Updated October 2026. For buyers and sellers doing a for sale by owner deal, in any state.
In a for sale by owner sale, the buyer usually draws up the contract: their agent fills out a state form, or, with no agent, the buyer or a real estate attorney does. The seller reviews it and accepts, counters or declines. A sound contract covers at least 8 things: parties, property, price, deposit, financing, contingencies, closing date and signatures.
Jump to: 🤝 Who writes it · 🪜 What’s in it · 🏠 Contingencies · 💲 Cost · ❓ FAQ
Key takeaways
- Start from your state’s standard purchase form, not a generic template. State forms include required notices.
- Contingencies for financing, appraisal and inspection protect the buyer; clear deadlines protect the seller.
- The deposit goes to a neutral escrow holder, such as a title company or attorney, never straight to the seller.
- For homes built before 1978, federal law requires a lead paint disclosure before the buyer signs.
A purchase agreement is the document that turns a handshake into a sale. Once both sides sign it, it’s binding. Here’s who writes it, what it must say, and how to avoid the usual FSBO mistakes.
Who draws up a for sale by owner contract?
There’s no single answer. It depends on who’s at the table.
| Situation | Who usually writes the contract |
|---|---|
| Buyer has an agent | The buyer’s agent, on a standard state form |
| Buyer has no agent | The buyer or seller fills out a state form; often an attorney drafts or reviews it |
| Owner financing or unusual terms | A real estate attorney |
| Closing | A title company or closing attorney prepares the closing documents |
In some states an attorney must handle the closing. In others a title company does it. Either way, the contract should name who holds the deposit and who closes.
Both sides can sign by hand or with an online signature. Electronic signing is common for purchase contracts; ask your title company or attorney what they accept for the closing documents.
What goes into a real estate purchase agreement?
- The parties: full legal names of every seller on the deed and every buyer.
- The property: street address and legal description or parcel number.
- The price and how it’s paid: cash, loan or owner financing.
- The earnest money deposit: amount, due date and escrow holder.
- Contingencies and their deadlines (see below).
- What stays with the home: appliances, fixtures and anything else.
- Closing date, possession date, and who pays which closing costs.
- Disclosures, default terms and signatures with dates.
Leave nothing blank. A blank deadline is an argument waiting to happen. If a term doesn’t apply, write “N/A.”
Selling vacant land instead of a house? The same basics apply. Land buyers such as CashOnLands.com buy lots directly, and you’d still want a written purchase agreement with a clear legal description and closing terms.
Which contingencies and disclosures matter most?
Financing
The buyer can cancel and get the deposit back if the loan falls through by a set date. Sellers should ask for a preapproval letter with the offer.
Appraisal
If the lender’s appraisal comes in below the price, the buyer can renegotiate or cancel. Some buyers agree to cover part of a gap. Write it down either way.
Inspection
The buyer gets a set number of days to inspect. In an “as is” deal, the seller doesn’t promise repairs, but the buyer may still be able to cancel during that window, depending on the form.
Disclosures
Disclosure rules are set by each state. Some require a detailed form; others follow “buyer beware” with exceptions. Federal law adds one rule everywhere: for most homes built before 1978, the seller must give a lead paint disclosure and pamphlet before the buyer signs, per the EPA. Our guide to seller disclosures covers the common ones.
State details differ a lot. See our guides for a Florida FSBO contract and an Alabama FSBO contract.
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Buy a home →How do you buy a house from an owner with a contract?
If you’re the buyer, you’ll likely write the offer. Start from your state’s standard form, fill in every blank, and attach your preapproval letter. Include financing, appraisal and inspection contingencies with clear dates.
Put your deposit with a title company or attorney, not in the seller’s hands. Order a title search early, so liens or ownership problems show up before closing. Our step-by-step guide on buying a house from an owner goes deeper.
Want representation without paying upfront? The Beycome buyer program has no upfront fee. Beycome keeps 1% of the price (minimum $1,599) from the buyer-agent commission and credits the rest to you at closing. On an owner sale where the seller offers less than that minimum, you’d cover the gap at closing.
How much does a for sale by owner contract cost?
The form itself is often free from your state REALTOR® association or listing service. Attorney review is the main cost; fees vary by state and by how much drafting is needed, so get a quote up front.
Closing costs are separate. Expect title insurance, recording fees, transfer taxes in many states and prorated property taxes. Our guide to who pays closing costs when selling explains the usual split.
Sellers who list with a Beycome flat fee MLS listing get state forms in their dashboard, an offer dashboard with e-signature, and the Artur AI assistant to help read offers. Basic is $99 with $0 at closing. In Florida and Texas, Beycome Title can close the sale.
What are the most common FSBO contract mistakes?
- Using a generic template that skips state notices.
- Leaving deadlines blank or vague.
- Letting the seller hold the deposit.
- Agreeing to repairs out loud but not in writing.
- Not listing every owner on the deed as a seller.
The paperwork list doesn’t stop at the contract. See the paperwork to sell your home without an agent.
Frequently asked questions
Who draws up the contract when selling by owner?
Usually the buyer or the buyer’s agent, on a state form. With no agents, either side can fill out the form, and many use a real estate attorney to draft or review it.
Can I write my own real estate contract?
Yes, but start from your state’s standard form. Custom wording is risky; have a real estate attorney review anything you change.
What makes a for sale by owner contract legally binding?
It must be in writing, name the parties and property, state the price and terms, and be signed by everyone on both sides. State rules can add requirements.
Who holds the earnest money in an FSBO sale?
A neutral escrow holder named in the contract, usually a title company or closing attorney. Never the seller directly.
Is an “as is” contract a good idea?
It limits repair promises, which helps sellers. It doesn’t always remove the duty to disclose known defects; that depends on your state.
Can I sign a home purchase contract online?
Usually, yes. Electronic signatures are common for purchase contracts. Check with your title company or attorney about the closing documents.
Prices as of October 2026. “$0 at closing” means no Beycome fee at closing; other closing costs, taxes, title charges and any agreed buyer-agent compensation still apply. Beycome Title operates in Florida and Texas today, and Michigan, Ohio, Illinois and Indiana starting November 1, 2026. Buyer credit: no upfront fee; Beycome keeps 1% of the price, minimum $1,599; if the commission offered is below that, the buyer covers the gap at closing; the lender must approve the credit. General information, not legal advice; contract and disclosure rules vary by state.
Sources
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