The For Sale By Owner Purchase Agreement is utilized when property owners choose to sell their real estate directly to buyers without professional real estate representation. This approach can reduce transaction costs but requires careful attention to legal requirements. The document must incorporate all necessary elements for a valid real estate contract under U.S. federal and state laws, including property description, purchase price, contingencies, and required disclosures. It serves as the primary legally binding agreement governing the entire transaction from offer acceptance through closing.
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1. Parties: Identifies the seller and buyer with full legal names and addresses
2. Background: Brief context of the sale and property identification
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 including earnest money details
6. Closing: Closing date, location, and requirements
7. Title Transfer: Terms of transferring property title
8. Representations and Warranties: Seller's statements about property condition and ownership
9. Default Provisions: Consequences of breach by either party
1. Financing Contingency: Terms and conditions if purchase depends on buyer obtaining financing
2. Inspection Contingency: Terms and conditions for property inspection rights and timeline
3. HOA Provisions: Details about homeowners association rules, fees, and requirements
4. Lead Paint Disclosure: Required lead paint notifications and acknowledgments for properties built before 1978
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 Documents: Current title report and related documents
4. Schedule D - Property Survey: Recent survey of property boundaries and measurements
5. Schedule E - HOA Documents: HOA rules, regulations, and financial statements if applicable
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