For Sale By Owner Contract

Last updated: June 9, 2025

Selling a home is a significant financial and legal undertaking and many homeowners choose to navigate this process without the assistance of a real estate agent through a method known as "For Sale By Owner" (FSBO). A critical component of this process is the For Sale By Owner contract, a legally binding document that outlines the terms and conditions of the sale between the seller and the buyer. This article provides an in-depth exploration of the FSBO contract, offering homeowners a detailed guide to understanding, drafting, and executing this essential document. From key components to legal considerations and common pitfalls, this guide aims to equip sellers with the knowledge needed to successfully complete a home sale on their own.

What is a For Sale By Owner Contract?

A For Sale By Owner contract, often referred to as a purchase agreement, purchase and sale agreement, purchase contract, or real estate sales contract, is a legal document that formalizes the agreement between a home seller and a buyer in an FSBO transaction. Unlike traditional real estate transactions, where a real estate agent or broker facilitates the creation of the contract, FSBO sellers take on this responsibility themselves. The contract serves as the foundation of the transaction, detailing the rights, obligations, and expectations of both parties.