Legal Checklist for FSBO Sellers: Essential Documents You’ll Need

Legal Checklist for FSBO Sellers: Essential Documents You’ll Need

Selling your home by owner (FSBO) means taking charge of every step of the process—including handling the legal paperwork. To ensure a smooth, successful sale, it’s crucial to be familiar with the key documents required. Here’s a legal checklist for FSBO sellers to help you get started.

1. Property Disclosure Form

Most states require sellers to provide a property disclosure form, which informs buyers of any known issues with the property, such as structural defects or environmental hazards. It’s a legal safeguard that helps protect both parties during the sale.

2. Purchase Agreement

The purchase agreement is the contract between you and the buyer. It outlines the terms of the sale, including the purchase price, contingencies (like inspections), and the closing date. This is the most important legal document in the transaction.

3. Deed

The deed transfers ownership of the property from you to the buyer. This document will need to be prepared, signed, and recorded with the local government after the sale is finalized.

4. Title Report

A title report is necessary to show that you legally own the property and that there are no liens or claims against it. You’ll need to provide a clear title to the buyer before the sale can close.

5. Closing Statement

The closing statement itemizes all of the financial aspects of the transaction, including the sale price, closing costs, taxes, and any other fees. It ensures that both you and the buyer are on the same page financially.

6. Bill of Sale

The bill of sale lists any personal property being included in the sale, such as appliances, fixtures, or furniture. It clearly outlines what is being sold along with the home.

7. Lead-Based Paint Disclosure

If your home was built before 1978, federal law requires you to provide a lead-based paint disclosure to inform buyers of any potential lead hazards in the property.

By staying organized and ensuring all required legal documents are in place, you can confidently manage your FSBO sale and avoid any legal hiccups along the way.