# buying a place that is for sale by owner



## Pheasant283 (Mar 24, 2010)

I am looking at a place that is for sale by owner. They are selling it themselves and not hiring a realtor. She (the seller) told me that she was going to line up a lawyer for all of the paper work, and closing, ect.. So that got me thinking, should I hire my own lawyer, or a realtor buyers broker?


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## HOTW (Jul 3, 2007)

We bought out home 10 years ago as a FSBO and we hired our own lawyer who specialized in RE. He did catch a few things and we would not close until they were written properly. We made a mistake on our fist house signing something on the advise of the lawyer and got screwed in the long run so do not make that mistake!

It was a good experience and we hope to sell our home FSBO to keep as ,much money in out pocket as possible


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## ozarkchaz (Feb 4, 2005)

Buyers agents and Real Estate Brokers usually guide you through this process, for a fee, when hired. However, they are not allowed by law to give legal advice. This is one of those situations, where you may want to consider at least a flat fee consultation review of the contract by your own attorney.

Congratulations on finding your spot. All the best on your transaction!


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## simi-steading (Sep 27, 2012)

Yes, get your own RE lawyer...


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## Pheasant283 (Mar 24, 2010)

Thanks everyone. So yes I do plan on hiring a lawyer. Now since this is a FSBO property, once I make an offer and the seller agrees, the seller is responsible for having a purchase agreement drawn up, right?


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## ozarkchaz (Feb 4, 2005)

The seller or title company, will usually provide a purchase agreement (contract). 

I highly suggest using a reputable title company for the transaction. (Escrow, title search, and title insurance). There are fees for their services, but it's money well spent IMO. Often these fees are negotiated between buyer and seller as a 50/50 split.


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## arbutus (Jun 8, 2006)

We sold our place in Michigan last fall FSBO. I put it up on Craigslist and had an offer in four days. I called one of the local title offices and they emailed me their "FSBO Kit" which had a standard sales contract in it, along with the state approved seller's disclosure, lead paint disclosure, and a couple of other things. They also provided me with the list of taxes and fees we would be paying and whether each fee was customarily paid by the buyer or seller - recording fees, title insurance, title search, power of attorney (I was going to be signing for my wife).

The buyer and his wife sat down with me and my wife at my kitchen table and we filled the paperwork out together and I dropped it all off, along with the escrow check and the title search deposit at the title company the next morning.

The standard sales contract the title company provided was adequate for us.

Good luck.
J.


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## Joshie (Dec 8, 2008)

We purchased this place directly from the seller. I'd not buy a place that way again should I have a choice. The guy from whom we purchased this place said we could just use his lawyer. Ummm, not good! 

We hired a lawyer but, looking back, he was worth little. Since that time, we hired a different lawyer for something unrelated; I'd use that office again in a heartbeat. As we never got the remainder of our downpayment from him I'm pretty sure they're on retainer.

Anywho, make sure sale is contingent upon inspection, radon inspection, termite inspection, well and septic inspections, appraisal, and loan approval at minimum. Even if you're paying cash I would add these things to any offer. 

Inspections usually need to be completed within two days of the seller's acceptance of your offer.

We made a verbal offer for this place. The seller then sent us a contract. We had our lawyer go over it. Even though we'd agreed on price there were things we didn't agree with. I would not necessarily rely on the seller to provide the purchase agreement. Whatever you do, don't sign anything without having your lawyer going over the document with a fine toothed comb. Make sure you have several ways out (like the contingencies I listed above) in case of emergency. 

Your lawyer can probably refer you to a reputable title company. 

Good luck!


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## edcopp (Oct 9, 2004)

Pheasant283 said:


> Thanks everyone. So yes I do plan on hiring a lawyer. Now since this is a FSBO property, once I make an offer and the seller agrees, the seller is responsible for having a purchase agreement drawn up, right?


Once you make an offer and the seller agrees that is the purchase agreement.


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## Pheasant283 (Mar 24, 2010)

edcopp said:


> Once you make an offer and the seller agrees that is the purchase agreement.


Yeah thats true, but I will need something in writing to give to my banker so they can begin their process.


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## StL.Ed (Mar 6, 2011)

edcopp said:


> Once you make an offer and the seller agrees that is the purchase agreement.


I don't think this is quite true. I believe all real estate contracts need to be in writing to be to be considered binding agreements.

But I do agree with OzarkChaz who said, in part:



ozarkchaz said:


> I highly suggest using a reputable title company for the transaction. (Escrow, title search, and title insurance). There are fees for their services, but it's money well spent ...


