12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents
 
 
FINANCIAL & MARITAL

Cohabitation Agreement coming soon!
Separation Agreement coming soon!
No-Fault Divorce coming soon!
Bankruptcy coming soon!
 
 

Essential Elements in a For Sale by Owner (FSBO) Contract in Downey, CA

Essential Elements in a For Sale by Owner (FSBO) Contract in Downey, CA


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.

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 CA Last Will Create 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 CA Living Will Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Related Legal Services near Downey, CA
United Legal Group
8607 Imperial Hwy Ste 100
Downey, CA 90242
(562) 862-9944
Bankruptcy Law Attorneys, Bankruptcy Services, Attorneys
Danelle Lloyd
12007 Paramount Blvd Suite #3
Downey, CA 90242
(562) 485-9897
Attorneys,  Legal Service Plans,  Business Bankruptcy Law Attorneys,  Bankruptcy Law Attorneys
Southern California Immgrtn
8419 Florence Ave # A
Downey, CA 90240
(562) 862-9878
Immigration Law Attorneys, Attorneys, Immigration & Naturalization Consultants
Hansen's Guaranteed
9530 Imperial Hwy Ste D
Downey, CA 90242
(323) 904-9460
Attorneys Referral & Information Service
Malhotra & Malhotra Law Office
7847 Florence Ave # 111
Downey, CA 90240
(562) 806-9400
Attorneys, Legal Service Plans, Family Law Attorneys, General Practice Attorneys
9040 Telegraph Rd
Downey, CA 90240
(562) 622-9222
Attorneys
Posada Henry
8280 Florence Ave # 220
Downey, CA 90240
(562) 904-9080
Attorneys,  Accident & Property Damage Attorneys,  General Practice Attorneys,  Legal Service Plans
Oliver Stephen Law Office
OLIVER Stephen LAW
Downey, CA 90241
(562) 869-8829
General Practice Attorneys, Attorneys, Legal Service Plans
La County Juvenile Public Defender
7281 Quill Dr
Downey, CA 90242
(562) 940-8829
Juvenile Law Attorneys, Attorneys
Attorney Javier Serrano
9040 Telegraph Road, Suite 206
Downey, CA 90240
(562) 631-8660
Child Support Collections, Criminal Law Attorneys, Divorce Attorneys, Landlord & Tenant Attorneys, A
L A Financial Solutions
9900 Lakewood Blvd # 216
Downey, CA 90240
(562) 659-8554
Paralegals
Mireya Immigration Svc
11418 Old River School Rd
Downey, CA 90241
(562) 776-8300
Immigration Law Attorneys, Immigration & Naturalization Consultants, Attorneys
Accesso Legal
8607 Imperial Hwy
Downey, CA 90242
(562) 862-8295
Attorneys Referral & Information Service, Legal Service Plans, Attorneys
Leland Judith S Former SSI Judge
8345 Firestone Blvd
Downey, CA 90241
(800) 772-8118
Attorneys,  Administrative & Governmental Law Attorneys,  Social Security Services,  Social Security
Lago Peter L
8350 Florence Ave # 200
Downey, CA 90240
(562) 353-8006
Attorneys, Social Security & Disability Law Attorneys, Bankruptcy Law Attorneys
Guillermo Espino Services LLC
7340 Florence Ave Suite 112
Downey, CA 90240
(626) 419-7351
Paralegals, Immigration & Naturalization Consultants
Davies John
8607 Imperial Hwy Ste 203
Downey, CA 90242
(562) 862-7171
General Practice Attorneys, Attorneys, Legal Service Plans
Downey ParaProfessional Services
7340 Florence Ste 201
Downey, CA 90240
(562) 587-7067
Paralegals
Hoffman Steven J
8301 Florence Ave # 200
Downey, CA 90240
(562) 869-6992
General Practice Attorneys, Attorneys, Legal Service Plans
Judith S. Leland, APLC
8345 Firestone Blvd
Downey, CA 90241
(562) 904-6955
Social Security & Disability Law Attorneys,  Attorneys,  Labor & Employment Law Attorneys,  Corporat
Aaa Disability Law Firm
8345 Firestone Blvd # 300
Downey, CA 90241
(562) 904-6955
Social Security & Disability Law Attorneys, Attorneys, General Practice Attorneys, Legal Service Pla
AAA Disability Law Firm
8345 Firestone Blvd
Downey, CA 90241
(562) 904-6955
Social Security & Disability Law Attorneys, Attorneys, Social Security Services, Employee Benefits &
Saab Dennis
10810 Paramount Blvd # 202
Downey, CA 90241
(562) 862-6787
Legal Service Plans, Attorneys, Immigration Law Attorneys, General Practice Attorneys
James Mendez
8301 Florence Avenue, #200
Downey, CA 90240
(562) 923-4946
Mon-Fri 9am-5pm, Sat Closed, Sun Closed, 24 Hour Emergency Service Available
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US