What documents do I need to sell my house without an agent?
To sell your house without an agent, you will need the following documents:
- Purchase And Sale Agreement
- Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards (PDF Form)
- Residential Property Disclosure And Disclaimer Statement (Example Form for Maryland)
Purchase And Sale Agreement
The most important document is the Purchase And Sale Agreement. Commonly referred to as the "PSA" and "Contract Of Sale", this form is the legally binding agreement signed by both the Seller and the Buyer, collectively the Parties that details the terms upon which real property will be conveyed from the Buyer to the Seller.
Components of the Purchase And Sale Agreement:
- Purchase Price: the amount the Buyer will pay to the Seller
- Earnest Money Deposit: the amount of money the Buyer will place in an escrow account as a good faith gesture once the Seller accepts the agreement. If the Buyer fails to perform their responsibilities in the agreement, the Seller will receive the Earnest Money ("EMD") as damages. This amount is typically 1% - 2.5% of the purchase price of the home.
- Acceptable financing: the types of financing the Buyer can use (i.e. cash, conventional financing, seller financing, FHA 203k loan)
- Close by date: the date by or before which settlement will occur
- Inspection window: for how long will the Buyer have the right to inspect the property?
- Contingencies: what would allow the Buyer or Seller to cancel the agreement? (i.e. inspection results, financing falling through)
- Closing costs: how will transfer taxes and recordation fees be allocated to the Buyer and Seller?
In traditional real estate transactions, this document is signed by the Buyer and then provided tp the Seller or Seller's Agent by the Buyer or Buyer's Agent as their formal offer. If the Seller accepts the terms in the agreement, they sign. Once the agreement is signed by the seller ("acceptance"), the contract is considered executed and the responsibilities detailed in the agreement for each Party must be met.