If you’re selling your house by owner (FSBO) in Minnesota, it’s crucial to have a well-drafted contract that outlines the terms and conditions of the sale. A For Sale by Owner contract serves as a legally binding agreement between you, as the seller, and the buyer. Below are some considerations for creating a comprehensive and enforceable for sale by owner MN contract.
Consult with professionals
The responsibility of drafting the FSBO contract typically falls on the seller’s agent. However, there are alternative options available if you are unable to draft the contract yourself.
- Hire a real estate attorney. They can provide guidance and ensure your contract complies with all relevant laws and regulations. An attorney can also help protect your interests and minimize potential legal risks.
- You can also hire a limited-service listing agent who provides a reduced range of real estate services at a more affordable price. These agents typically handle specific aspects of the for sale by owner MN sales contract while you take on the majority of the sales process yourself.
- Alternatively, the buyer’s agent can assist with drafting the contract. This scenario (where the buyer’s agent also acts as a transactional agent) is commonly referred to as a “dual agent” arrangement.
If you decide to draft for sale by owner MN contract independently, you may consider utilizing an online real estate FSBO contract template as a reference and starting point. These templates can provide a framework to help you structure your own contract effectively, but they might not be comprehensive.
Include the following in the contract:
- Basic information – Start with the full legal names, addresses, and contact details of the seller and buyer. Provide a detailed description of the property, including the address, legal description, and any unique features.
- Purchase price and terms – Clearly state the agreed-upon purchase price and any additional terms related to it. Outline the payment schedule and include any applicable interest rates or penalties for late payments.
- Contingencies and disclosures – Address contingencies that must be met for the sale to proceed, such as home inspections, financing approval, and appraisal results.
- Closing and possession details – Specify the closing date and location for the transfer of ownership. Clarify who will cover the closing costs and be responsible for obtaining title insurance. Clearly state when the buyer will take possession of the property.
- Dispute resolution and governing law – Include provisions for resolving conflicts, such as mediation or arbitration. Specify that the laws of Minnesota will govern the contract and any legal disputes arising from it.
- Signatures and notarization – Ensure that both the seller and buyer sign the contract. Consider having the signatures notarized for added authenticity and enforceability.
Creating a comprehensive For Sale by Owner contract in Minnesota is an important step in the FSBO process. Because selling a home is a huge obligation, it’s best to consult with an FSBO agent to address any specific concerns or questions you may have.
