Closing and Possession: Closing date and possession transfer details
7. Representations and Warranties: Seller's statements about property condition and title
8. Governing Law: Specifies that the agreement is governed by applicable state and federal laws
1. Financing Contingency: Used when buyer needs to secure mortgage financing - includes terms and conditions for obtaining financing
2. Inspection Contingency: Buyer's right to inspect property and timeline for completing inspections
3. Sale of Existing Home Contingency: Makes purchase contingent on buyer selling current home within specified timeframe
4. Property Maintenance: Seller's obligations to maintain property until closing
5. Risk of Loss: Provisions for damage to property prior to closing
1. Schedule A - Property Disclosure Statement: Detailed disclosure of property condition and known issues
2. Schedule B - Inventory of Included Items: List of fixtures and personal property included in sale
3. Schedule C - Title Documentation: Current title report or abstract
4. Schedule D - Lead Paint Disclosure: Required for properties built before 1978
5. Schedule E - Proof of Funds: Documentation showing buyer's ability to complete purchase
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