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Find Vivian HereIn Florida, 36% of homeowners try to sell their home without an agent. FSBO homes often sell faster—about one week compared to three for agent-assisted sales. While FSBO sales can be quicker, having a solid contract is important. A well-drafted FSBO contract protects both the buyer and seller by clearly outlining terms and contingencies. This reduces the risk of cancellations, which affected 15.8% of all home purchase agreements in July 2024. Moreover, with the recent NAR settlement making buyer agent commissions negotiable, FSBO sellers can now save an additional 3% commission. Choosing a trusted Flat Fee company to list as FSBO on the MLS can help you make the most of these savings.
A For Sale By Owner contract in Florida, also known as a “For Sale By Owner purchase agreement in Florida,” outlines the terms and conditions of your home sale. These terms include contingencies, deadlines, and closing processes.
A well-drafted FSBO purchase agreement in Florida protects you and the buyer throughout the transaction. In the contract, you need to include elements such as:
A simple For Sale By Owner contract in Florida has the purchase price, down payment, and closing date. Mention who pays the closing cost, or if it should be split between both parties. Also, include contingencies if the conditions of the home sale are not fulfilled.
Define parameters if the buyer needs to finance the property through cash or via a lender. This should include the loan the buyer opts for and the earnest money deposit. Also, Add a timeframe for the buyer to secure the financing.
Also, include the option to return the buyer’s earnest money if the financing falls through. For all-cash deals, mention the minimum percentage of a bank transfer or if you’d like hard cash.
» Home Value Calculator: Get an estimate of your property’s worth before planning your budget.
Allow the buyer to arrange for a home inspection. Set in place certain clauses should any critical issues arise during the inspection. Also, set a deadline for the inspection or any repairs if you undertake them.
If extreme cases arise, determine the dealbreakers for a termination of the sale. In minor instances, decide if the home’s price will be renegotiated.
A deed mentions the exact title you will transfer to the buyer. The most common way to transfer a property title is by warranty deeds. Unless married, be careful how you want to hold property jointly in Florida. A deed is completed at the time of purchase and can be amended to include or exclude certain names.
Double-check the name on your property in official land records from the county assessor’s office. You must also include the timeline for the transfer of the title. This section should specify the title company as well as who pays for title insurance.
Here you should clearly outline the consequences if either party breaches the contract. Specify methods to handle missed payments and delays. Mention contingencies in case of a failure to close within the predetermined date.
Ensure that none of the contingencies give you the bad end of the deal. If any contingency applies, you should be able to back out of the contract.
This section must include relevant Florida seller disclosure forms. Here you must pledge that you abide by Florida’s laws for seller disclosures. It contains details such as the ownership history, tax status, and any known home defects.
Was your home built before 1978? Then make sure you submit the “Lead-Based Paint Disclosure” (addendum) with the contract.
This section notes procedures for settling disputes that may arise throughout the transaction. List arbitration or different mediations as a substitute for dispute resolution. Instead of going to court, hire a real estate lawyer to help you reach the best amicable solution.
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Florida Attorney Near MeWhen creating a For Sale By Owner home contract in Florida, consider including these contingencies:
Subject to Finding Replacement Property Contingency*: You can back out of the sale if you can’t find a new property within a specified timeframe (e.g., 30-60 days). Avoid the crisis of renting interim housing or being pushed into a hasty purchase.
Sale of Seller’s Current Home Contingency*: This contingency allows you to back out of the current sale within a specific timeframe. You are protected from financial difficulties due to overlapping mortgages or from owning two properties.
Appraisal Contingency*: This contingency protects you if the property doesn’t appraise for the agreed-upon purchase price. The contract could specify that the buyer covers the difference (appraisal gap) in cash, renegotiation, or termination.
*Note: These contingencies might make the offer less attractive to buyers. Weigh the risks and benefits carefully.
While taking a look at contingencies and clauses when selling a house in Florida, do not forget to clarify the basics in your contract such as:
For Sale By Owner Contract Agreement in Florida
If you’re confident in your ability to create For Sale By Owner contracts in Florida that protect your interests, proceed with caution. The contract for selling a house by owner in Florida helps with legal clarity, reduces risk, and ensures regulatory compliance.
For those still unsure about handling the paperwork for selling a house without a Realtor in Florida. You can opt for Flat Fee companies like Houzeo that can assist you from listing to closure.
**Remember: While this blog covers key aspects of a purchase contract For Sale By Owner in Florida, consulting a real estate attorney is highly recommended to ensure your Florida FSBO contract complies with all state regulations.
» Need More Clarity? Read these exclusive Houzeo reviews and learn why it is one of the best Flat Fee Multiple Listing Services in Florida.
A For Sale By Owner real estate contract in Florida must include both party names, addresses, and the home's price. Additionally include disclosures, selling timelines, financing options, and more.
A FSBO sales contract in Florida works like the traditional "Real Estate Purchase Agreement". The only difference is that the seller draws up the For Sale By Owner contract agreement instead of the agent. One contingency is to determine who pays closing costs.
The seller draws up the For Sale By Owner real estate contract. However, the seller can hire other professionals to do the job. They can be the buyer's agent or a Florida real estate attorney.