For Sale By Owner Contract Considerations

December 8, 2020

Jackie Durham and Jo Ann Koontz (Koontz & Associates, PL) discuss contract considerations you need to be aware of if you're participating in a for sale by owner real estate transaction. A knowledgeable Realtor® will provide priceless information. However, an attorney will draft and review your contracts if you decide to go it alone. Be prepared. Koontz & Associates, PL are available to help with contracts and can help find the right Realtor® for you.

2:16 Get your attorney to create and review contracts early in the transaction process.

7:30 Important contract notes/provision: Deposit provisions, accuracy of property description, financing provision.

15:50 Provision closing contingent on final loan approval.

16:50 Avoiding title defects. Insurable title vs. marketable title.

23:29 Title description needs to be accurate to what the buyer is subject to.

26:10 Inspection provision: Physical condition and negotiation of repair.

31:56 Provision for selling a home in order to buy a new home. And pre/post-sale occupancy agreement.

34:10 Appraisal and interest contingency. Without this contingency, you can be responsible for bringing more cash to the closing table if the appraisal doesn't come in at the right number.

35:34 Closing costs and expenses. Make sure closing costs are allocated in the contract.

38:14 Required disclosures: seller disclosure statement, HOA disclosure statements, permit disclosure.

44:09 Importance of the final walkthrough.

45:35 Tax bill can be impacted by homestead exemption and military veteran tax liability.

48:04 Risks if home recently had a quitclaim deed 52:37 Buying home from an estate.


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