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## Hoopjohn (Mar 8, 2013)

If you are financing your purchase, the rules set down by the lending agency will almost certainly be more stringent than the law requires. 
Inspections will be required. Banks do this so that they are protected and there risk is minimized.
For example: the bank will almost certainly want a test of the well water to make certain its good water.

There is nothing wrong with a "for sale by owner". In fact, it may be better than going through a realtor. Of course, it can also be worse.

Do your homework.


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## ozarkchaz (Feb 4, 2005)

> I will need something in writing to give to my banker so they can begin their process.


Once a price and terms are agreed upon, A Title Company can provide and assist with the required documents.


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## Pheasant283 (Mar 24, 2010)

Well, made an offer on the place I was looking at & after a little haggling we agreed on a price. So now just waiting for title co. / lawyer to get purchase agreement put together.


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## ChristieAcres (Apr 11, 2009)

Real Estate Offers should be in writing to begin with, which is essentially a Purchase Agreement if all parties agree, in writing. If they are consulting an Attorney, I would also consult one. 

As a Managing Broker in Real Estate, I wouldn't hesitate to write up an Offer for my Buyers for FSBO properties. However, not after a Contract has been written up by the Sellers. That is when I recommend Buyers seek a Real Estate Attorney! Writing up an Offer is done on WA State Purchase and Sale Agreements and accompanying approved Addenda. Yes, these are fill in the blank types of forms to insure conformity. That conformity is important as it is supposed to represent adherence to WA State Real Estate Law and are written by Real Estate Attorneys (approved by WA State). 

I would never recommend a Buyer rely on the Seller to have the Contract written up. You have lost your negotiation advantage. Then, I feel it is critical to have that Contract reviewed by your own Real Estate Attorney, to insure you are protected in every legal sense.


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## Evons hubby (Oct 3, 2005)

lorichristie said:


> Real Estate Offers should be in writing to begin with, which is essentially a Purchase Agreement if all parties agree, in writing. If they are consulting an Attorney, I would also consult one.
> 
> *As a Managing Broker in Real Estate, I wouldn't hesitate to write up an Offer for my Buyers for FSBO properties.* However, not after a Contract has been written up by the Sellers. That is when I recommend Buyers seek a Real Estate Attorney!
> 
> I would never recommend a Buyer rely on the Seller to have the Contract written up. You have lost your negotiation advantage. Then, I feel it is critical to have that Contract reviewed by your own Real Estate Attorney, to insure you are protected in every legal sense.


Unless you use a standard "fill in the blanks" type contract that has been pre-approved by the real estate commissions legal beagles... in our state that could cost you your license. In my state only the buyer, or seller or an attorney can write up a contract or give anything remotely considered as being legal advise. Something about practicing law without a license. I am with you though... I would recommend having ones own attorney go over any contract before signing it... whether it was drawn up by the sellers attorney or one of the pre-approved contracts filled in by a realtor.


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## ChristieAcres (Apr 11, 2009)

Yvonne's hubby said:


> Unless you use a standard "fill in the blanks" type contract that has been pre-approved by the real estate commissions legal beagles... in our state that could cost you your license. In my state only the buyer, or seller or an attorney can write up a contract or give anything remotely considered as being legal advise. Something about practicing law without a license. I am with you though... I would recommend having ones own attorney go over any contract before signing it... whether it was drawn up by the sellers attorney or one of the pre-approved contracts filled in by a realtor.


Writing up an Offer, constitutes using WA State Purchase & Sale Agreement and all WA State Approved Addenda. I should have been more specific. If a Real Estate Attorney writes up a Contract, the responsibility lies with him.

If WA State Contracts are used, we can't change them. Either they are used or other Contracts can be used by Sellers. We ourselves as licensed Brokers cannot use any Contracts but the ones approved by the WA State /Real Estate Board (all the forms are written by WA Licensed Real Estate Attorneys). 

In some States, Attorneys are required in Real Estate transactions. That isn't required here. However, I think it benefits both parties to have any documents reviewed, but critically if Sellers are just writing their own. When Sellers write the Contracts or have Real Estate Attorneys write them up, usually the Contracts benefit the Seller. That is why the Buyer would be wise to have that Contract reviewed by a Real Estate Attorney.

I'll add the point I was making is that I have and will present Offers to Sellers of FSBO properties (using WA State approved Contracts & Addenda)


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