Easy Questions  
Free Legal Documents

Essential Elements in a For Sale by Owner (FSBO) Contract in Alsey, IL

Essential Elements in a For Sale by Owner (FSBO) Contract in Alsey, IL


Owning a home is a keystone of wealth… both financial affluence and emotional security.
 
- Suze Orman


For Sale By Owner (FSBO) refers to putting one's house on the market for sale by the homeowner without assistance from a real estate agent. The most common reason for a FSBO transaction is to avoid paying a large real estate commission when selling the property. By not using a real estate agent, the seller assumes all the responsibilities of completing the transaction.

The FSBO contract contains the terms and detailed condition of the sale. It also describes the obligation of each of the parties. You can check out a free preview of a FSBO contract at 1-2-Law.

Elements of a FBSO Contract:

1. Name the parties in the contract. Names of the parties in the contract should be stated and designate them either as a buyer or seller.

2. Name the contract. A short name for the contract should be provided in order to have a reference for the document.

3. Describe the real estate. Provide the common address and the full legal description of the property. Full description is essential because it provides a way of describing the property in a permanent manner. You can get hold of a full description from the county recorder's office where the property is located.


4. Describe the payment terms. Describing the payment in one sentence can be a simple way to understand the document. An FBSO contract however, is usually more complex than just exchanging cash for an executed deed. Make sure to include the following in the payment terms:

• Full purchase price. Refers to the full amount of the accepted offer without subtracting the deposit or any earnest money paid.

• Earnest money and other deposit. This is the money paid to the seller to let him/her know that the buyer is serious about buying the property. This is done when the seller accepts the offer of the buyer. This deposit on the purchase is done right away. This amount and date of delivery should be included in the payment terms.

• Trust. The money paid by the buyer will be held in trust until the sale is completed. It is now the owned by both the buyer and the seller. The trust company should also be included in the contract. If the sale did not push through, the money may be returned to the buyer depending on the circumstances of the failed transaction.

• Property taxes. When the purchase of property does not coincide with the tax schedule, the taxes will be prorated between the buyer and seller.


5. Describe any easements or restrictions on the property. Easements may refer to the use of a portion of another person's property. Easement is one of the rights in a portion of a property. Restrictions may be based on the homeowners' association requirements or the city or municipality or utility company requirements to dig or do work on your property for sewers, cable lines, electricity, gas lines, etc.

6. Describe any property that will be included in the sale. This would normally include all fixtures on the house. In order to avoid confusion, including the complete description of the fixtures as well as any other property to be conveyed with the house should be included.

7. Describe any contingencies. These are events or conditions which have to occur before the completion of the purchase. These may include:

• Passing a home inspection

• Obtaining financing

• The seller being able to sell their current home


8. Provide all required disclosures. Disclosure of certain information to the potential buyer is required by the federal and state law. Before you disclose, check on your states statutes, on what disclosures to provide. The common disclosures to provide may be:

• Defects on the property that may affect its property value and desirability

• Lead-based paints hazards

9. Determine if your state has requirements any specific language in home sale contracts.Check on the requirement of your state on specific language clause or information that should be included in the sales contract.

10. Describe what will happen if any party defaults on the contract. This is a way to protect the seller in case in case the buyer defaults on the contract. The court can be made to intervene or forfeiture of the earnest money paid may compensate the seller if the buyer backs out.

11. Provide closing information. This refers to the final meeting where the deal is closed. The payment is made by the buyer to the seller and the seller in return will deliver the executed deed to the buyer. FBSO contracts usually end within 60 days of signing the contract.

12. Create a signature block. You should provide plenty of space for the part of the contract where signatures are signed. Provide the parties printed names and also provide space for the notary public to notarize the signatures.

