For Sale by Owner Purchase Contract California

If you`re looking to sell your property in California, opting to go the “for sale by owner” route is becoming an increasingly popular choice. Not only does it allow you to cut out the middleman, but it also enables you to have more control over the sale process. However, before you dive into selling your property, there are a few things you need to know about for sale by owner purchase contracts in California.

What is a for sale by owner purchase contract?

A for sale by owner purchase contract (also known as an FSBO contract) is a legal document that outlines the terms and conditions of a property sale between the buyer and seller. It covers everything from the price of the property to the contingencies and closing costs.

In California, there is no legal requirement to use a real estate agent to sell your property. However, it`s important to note that without an agent, you will be responsible for handling all aspects of the sale process, including marketing, showing the property, negotiating with potential buyers, and creating and executing the sales agreement.

Why use an FSBO contract?

Opting for an FSBO contract in California gives you more flexibility, control, and savings in the sales process. Here are some reasons why:

– Cost savings: By not using a real estate agent, you can avoid paying a commission, which is typically 6% of the sale price. This can potentially save you thousands of dollars.

– Control: As the seller, you have complete control over the sale process. You get to decide when to show the property, how to price it, and how to negotiate the terms with the buyer.

– Flexibility: By not being tied to an agent`s schedule, you can be more flexible with showing times and open houses.

What should be included in an FSBO contract?

To ensure a smooth and legally binding transaction, the following elements should be included in your for sale by owner purchase contract:

– Purchase price: This is the amount that the buyer agrees to pay for the property.

– Contingencies: This includes any conditions that must be met before the sale can be finalized, such as financing, inspection, or appraisal contingencies.

– Closing date: This is the date on which the sale will be finalized, and the buyer will take possession of the property.

– Closing costs: This includes all the fees associated with closing the sale, such as title insurance, escrow fees, and recording fees.

– Property disclosures: As the seller, you are required by law to disclose any known defects or issues with the property.

– Signatures: Both the buyer and seller should sign the contract to make it legally binding.


Selling a property through a for sale by owner purchase contract can be a rewarding and cost-effective way to sell your property in California. However, it`s important to take the time to understand the legal requirements involved in the sales process and ensure that your contract includes all the necessary elements for a smooth and legally binding transaction.

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