FSBO Contract and Purchase Agreement: What Sellers Need (2026)

The purchase agreement is the legal backbone of any home sale. As a FSBO seller, you are responsible for getting this document right.

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What Is a Purchase Agreement?

A purchase agreement (also called a sales contract or purchase and sale agreement) is a legally binding contract between buyer and seller that specifies:

• Purchase price and earnest money amount
• Closing date and possession date
• Contingencies (inspection, financing, appraisal, title)
• Personal property included or excluded
• Disclosures referenced and attached

Once both parties sign, the deal is under contract.

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Where to Get a FSBO Purchase Agreement

1. State bar association templates -- many state bars sell standardized forms for $20 to $50
2. Title companies -- often provide contracts as part of their escrow service
3. Real-estate attorneys -- $200 to $500 for a custom-drafted contract
4. Online legal services -- LegalZoom, Rocket Lawyer ($99 to $199)
5. Agent-supplied forms -- some buyer's agents will bring their brokerage's standard form to the table

Do NOT download a generic form from a random website. Each state has specific language requirements.

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Key Clauses Every FSBO Contract Should Include

1. Identification of Parties

Full legal names of all buyers and sellers.

2. Property Description

Legal description from the deed, not just the street address.

3. Purchase Price and Earnest Money

• Purchase price: the agreed amount
• Earnest money: typically 1 to 3 percent of the price, held in a neutral escrow account
• Payment terms: cash, financed, or seller-financed

4. Financing Contingency

States the buyer's deadline to obtain a mortgage commitment. Standard is 30 to 45 days. If the buyer cannot secure financing, they can cancel and get their earnest money back.

5. Inspection Contingency

Gives the buyer a set period (typically 7 to 14 days) to conduct professional inspections. After the inspection, the buyer may:

• Accept the property as-is
• Request repairs or credits
• Cancel if defects are material

6. Appraisal Contingency

If the buyer is financing, the lender will require an appraisal. If the appraisal comes in below the agreed price, the buyer can renegotiate or walk away.

7. Title Contingency

Requires the seller to deliver clear, marketable title. If a title search reveals unexpected liens or encumbrances, the buyer can terminate.

8. Closing and Possession Dates

• Closing: when money and deeds change hands
• Possession: when the buyer gets keys. These can be the same day or the seller may negotiate a rent-back (seller stays 3 to 7 days post-closing).

9. Prorations

Property taxes, HOA dues, and utility bills are prorated to the closing date.

10. Default and Remedies

What happens if either party breaches the contract. Earnest money is typically the seller's remedy if the buyer walks without a valid contingency.

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Addenda You May Need

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Mistakes FSBO Sellers Make with Contracts

1. Using an outdated form -- real-estate law changes; use the current year's version
2. Leaving blanks -- every field should be completed or marked N/A
3. Not specifying "as-is" clearly -- if you are selling as-is, say so explicitly
4. Verbal changes -- all modifications must be in writing and signed by both parties
5. Missing deadlines -- contingency and closing deadlines are legally binding

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Getting It Right

A well-drafted purchase agreement protects both parties and keeps the transaction on track. $500 for an attorney's review is cheap insurance against a derailed sale or a lawsuit.

For help managing your FSBO marketing pipeline while you handle the legal details, visit Sellabl.

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Disclaimer: This article is educational information, not legal advice. Always consult a licensed real-estate attorney in your state for contract preparation and review.