Updated October 2026. For Alabama owners selling without a listing agent who need a sound purchase contract.
An Alabama for sale by owner contract is a written purchase agreement signed by you and the buyer. It covers price, earnest money, financing, inspections, title and the closing date. Alabama is a “buyer beware” state for used homes, with 3 exceptions where you must disclose. The state deed tax is $0.50 per $500 of value, or $400 on a $400,000 home.
Jump to: 🪜 What goes in it · 📍 Alabama disclosure rules · 💲 Costs · 🤝 Offer to closing · ❓ FAQ
Key takeaways
- Alabama follows caveat emptor for used homes. You must still disclose defects that affect health or safety, answer direct questions truthfully, and disclose where a fiduciary relationship exists.
- In 2020 the Alabama Supreme Court upheld an “as is” clause that blocked a buyer’s claims after closing.
- Deed tax is $0.50 for each $500 of value under Ala. Code 40-22-1.
- Homes built before 1978 need a federal lead paint disclosure, whatever the state rules.
Most FSBO deals in Alabama start with the buyer’s written offer. You accept, counter or decline. Here’s what the contract should say, what Alabama law expects from sellers, and what closing costs.
What is a for sale by owner contract?
It’s the purchase agreement between you and your buyer, with no listing agent in between. It’s the same type of contract an agent would use. Once both of you sign it, it’s binding, so every term matters.
You can use a standard Alabama form, an attorney-drafted contract, or the buyer agent’s form if the buyer has one. Templates from random websites often miss state details. For general legal background, the Nolo website explains contract basics in plain English. For the full picture of FSBO paperwork, see our guide to who draws up a for sale by owner contract.
What goes into an Alabama FSBO purchase agreement?
| Term | What to check |
|---|---|
| Price and earnest money | The amount, when it’s due, and who holds it (a title company or attorney, not you). |
| Financing | Cash or loan, the loan type, and the deadline for loan approval. |
| Appraisal | What happens if the appraisal is below the price. |
| Inspections | How many days the buyer has, and what happens if they find problems. |
| “As is” clause | Whether the buyer takes the home in its current condition. |
| Title and closing | Who picks the closing attorney or title company, who pays title insurance, and the date. |
| Default | What happens to the earnest money if either side backs out. |
Name the escrow holder in the contract, and never keep the buyer’s deposit in your own account. Counteroffers should be in writing, dated and signed. A verbal deal on real estate isn’t enforceable.
What does an Alabama seller have to disclose?
Alabama applies caveat emptor, “let the buyer beware,” to used homes. In general, you don’t have to volunteer the home’s condition. But there are three exceptions, as the Alabama REALTORS® legal helpdesk explains, citing Alabama Supreme Court cases.
- Health or safety. If you know of a material defect that affects health or safety and the buyer can’t readily see it, you must disclose it.
- Fiduciary relationship. If the buyer has a special relationship of trust with you, you must disclose.
- Direct questions. If the buyer asks about a specific defect, you must answer truthfully.
An “as is” clause matters a lot here. In Kidd v. Benson (2020), the Alabama Supreme Court held that a buyer who buys under an “as is” clause can’t use these exceptions, as the Alabama REALTORS® summary of the ruling notes. Our advice: be honest anyway. Disclosing known problems up front avoids fights, and false answers can still bring fraud claims.
Federal rules apply too. For most homes built before 1978, you must give a lead paint disclosure and pamphlet before the buyer signs, per the EPA. More on this in our guide to disclosures when selling a house.
What does it cost to close an FSBO sale in Alabama?
Selling by owner removes the listing commission. You’ll still have closing costs, and the deed tax is a fixed state charge.
| Cost | Rate | On a $400,000 sale |
|---|---|---|
| Deed tax | $0.50 per $500 of value | $400 |
| Closing attorney or title company fee | Set by the provider | Get quotes |
| Title insurance, recording, prorated property taxes | Varies | Set at closing |
The deed tax rate is in Ala. Code 40-22-1, as amended by Alabama SB216 (2012). Your contract decides who pays each cost, so fill in those lines.
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Buy a home →Taxes on any gain are separate. The closing agent usually reports the sale on Form 1099-S, and many owners can exclude some or all of the gain on a main home. The IRS website explains the rules. You’ll also need the parcel number for the deed; here’s how to find your Alabama parcel number.
How does an Alabama FSBO sale go from offer to closing?
- Price the home and get it in front of buyers, ideally on the MLS.
- Receive a written offer, then accept, counter or decline in writing.
- Once signed, the buyer delivers earnest money to the escrow holder.
- The buyer inspects, and you negotiate any repairs or credits.
- The lender orders an appraisal, and the closing attorney or title company searches title.
- Both sides sign at closing, the deed is recorded, and you get paid.
Selling as-is? Read how to sell a home as-is. And see who pays closing costs when selling for the usual split.
What are common Alabama FSBO contract mistakes?
- Signing a buyer’s offer with blank deadlines.
- Holding the earnest money yourself.
- Answering a buyer’s question about a defect with a guess.
- Forgetting the lead paint disclosure on an older home.
- Not naming who pays deed tax, title insurance and closing fees.
How does Beycome help Alabama FSBO sellers?
A Beycome flat fee MLS listing puts your Alabama home on the local MLS for $99, with $0 at closing. You get state forms in your dashboard, an offer dashboard with e-signature, unlimited listing changes, and the Artur AI assistant to help you read offers.
Want experts to negotiate for you? Concierge is offered at $999 (list price $1,399), still $0 at closing, and you stay in control of every decision. For a Florida sale, see our Florida FSBO contract guide.
Frequently asked questions
Do I need a lawyer to sell my house by owner in Alabama?
You’re not required to hire one to sign a contract. Many sellers still use a real estate attorney to review it, and an attorney or title company handles the closing.
Does Alabama require a seller disclosure form?
Alabama follows caveat emptor for used homes, so there’s no general state form. You must disclose known health or safety defects, answer direct questions truthfully, and give the lead paint disclosure for most pre-1978 homes.
How much is the deed tax in Alabama?
$0.50 for each $500 of value, which is $1 per $1,000. On a $400,000 home, that’s $400.
Is an “as is” contract binding in Alabama?
Yes. In 2020 the Alabama Supreme Court upheld an “as is” clause and said the buyer couldn’t use the disclosure exceptions. Fraud through false statements is a separate issue.
Where can I get a for sale by owner contract?
From a real estate attorney, a title company, or your listing service. Beycome sellers get state forms in their dashboard.
Who holds the earnest money in an FSBO sale?
A neutral escrow holder named in the contract, usually the closing attorney or title company. Not the seller.
Rates and prices as of October 2026 and subject to change. “$0 at closing” means no Beycome fee at closing; deed tax, title insurance, recording fees, prorated taxes and any agreed buyer-agent compensation still apply. Basic and Enhanced get offer help from the Artur AI assistant, not a person. Concierge list price $1,399, offered at $999 for a limited time. General information, not legal or tax advice; have an Alabama attorney review your contract.
Sources
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