The For Sale By Owner Sales Contract 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 contract must comply with both federal and state-specific real estate laws, including disclosure requirements, fair housing regulations, and property transfer rules. It typically includes detailed property descriptions, price and payment terms, contingencies, and closing requirements. This document is particularly important in the United States where real estate transactions are heavily regulated and require proper documentation to ensure legal transfer of property.
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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
5. Purchase Price: Amount and payment terms
6. Closing Date: Specified date for completion of the transaction
7. Title Transfer: Terms of transferring property title
8. Representations and Warranties: Seller's statements about property condition and ownership
1. Financing Contingency: Terms and conditions that apply if the purchase depends on the buyer obtaining financing
2. Inspection Contingency: Terms and conditions related to the property inspection period and buyer's rights
3. Sale of Existing Home Contingency: Conditions that apply if purchase depends on buyer selling their current home
1. Property Disclosure Statement: Detailed disclosure of property condition and known issues
2. Inventory of Included Items: List of fixtures and personal property included in the sale
3. Lead Paint Disclosure: Required disclosure for properties built before 1978
4. Survey or Plot Plan: Documentation of property boundaries and improvements
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