Michael Samuels provides legal services to FSBO and other real estate clients in Cincinnati and throughout Ohio.

Who draws up the For Sale By Owner (FSBO) contract?

On Behalf of | Jun 12, 2023 | FSBO

The For Sale By Owner (FSBO) method has gained popularity among homeowners who wish to sell their property without involving a real estate agent. FSBO allows homeowners to take control of the selling process and potentially save money on commission fees.

However, navigating the legal aspects of selling a property without professional guidance can be daunting. One important document that needs careful consideration is the FSBO contract. Read on to explore the role of the contract and who is responsible for drawing it up.

Why is the FSBO contract so important?

The FSBO contract is a legally binding agreement between the seller (homeowner) and the buyer. It outlines the terms and conditions of the sale, including the purchase price, contingencies and any additional agreements between the parties involved. The contract is important because it can protect both the buyer and the seller by helping ensure their rights and obligations are clearly defined throughout the transaction.

While FSBO sellers often handle the selling process independently, it is crucial to recognize that seeking professional assistance, particularly regarding the FSBO contract, can help ensure a smooth and secure transaction. This is because drawing up a comprehensive and legally sound real estate contract requires a deep understanding of real estate laws, local regulations and common practices.

Options for drawing up an FSBO contract

Contract templates can be helpful for FSBO sellers who prefer a do-it-yourself approach. Various online platforms offer pre-made templates that can be customized to suit the specific requirements of the transaction.

However, it is important to exercise caution when using these templates, as they may not be tailored to the laws and regulations of the specific jurisdiction. And this is where seeking professional assistance comes in; you’ll be more certain of your real estate contract’s legal validity and effectiveness when you choose this approach. Moreover, you won’t have to worry about omissions that could leave you vulnerable to a rip-off.

In For Sale By Owner (FSBO) transactions, the importance of a well-drafted contract cannot be overstated. While homeowners have the freedom to navigate the selling process independently, seeking professional assistance can provide invaluable guidance to facilitate a successful and secure transaction.