For Sale by Owner Purchase Contract template

Free for sale by owner contract template

Are you set on selling your home yourself? Then when you have a prospective buyer, you’ll need your own For Sale By Owner (FSBO) purchase contract.  A FSBO contract is used when buying or selling property without a real estate agent and provides the structure and legal protections for  both parties needed for a smooth real estate sale. 

Docusign has created this standard For Sale By Owner contract template that is editable and covers key terms such as purchase price, contingencies, closing date, and property details. This FSBO form can be downloaded, filled out, printed, and signed by both buyer and seller to create a binding agreement - all digitally. 

This For Sale By Owner real estate sample contract can be customized and comes at no cost to you – all you need is a free Docusign account. So get started with Docusign today and save on those real estate commissions.

What is a For Sale By Owner (FSBO) purchase contract?

An FSBO purchase contract is a legally-enforceable document that outlines the terms and conditions of a real estate transaction when the seller is not represented by a real estate agent. It serves the same purpose as a traditional purchase agreement but is typically drafted and negotiated directly between the buyer and seller.

What is included in a FSBO purchase contract?

To ensure that a FSBO purchase contract is valid, it must include:

• Identification of parties: Full legal names and contact information of the seller(s) and buyer(s).

• Property description: The complete legal description and physical address of the property being sold.

• Purchase price and terms: The agreed-upon purchase price, how the purchase price will be paid (e.g., cash, financing, earnest money deposit), earnest money amount (if any), and how it will be handled.

• Financing terms: Whether the sale is contingent upon the buyer obtaining financing, and the terms of such financing.

• Contingencies: Inspection contingencies, appraisal contingencies, or any other conditions that must be met for the sale to proceed.

• Closing and possession: The closing date and location, when possession of the property will transfer to the buyer.

• Title and deed: The type of deed that will be delivered (e.g., warranty deed, quitclaim deed), assurance that the seller will provide clear title.

• Prorations and closing costs: How taxes, utilities, and other expenses will be prorated, allocation of closing costs between buyer and seller.

• Disclosures: Any legally required disclosures (e.g., lead-based paint, property condition, known defects).

• Default and remedies: What happens if either party defaults on the agreement.

• Signatures: Signatures of all parties involved, dated.

Additional (optional) clauses

These clauses may be included to clarify expectations and protect both parties:

• Fixtures and personal property: Items included or excluded from the sale.

• Inspections: Buyer’s right to inspect and the process for addressing inspection issues.

• Title and deed: Type of deed provided and assurance of clear title.

• Taxes, prorations, and closing costs: How costs and expenses are allocated.

• Default: Remedies if either party breaches the agreement.

• Entire agreement and amendments: Statement that the written agreement is the full contract.

• Governing law: Which state’s laws apply.

What other paperwork do you need to sell a house by owner?

To sell a house by owner, you'll need several key documents in addition to the FSBO purchase contract. These typically include:

• Property deed: Proves you are the legal owner of the property.

• Property survey: Shows the boundaries and any improvements on the land.

• Title insurance policy: Provides protection against defects in the title.

• Property disclosure statement: Outlines any known defects or issues with the property (often legally required).

• Lead-based paint disclosure (if applicable): Required for homes built before 1978.

• Homeowners Association (HOA) Documents (if applicable): Includes bylaws, covenants, conditions, and restrictions (CC&Rs), and financial statements.

• Loan payoff statement: Details the amount needed to pay off your current mortgage.

• Utility bills: Proof of utility payments.

• Tax records: Property tax statements.

• Appraisal report: An independent valuation of the property.

• Inspection reports (if any): Any previous inspection results.

• Receipts for major repairs or improvements: Documentation of work done on the property.

It's advisable to have a local real estate attorney review all documentation to ensure compliance with state and local laws.