The Sale By Owner Contract Form is essential for individuals conducting private property sales in the United States without professional real estate representation. This document serves as the primary legal agreement between buyer and seller, ensuring all aspects of the transaction are properly documented and legally binding. It includes critical elements such as property description, purchase price, payment terms, contingencies, and required disclosures. The form must comply with both federal regulations and state-specific real estate laws, making it a crucial tool for protecting both parties' interests in FSBO transactions.
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1. Parties: Identification of seller and buyer with complete legal names and addresses
2. Background: Brief context of the sale and property identification
3. Definitions: Key terms used throughout the contract
4. Property Description: Detailed legal description of the property being sold, including address, lot number, and legal boundaries
5. Purchase Price: Specified amount and payment terms, including deposit and balance due at closing
6. Closing Details: Date, location, and requirements for closing, including document delivery and fund transfer
7. Representations and Warranties: Seller's statements about property condition, ownership, and absence of liens or encumbrances
8. Default Provisions: Consequences and remedies in case of contract breach by either party
1. Financing Contingency: Terms and conditions related to buyer's mortgage financing requirements and deadlines
2. Inspection Contingency: Terms for property inspection rights, timelines, and procedures for addressing issues
3. Sale of Existing Home Contingency: Conditions and timelines related to buyer's need to sell their current home
4. Personal Property: Specific items of personal property included or excluded from the sale
1. Schedule A - Property Disclosure Statement: Detailed disclosure of property condition, known defects, and material facts
2. Schedule B - Inventory of Included Items: Comprehensive list of fixtures and personal property included in the sale
3. Schedule C - Lead Paint Disclosure: Mandatory disclosure for properties built before 1978 regarding lead-based paint
4. Schedule D - Survey or Plot Plan: Property boundaries, improvements, and easements documentation
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