 
Personalize & Print a Free IL Last Will Download this Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
 
Personalize & Print a Free IL Living Will Download this Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Related Legal Services near Alsey, IL
Hanson & Peters
1000 Hart Rd Fl 300
Barrington, IL 60010
(847) 277-9988
General Practice Attorneys, Legal Service Plans, Attorneys
Susan Poplar Law Office
330 E Main St Ste 207
Barrington, IL 60010
(847) 381-9588
Attorneys, General Practice Attorneys, Real Estate Attorneys, Estate Planning Attorneys
Covey Bankruptcy Law Firm, P.C.
232 S Batavia Ave Uppr
Batavia, IL 60510
(630) 879-9559
Foreclosure Services,  Business Bankruptcy Law Attorneys,  Bankruptcy Services,  Bankruptcy Law Atto
Bernstein Deberah L
330 E Main St
Barrington, IL 60010
(847) 304-9533
General Practice Attorneys, Attorneys, Legal Service Plans
Lovig Elizabeth
428 S Batavia Ave
Batavia, IL 60510
(630) 326-9500
General Practice Attorneys, Attorneys, Legal Service Plans
Terrence Michael Johnson Law
66 Flint Dr
Lake Barrington, IL 60010
(847) 381-9370
General Practice Attorneys, Attorneys, Legal Service Plans
Kelleher & Buckley
102 S Wynstone Park Dr # 100
North Barrington, IL 60010
(847) 382-9130
Estate Planning Attorneys,  Attorneys,  Wills, Trusts & Estate Planning Attorneys,  Business Law At
Robins Martin B
1000 Hart Rd Ste 220
Barrington, IL 60010
(847) 229-8710
General Practice Attorneys, Attorneys, Legal Service Plans
Joseph Lucas & Assoc
224 W Main St
Barrington, IL 60010
(847) 381-8700
Estate Planning Attorneys, Attorneys, Family Law Attorneys, Legal Service Plans, Tax Attorneys, Divo
Pierce Christopher
312 E Lincoln Ave
Barrington, IL 60010
(847) 382-8640
General Practice Attorneys, Attorneys
Giampoli Frank J
428 S Batavia Ave
Batavia, IL 60510
(630) 406-8640
General Practice Attorneys, Attorneys, Legal Service Plans
Meroni & Meroni PC
5 Bellwood Dr
Barrington, IL 60010
(847) 805-8403
Patent, Trademark & Copyright Law Attorneys,  Attorneys,  Patent Agents,  Personal Property Law Att
Belvedere Josette
1312 N La Salle Dr
Chicago, IL 60610
(312) 337-8296
General Practice Attorneys, Attorneys
Hinrichs Timothy C
476 S Prairie St
Bethalto, IL 62010
(618) 377-8252
Attorneys, Family Law Attorneys, Wills, Trusts & Estate Planning Attorneys, Corporation & Partnershi
Total Attorneys - Personal Injury
PO Box 274216
Arcola, IL 61910
(217) 666-7862
Attorneys, Legal Service Plans
Melody B. Davoust
715 Hunter Dr
Batavia, IL 60510
(630) 879-7007
Attorneys,  Family Law Attorneys,  Litigation & Tort Attorneys,  Adoption Law Attorneys,  Civil Liti
Carroll Law Offices PC
510 S Batavia Ave
Batavia, IL 60510
(630) 406-6933
General Practice Attorneys, Attorneys
Boehm & Boehm
201 W Main St
Barrington, IL 60010
(847) 381-6857
Estate Planning Attorneys, Attorneys, Family Law Attorneys, Divorce Attorneys, Business Law Attorney
Christopher Agrella Law Office
330 E Main St
Barrington, IL 60010
(847) 381-6800
Attorneys,  General Practice Attorneys,  Legal Service Plans,  Criminal Law Attorneys
Christopher Cooper, Inc. (Civil Rights Practice, Chicago)
1140 N La Salle Dr
Chicago, IL 60610
(312) 371-6752
Attorneys, Labor & Employment Law Attorneys, Employee Benefits & Worker Compensation Attorneys
Irene Clarke David
18 E Dundee Rd Building 6
Barrington, IL 60010
(847) 382-6620
Attorneys, Estate Planning Attorneys, Wills, Trusts & Estate Planning Attorneys
Anderson IV William M
625 S Main St
Creve Coeur, IL 61610
(309) 694-6250
Attorneys,  Criminal Law Attorneys,  Mediation Services,  Legal Service Plans
Youssi & Youssi Ltd
150 Houston St
Batavia, IL 60510
(630) 879-5777
Attorneys
Michael T. Schulenberg
428 S Batavia Ave
Batavia, IL 60510
(630) 487-5692
Attorneys, Family Law Attorneys, Divorce Attorneys, General Practice Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US