Once an offer on a property is made by a Buyer and accepted by the Seller, the next step in the For Sale By Owner home sale document process is to create a Real Estate Purchase Agreement.
So exactly what language should be included in that most critical of real estate legal documents? And what’s the best way to get one in an FSBO scenario?
The purpose of a Real Estate Purchase Agreement is to outline all of the details of a home sale transaction. This gives both parties a clear legal document from which to work.
This document will list the location of the property covered under the agreement, the purchase price, the expectations for financing and a deadline for obtaining that financing, the expected closing date, a list of any personal property items included with the sale, and other basic agreement functions.
A Real Estate Purchase Agreement also states what types of inspections, insurance and closing services are to be done prior to the final execution of the agreement, and which party is to pay for each of these items (or if the cost for those services is to be split equally between Buyer and Seller).
Writing a Real Estate Purchase Agreement
It is critical that the Real Estate Purchase Agreement be written as clearly and concisely as possible. If the document is going to be drafted directly by the Buyer or Seller and neither person is an attorney, at the very least the document template should be attorney-drafted. That means finding a self-help forms provider who can clearly demonstrate that their FSBO real estate forms are 100% up-to-date. Better still, it may be wise to hire a real estate document preparation service with a solid reputation to create customized forms specific to your transaction.
Remember, an FSBO real estate purchase agreement must follow the laws of the state in which the property resides. That means the language within the documents must meet the requirements set forth by that state.
Filing a Real Estate Purchase Agreement
Further, the filing requirements for FSBO home sale documents are often county-specific. Do-it-yourself documents usually do not talk about local filing requirements, or provide instructions for completing a deed document filing. Self-help document instructions usually contain state transaction details, as it’s unrealistic to expect local-level instructions from a $20 – $40 package.
To file documents created from a legal forms software package, the Buyer or Seller usually has to contact the local county recorder to ask questions about the filing. A good county recorder will provide filers with a step-by-step checklist!
On the other hand, a well-managed real estate legal document preparation company will provide that filing checklist to the Buyer and Seller with the rest of their documents! Such a checklist will detail the required documents, the office location and time/days they are open, the filing fees, and any other information that helps the party get their filing completed.
Document preparation for a Real Estate Purchase Agreement costs about $100 more than buying do-it-yourself forms, but the trade-off is peace of mind that the documents will be complete and formatted correctly for the state, and the ‘service touches’ like the filing information will be included.
Four Ways to Get a Well-Written Real Estate Purchase Agreement
There are a good number of trustworthy legal forms software providers for do-it-yourself Real Estate Purchase Agreements. Standard Legal, Find Legal Forms, and U.S. Legal Forms all have a complete library of real estate legal documents. Review each company using the links above to choose the best provider for you.
Sometimes, finished real estate documents that are ready-for-signature can be found from a local document preparation company. Check any search engine for ‘real estate purchase agreement document preparation’ and review the options that come up for your area.
But if you prefer to work with a nationally-recognized company instead, the most well-known at providing ‘real estate doc prep’ for every state in the USA is RealtyPact.
A Real Estate Purchase Agreement is one of the key legal documents to completing a For Sale by Owner home sale. Make sure you give full attention to finding the document option that works for you!