The Property For Sale By Owner Contract is designed for situations where property owners choose to sell their real estate directly to buyers without professional real estate agent representation. This approach, common in the United States real estate market, can reduce transaction costs but requires careful attention to legal requirements. The contract must comply with federal regulations such as the Fair Housing Act and RESPA, as well as state-specific property laws. It typically includes essential elements such as property description, purchase price, closing conditions, contingencies, and required disclosures.
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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 ownership status
3. Definitions: Key terms used throughout the contract
4. Property Description: Detailed legal description of the property including address and boundaries
5. Purchase Price: Agreed sale price and payment terms
6. Closing Date: Specified date for completion of the transaction
7. Title Transfer: Terms of transferring property title
8. Seller's Representations: Warranties about property condition and ownership
1. Financing Contingency: Terms if purchase depends on buyer securing financing - include when buyer requires mortgage financing
2. Inspection Contingency: Terms for property inspection and potential outcomes - include when buyer wants right to inspect before purchase
3. Sale of Existing Home Contingency: Conditions if purchase depends on buyer selling current home - include when buyer needs to sell existing property
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 sale
3. Title Search Results: Documentation of property ownership and encumbrances
4. Lead-Based Paint Disclosure: Required for homes built before 1978
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