FSBO Contract and Purchase Agreement: What Sellers Need (2026)
Quick Answer
A FSBO purchase agreement is a legally binding contract that outlines price, earnest money, closing dates, contingencies, and property details. Use a state-approved template, fill every field, and include key clauses like financing, inspection, appraisal, and title contingencies to protect both parties.
Seller Next Step
If you’re managing a FSBO sale, Sellable can streamline the contract process. Upload your completed agreement, track buyer signatures, and receive automated reminders for contingencies and closing dates,all from one dashboard designed for solo agents and homeowners.
The purchase agreement is the legal backbone of any home sale. As a FSBO seller, you are responsible for getting this document right.
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.
Where to Get a FSBO Purchase Agreement
- State bar association templates -- many state bars sell standardized forms for $20 to $50
- Title companies -- often provide contracts as part of their escrow service
- Real-estate attorneys -- $200 to $500 for a custom-drafted contract
- Online legal services -- LegalZoom, Rocket Lawyer ($99 to $199)
- 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.
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.
Addenda You May Need
| Addendum | When Required |
|---|---|
| Lead-Based Paint | Pre-1978 homes (federal law) |
| Home Sale Contingency | Buyer must sell their home first |
| HOA Addendum | Property is in a homeowners association |
| Well/Septic Addendum | Property has private well or septic system |
| Flood Zone Disclosure | Property is in a FEMA flood zone |
| Radon Disclosure | Required in many states |
Mistakes FSBO Sellers Make with Contracts
- Using an outdated form -- real-estate law changes; use the current year's version
- Leaving blanks -- every field should be completed or marked N/A
- Not specifying "as-is" clearly -- if you are selling as-is, say so explicitly
- Verbal changes -- all modifications must be in writing and signed by both parties
- Missing deadlines -- contingency and closing deadlines are legally binding
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 (opens in a new tab).
Disclaimer: This article is educational information, not legal advice. Always consult a licensed real-estate attorney in your state for contract preparation and review.
Frequently Asked Questions
What happens if I use a generic contract from an unknown website? Using a non-state-specific form can miss required language, leaving the contract vulnerable to disputes. Verify that any template matches your state’s real-estate statutes.
Do I need a separate addendum for a home in a flood zone? Yes. Federal flood-zone disclosures are required when a property falls within a FEMA-designated area. Include a specific addendum to avoid liability.
Can I set the earnest money amount lower than 1 %? Earnest money is negotiable, but most buyers expect 1-3 % of the purchase price. A lower amount may make the offer less attractive; confirm the buyer’s expectations before finalizing.
How long should the inspection contingency period be? Typical periods range from 7 to 14 days. Adjust the timeline based on the property’s condition and the buyer’s schedule, and clearly state the deadline in the contract.
What if the buyer’s financing falls through after the deadline? If the financing contingency expires without a commitment, the buyer can breach the contract, and you may retain the earnest money as liquidated damages, provided the clause is clearly written.
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