Essential Legal Documents You Need to Sell a Home FSBO
- J Franklin Lloyd
- 16 hours ago
- 4 min read
Selling your home For Sale By Owner (FSBO) can save you thousands in real estate commission fees, but it also means handling the legal paperwork yourself. Missing the right documents could delay your sale or lead to legal issues down the road.
To ensure a smooth, legal, and successful home sale, here’s a list of essential legal documents you’ll need when selling FSBO.
1. The Property Disclosure Statement 📝🏡
Most states require sellers to disclose any known issues with the home to protect buyers.
✅ Includes information on:✔ Structural problems (foundation, roof, etc.)✔ Water damage or leaks✔ Pest infestations✔ Electrical or plumbing issues✔ Environmental hazards (lead paint, asbestos, radon)
💡 Pro Tip: Even if your state doesn’t require disclosures, providing them builds buyer trust and can prevent legal disputes later.
2. The Purchase Agreement (Sales Contract) 🏠✍️
This is the most important legal document—it outlines the terms of the sale.
✅ Key details in a FSBO purchase contract:✔ Buyer & seller names✔ Property address✔ Purchase price & earnest money deposit✔ Contingencies (home inspection, financing, appraisal, etc.)✔ Closing date & possession date✔ Who pays for what closing costs
💡 Pro Tip: You can use a state-approved template or have an attorney draft a customized purchase agreement to protect your interests.
3. The Deed (Proof of Ownership) 📜🔑
A deed is the legal document that transfers ownership from you to the buyer.
Types of Deeds:
✔ General Warranty Deed – Guarantees you own the property free & clear✔ Quitclaim Deed – Transfers ownership but doesn’t guarantee clear title✔ Special Warranty Deed – Guarantees title only for the time you owned it
💡 Pro Tip: You’ll sign the deed at closing and give it to the buyer once payment is received. Your title company or attorney can prepare this for you.
4. The Title Report & Title Insurance 📜🏦
The title report proves you have legal ownership and checks for liens, disputes, or unpaid taxes.
Why Title Insurance is Important:
✔ Protects the buyer from hidden claims or title defects✔ Required by most mortgage lenders✔ Ensures a clean title transfer
💡 Pro Tip: Your title company will handle the title search and provide title insurance to the buyer.
5. The Bill of Sale 🛋️📄
A bill of sale lists any personal property included in the home sale (appliances, furniture, fixtures, etc.).
✅ What’s Included?
✔ Refrigerator, washer/dryer, stove, etc.✔ Light fixtures, ceiling fans✔ Window treatments, security systems
💡 Pro Tip: Be specific in your listing and contract to avoid misunderstandings about what stays with the home.
6. The Mortgage Payoff Statement 🏦💵
If you still owe on your mortgage, you’ll need a payoff statement from your lender.
✅ This document includes:✔ Remaining loan balance✔ Daily interest costs✔ Prepayment penalties (if any)
💡 Pro Tip: Request your payoff statement early to avoid delays at closing.
7. The Home Inspection Report (If Available) 🔍🏡
While buyers typically order their own inspection, providing a pre-listing inspection can:
✔ Speed up the sale by addressing issues upfront✔ Reduce buyer negotiations✔ Build trust with buyers
💡 Pro Tip: If you had a recent home inspection, share the report with buyers and highlight any repairs you made.
8. The Appraisal Report (If Needed) 📊🏠
An appraisal report helps justify your asking price to buyers and lenders.
✅ Why Get an Appraisal?✔ Helps set a competitive price✔ Useful if buyers need financing✔ Avoids low appraisal issues during escrow
💡 Pro Tip: Some buyers will request their own appraisal, but a pre-listing appraisal can strengthen your negotiations.
9. The HOA Documents (If Applicable) 🏘️📑
If your home is in a Homeowners Association (HOA), buyers will need:
✔ HOA bylaws & rules✔ HOA fee structure✔ Pending assessments or violations
💡 Pro Tip: Contact your HOA early to gather these documents and disclose all fees upfront to avoid surprises for the buyer.
10. The Closing Disclosure & Settlement Statement 🏦✅
The Closing Disclosure (CD) is required for buyers using a mortgage and outlines the final loan terms & closing costs.
✅ What’s in the Closing Statement?
✔ Final purchase price & loan terms✔ Breakdown of closing costs✔ Seller’s net proceeds (what you’ll walk away with)
💡 Pro Tip: The title company or attorney will prepare this document before closing. Review it carefully to ensure all numbers are correct!
📌 Bonus: Optional but Helpful FSBO Documents
📌 Pre-Approval Letter – Shows that the buyer is financially qualified📌 Lead-Based Paint Disclosure (Required for homes built before 1978)📌 Repair Receipts & Warranties – Helps show maintenance history📌 Rent Back Agreement – If you need to stay in the home after closing
🛠️ Need Help? Where to Get These Documents
✅ Title Company – Can handle deed, title report, closing documents✅ Real Estate Attorney – Helps review & prepare contracts✅ State Real Estate Commission – May provide FSBO contract templates✅ Online Legal Services – Websites like Rocket Lawyer or LegalZoom offer FSBO contracts
💡 Pro Tip: Even if selling FSBO, hiring a real estate attorney for a one-time contract review can prevent legal headaches.
💰 Final Thoughts: Sell FSBO Like a Pro!
Selling FSBO means handling paperwork yourself, but having the right documents ready will help you:
✔ Avoid legal issues✔ Speed up the closing process✔ Negotiate with confidence
💬 Thinking about selling FSBO? Need a checklist of all required documents? Let’s chat!
📢 Hashtags:#FSBO #HomeSelling #RealEstateTips #ForSaleByOwner
