The For Sale By Owner Real Estate Contract serves as a comprehensive legal framework for property transactions where owners choose to sell directly to buyers without professional real estate representation. This approach can reduce transaction costs but requires careful attention to legal requirements and proper documentation. The contract must address all essential elements of the sale, including property description, price, payment terms, contingencies, and closing requirements, while ensuring compliance with applicable federal and state laws. It's particularly important in the United States where real estate transactions are heavily regulated at both federal and state levels.
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1. Parties: Identification of buyer and seller 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 purchase amount, payment terms, and method of payment
6. Closing Date: Specified date for completion of transaction and transfer of ownership
7. Title and Deed: Terms regarding transfer of ownership and title insurance requirements
8. Property Condition: Statement of property condition and any known defects
9. Representations and Warranties: Statements of fact and promises made by both parties regarding the property and transaction
10. Default and Remedies: Consequences and available remedies if either party fails to perform
1. Financing Contingency: Terms and conditions if purchase depends on buyer obtaining mortgage financing
2. Inspection Contingency: Terms regarding property inspection rights and timeframes for completion
3. Sale of Existing Home Contingency: Terms if purchase depends on buyer selling their current home
4. Homeowners Association: Terms related to HOA membership, fees, and regulations if applicable
5. Rental Property Terms: Terms regarding existing tenants or rental agreements if property is currently leased
1. Schedule A - Property Disclosure Statement: Detailed disclosure of property condition, known defects, and material facts
2. Schedule B - Inventory of Fixtures and Fittings: Comprehensive list of items included and excluded from the sale
3. Schedule C - Lead-Based Paint Disclosure: Mandatory disclosure and acknowledgment for properties built before 1978
4. Schedule D - Survey Documentation: Property survey showing boundaries, easements, and encroachments
5. Schedule E - Title Exceptions: List of any liens, encumbrances, or restrictions on the property title
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