Sale by owner does look good but this kind of transaction involve much work.
From legal point, verbal promise is not contract. How to obtain standard contract form? What clauses are required to protect buyer’s interest? What contingencies should include in contract?
Re: For Sale by Owner
Sale by owner does look good but this kind of transaction involve much work.
From legal point, verbal promise is not contract. How to obtain standard contract form? What clauses are required to protect buyer's interest? What contingencies should include in contract?
This is why For Sale By Owner is a bad idea unless you have industry knowledge (like are a mortgage lender/escrow agent/former realtor yourself). First of all, each state has its own rules and regulations regarding their prolmagated forms, but in Texas, the residential sales contract and related addendums are not to be used by anyone but a licensed realtor. There is just too much paperwork involved and moving parts with rules and regulations changing by the minute. October 3 ushers in sweeping changes to lending and title work closings thanks to the Dodd-Frank Act. We have new contracts in Texas now to align with the new Closing Disclosures that is replacing the HUD-1 settlement statement.
That being said, most FSBO's can obtain these forms from title companies. Texas does not recognize verbal agreements, unless you have something signed, executed and consideration (money!) has exchanged hands you don't have anything. As far as clauses required to protect buyers interest and contingencies, these are extremely broad ended questions that cannot be answered without knowing 1) what state you're residing in 2) are you the buyer or seller?
Do yourself a favor and enlist the help of a licensed Realtor. You may think you'll save money as a seller but study after study has shown that using a Realtor actually nets you a higher sales price then if you try to go FSBO. As a buyer, (depending on what state you're in again) it doesn't cost you single penny to be represented by a buyers agent, as commissions are paid by the seller, so why would you want to go it alone? If you're interested in buying a FSBO and a seller has said they will NOT pay any agent, then it's still in your best interest to pay an agent to represent you.
Re: For Sale by Owner
Just sign up khatti