02 Jan Who Draws Up a Contract in For Sale By Owner?
Who Draws Up a Contract in For Sale By Owner
Selling a home is a serious undertaking irrespective of how you choose to go about it.
If you opt to conduct the entire sale by yourself, the issue of contracts will come into play once you have a serious buyer in place.
Your agent will typically manage this process if you are using a realtor. However, who draws up a contract for sale by the owner?
Find out here.
A Sale Contact: Why it’s Necessary
Personal and business agreements can be made over a handshake. However, if a dispute arises, having a legal document can help protect both parties and offer quick dispute
A real estate contract is exceptionally detailed, and every effort should be made to clearly outline all eventualities and possibilities.
Again, it should follow the proper form for a legally binding contract and meet specific characteristics and elements. If a dispute does arise, the courts will only listen to disputes based on legally enforceable contracts.
Note that an agreement is not a contract. An agreement highlights a mutually agreeable understanding among parties. A contract, on the other hand, creates enforceable obligations among different parties.
The contract, in this case, is known as FSBO (For Sale by Owner). This is different from what you would use for a regular purchase when selling a house through a realtor.
Some of the things to capture in the contract are:
- Price of the house
- The agreed payment plan
- The down payment amount
- Items like furnishings to be paid on the house
- A legal description of the house to be sold
- The closing date
What Are Contingencies?
Often, home buyers will be seeking to use a mortgage or other financing to acquire a home.
It is therefore prudent to include contingencies to accommodate this. There are also contingencies for home inspections and contingencies.
Who Drafts the Contract?
Who Draws Up a Contract in For Sale By Owner? A real estate contract can be drafted by either the buyer or the seller.
In an FSBO, the seller can use a real estate attorney to draw up the contract. The buyer can similarly use their attorney or realtor.
The advantages of using an attorney are that you be sure they know what constitutes a legally binding document and that they will endeavor to protect your interests as a home seller.
The buyer’s realtor can handle the paperwork as a transactional agent. These are commonly known as dual agents.
Some states do not allow dual agency transactions, and this is something you need to find out beforehand, based on the jurisdiction of the property in question.
When you opt for a transactional agent, they become a non-partisan individual. As such, they do not represent the buyer nor the seller but act in both parties’ best interests.
Can I Have a No-Frills Sale?
If you are looking for a stress-free process without having to worry about all the documentation, Cash Buyers Network should be your go-to.
Fill in this form, and one of our agents will get back to you with a cash offer.