Free For Sale by Owner Contract Template

This For Sale by Owner Real Estate Purchase Contract (this "Contract") is entered into and effective as of ________________ between ________________ ("Seller") and ________________ ("Buyer"), who agree to the sale and purchase of the Property on the terms below.

1. PARTIES. This Contract is made directly between ________________, as Seller, and ________________, as Buyer, in an owner-to-owner sale in which no real estate broker represents either party. Each party is encouraged to obtain independent legal, tax, title, and inspection advice before signing.

2. PROPERTY. The Seller agrees to sell and the Buyer agrees to buy the real property located at ________________, more particularly described as ________________, together with all improvements, fixtures, and rights that belong to it (the "Property").

3. PURCHASE PRICE. The total purchase price for the Property is $ ________________, payable by the Buyer as provided in this Contract.

4. EARNEST MONEY. The Buyer shall deposit $ ________________ as earnest money, to be held by ________________ in trust and credited to the purchase price at closing. If the sale closes, the earnest money is applied for the Buyer. If the Buyer defaults, the earnest money may be applied as provided in the Default clause below.

5. PAYMENT AND FINANCING. The purchase price shall be paid as follows: ________________. Where financing applies, the Buyer shall apply promptly and pursue the loan in good faith, and this Contract is contingent on the Buyer obtaining that financing unless the contingency is waived in writing.

6. CLOSING AND POSSESSION. The sale shall close on or about ________________, at which time the Seller shall deliver a signed deed conveying marketable title free of liens except those the Buyer agrees to accept, and the Buyer shall pay the balance of the purchase price. The Seller shall deliver possession of the Property to the Buyer ________________, free of occupants and of personal property except the items included in the sale.

7. FIXTURES AND INCLUDED PROPERTY. The following items are included in the sale at no additional cost: ________________. The following items are excluded from the sale and remain the property of the Seller: ________________.

8. CONDITION AND INSPECTION. The Property is offered on the following basis: ________________. The Buyer may, at the Buyer's expense, inspect the Property within the time agreed and may cancel or seek to renegotiate this Contract if material defects are found, subject to the contingencies below. The Seller shall provide any property condition disclosures required by law.

9. CONTINGENCIES. This Contract is subject to the following contingencies: ________________. If a contingency is not satisfied or waived within the time agreed, either party may cancel this Contract, and the earnest money shall be returned to the Buyer unless this Contract states otherwise.

10. CLOSING COSTS AND PRORATIONS. Responsibility for closing costs is as follows: ________________. Property taxes, assessments, association dues, rents, and utilities shall be prorated between the parties as of the closing date. Except as stated, each party pays the costs customarily paid by that party in ________________.

11. DEFAULT AND REMEDIES. If the Buyer defaults, the Seller may cancel this Contract and retain the earnest money as liquidated damages or pursue any other remedy allowed by law. If the Seller defaults, the Buyer may recover the earnest money and pursue any other remedy allowed by law. The parties shall act in good faith to resolve any dispute before pursuing legal action.

12. GOVERNING LAW. This Contract is governed by the laws of the State of ________________, and time is of the essence. If any provision is found unenforceable, the remaining provisions stay in full effect. This Contract is the entire agreement between the parties regarding the sale of the Property and may be changed only in writing signed by both parties.

This is a general template and not legal advice. Real estate contracts, required disclosures, title and deed requirements, and the wording needed to make a home sale enforceable vary by state, and many states require specific forms or an attorney or title company at closing. Review the requirements of ________________ or have an attorney review this Contract before use.