If you`re buying or selling a home without a real estate agent, you`ll need a “for sale by owner purchase agreement” to legally seal the deal. The purchase agreement is a legally binding contract that outlines the terms and conditions of the sale. It`s essential to draft the agreement carefully to avoid misunderstandings and legal disputes down the road.
Here are some key elements to include in your for sale by owner purchase agreement:
1. Property description: The agreement should include a detailed description of the property, including the address, lot size, and any special features.
2. Purchase price: The purchase price must be specified in the agreement, along with any earnest money or down payment requirements.
3. Contingencies: Contingencies are conditions that must be met for the sale to go through. Common contingencies include home inspections, appraisals, and financing approval.
4. Closing date: The agreement should set a firm closing date, which is when the buyer takes possession of the property and the seller receives payment.
5. Property condition: Both parties should agree on the condition of the property at the time of sale. The agreement may include an “as-is” clause, stating that the buyer accepts the property in its current condition.
6. Title and deed: The parties should agree on how the property title and deed will be transferred. This may involve hiring a title company or attorney to handle the paperwork.
7. Dispute resolution: The agreement should include provisions for resolving any disputes that may arise during the sale process.
It`s essential to have the for sale by owner purchase agreement reviewed by an attorney to ensure that it complies with state and local laws. Additionally, both parties should carefully review the agreement before signing to ensure that they understand and agree to its terms.
By following these guidelines, you can create a solid for sale by owner purchase agreement that protects both the buyer and the seller and ensures a smooth home sale.