If you`re looking to buy a home in Ohio, you may have heard the term “FSBO” being thrown around. FSBO stands for “For Sale By Owner,” and it means that the owner is selling their property without the help of a real estate agent. This can potentially save the seller thousands of dollars in commission fees, and it can also give the buyer more negotiating power.

However, when you`re buying a home from an FSBO seller, it`s important to make sure that you have a solid purchase agreement in place. This agreement outlines the terms of the sale, protects both the buyer and the seller, and serves as the legal contract between the two parties. Here`s what you need to know about the FSBO purchase agreement in Ohio.

What is an FSBO Purchase Agreement?

An FSBO purchase agreement is a legal document that outlines the terms of the sale between the buyer and the seller. It includes information about the property being sold, the purchase price, any contingencies (such as inspections or financing), and the closing date. The purchase agreement is legally binding and serves as the contract between the two parties.

Why Do You Need an FSBO Purchase Agreement?

Whether you`re buying a property from an FSBO seller or from a real estate agent, having a purchase agreement in place is essential. Without a purchase agreement, you`re essentially relying on verbal agreements, which can be easily misunderstood or forgotten. A purchase agreement protects both the buyer and the seller by clearly outlining the terms of the sale.

In an FSBO transaction, there may be even more reason to have a purchase agreement. Since the seller is not represented by a real estate agent, they may not be as familiar with the legal requirements of a home sale. Having a purchase agreement in place can help ensure that all legal requirements are met and can prevent any misunderstandings or disputes down the line.

What Should Be Included in an FSBO Purchase Agreement?

When drafting an FSBO purchase agreement in Ohio, there are several key elements that should be included. These include:

– A description of the property being sold, including the address, lot number, and any other relevant details

– The purchase price, including any earnest money or deposit required

– A timeline for the transaction, including the closing date and any other deadlines for inspections or financing

– Any contingencies or conditions of the sale, such as a home inspection, appraisal, or financing

– A statement of the conditions of the property, including any known defects or issues

– The signatures of both the buyer and the seller

It`s important to note that the FSBO purchase agreement should be reviewed by a real estate attorney to ensure that it meets all legal requirements in Ohio.

In conclusion, an FSBO purchase agreement is a crucial document in the home buying process, particularly when purchasing from an FSBO seller. By clearly outlining the terms of the sale, an FSBO purchase agreement protects both the buyer and the seller and ensures that the transaction is legally binding. If you`re considering purchasing an FSBO property in Ohio, be sure to consult with a real estate attorney to ensure that your purchase agreement is thorough and legally sound.