For sale by owner contract: what goes in it and who writes it
A for sale by owner contract is the same kind of purchase agreement any Florida home sale uses, with one difference: no listing agent is reading it on your behalf. That makes the document more important to you, not less. This page explains who usually writes the contract on an owner sale, which forms most Florida sales start from, the clauses that move real money, and where a Florida real estate attorney earns their fee. It is general information from a brokerage, not legal advice, and your own contract is the document that governs.
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Who draws up the contract in a for sale by owner sale
On most owner sales, the seller does not write the for sale by owner contract at all. The buyer's agent does. When a buyer is represented, their agent fills in a standard form with the buyer's offer and sends it to you. That draft is the buyer's opening position, written by the buyer's representative.
That is normal, and it is not a trick. It does mean every blank in that first draft was filled in with the buyer's interests in mind. The price, the deposit, the inspection period, the closing date and the financing terms are all proposals. You can accept them, change them or counter.
When the buyer has no agent, someone still has to prepare the document. Usually that is a Florida real estate attorney hired by one side or both. Sometimes the title company that will handle the closing can point the parties to a standard form, though a title company will not advise you on what the terms should be.
An owner can also hire their own attorney to prepare the contract from the start. That costs more up front. In return, the first draft reflects your terms rather than the buyer's, which matters most when the sale has anything unusual about it.
What an owner should not do is copy a generic contract from a website and fill it in at the kitchen table. Real estate contracts are state specific. A form written for another state, or an old version of a Florida form, can leave out terms Florida practice expects or include ones that do not fit.
Read next: the complete guide to selling by owner · what an attorney does versus an agent
The Florida contract forms most sales use
Most Florida residential resales run on contract forms produced jointly by Florida Realtors and The Florida Bar. There are two main versions. One is the standard residential contract. The other is the AS IS residential contract. Both are revised from time to time, so the date printed on the form matters.
Because agents, attorneys, lenders and title companies all work with these forms every day, using one makes the rest of the sale easier. The closing agent knows where to find the deposit terms. The lender knows where the financing section is. Nobody has to interpret a homemade layout.
Owners usually end up working with one of these forms in one of three ways. The buyer's agent presents it as the offer. An attorney prepares it for an unrepresented buyer and seller. Or the title company handling the closing helps the parties get a current version in front of them.
How the forms may be copied, shared or distributed is set by the organizations that publish them. Rather than pulling a copy of unknown age from a search result, ask the attorney or closing agent you are working with which current version applies and how to get it.
A standard form is only the starting point of a for sale by owner contract. Every blank you fill in, every box you check and every addendum you attach is a term of your deal. Two contracts on the same form can produce very different outcomes for the seller.
Read next: what each Florida contract provision does · a walk through the Florida purchase agreement
Clauses an owner has to understand in a for sale by owner contract
Start with the basics of any for sale by owner contract, because errors here are surprisingly common. The names of every owner on title should appear as sellers. The property needs its full legal description, not just a street address. The price and the way it will be paid should be stated clearly.
Next, look at what is included in the sale. Appliances, window treatments, a generator, pool equipment or hurricane shutters can all be argued about later if the contract is vague. Anything you plan to take with you should be excluded in writing.
The closing date and the possession terms tell you when you must be out. If you need to stay after closing, that has to be negotiated and written into the contract or an addendum. It is not something a seller can assume.
The title section explains what kind of title you must deliver and how title defects are handled. The survey section explains who orders a survey and what happens if it shows a problem. Both matter more on older South Florida properties with additions, fences or pools.
Default and dispute terms explain what happens if either side fails to perform. Read them as a seller, because the contract binds you too. If you change your mind after signing, the consequences come from these sections, and an attorney is the person to ask about them before you act.
Finally, check how the contract treats assignment. Some forms let the buyer assign the contract to someone else, which is how some investors resell contracts. If you want to know exactly who is buying your home, that box matters.
Read next: comparing offers term by term
Deposits, deadlines and contingencies in a for sale by owner contract
The escrow deposit shows how committed the buyer is. The contract states how much it is, when it is due, who holds it and when it stops being refundable. Larger deposits, delivered sooner, generally mean a more serious buyer.
The deposit should be held by a neutral escrow agent, normally the title company or an attorney. An owner should not hold the buyer's deposit personally. A neutral holder protects both sides and keeps the money out of any argument about who gets it.
Every period in a for sale by owner contract is a blank the parties fill in. The inspection period, the financing period, the deposit deadlines and the closing date are negotiated, not set by law. That is why this page gives no day counts. Read your own contract and put every date in a calendar the day it is signed.
Contingencies are the buyer's exits. A financing contingency lets the buyer cancel if the loan does not come through on the agreed terms. An appraisal term decides what happens if the lender values the home below the price. An inspection period lets the buyer investigate and, on most forms, cancel within the window.
Each contingency shifts risk between you and the buyer. A short inspection period and a strong deposit favor the seller. A long financing period and a broad appraisal exit favor the buyer. None of that is good or bad by itself, but you should know which way each blank leans before you sign.
Read next: when a Florida contract can be cancelled
As-is contracts and the inspection period
The AS IS version of the Florida form is very common, and owners selling themselves often prefer it. In general terms, it means the seller is not agreeing in advance to make repairs. The buyer usually keeps the right to inspect and to cancel during the inspection period.
As-is does not remove the seller's disclosure duty. Under Johnson v. Davis, a Florida seller must disclose known facts that materially affect the value of the property and are not readily observable to the buyer. That duty applies to owner sales exactly as it does to listed ones.
The standard version works differently. It generally includes repair obligations up to limits the parties fill in. If repairs exceed those limits, the form sets out what happens next. Owners who choose the standard form should understand that they are taking on repair exposure.
Either way, the inspection period is where most renegotiation happens. A buyer may ask for a price reduction, a credit or repairs after their inspector reports. On an as-is for sale by owner contract you can say no, and the buyer can then decide whether to proceed or cancel within the window.
In South Florida, buyers use the inspection period for more than the home inspection. Insurance quotes, roof age, wind mitigation features and flood zone all affect what a buyer can afford. Expect questions on those, and have your records ready.
Read next: handling repair requests after inspection
Riders, addenda and the notices inside the form
Riders and addenda attach to the main form of a for sale by owner contract and change it. They are part of the contract, they are often skimmed, and many carry their own deadlines. An owner should read each one as carefully as the main form.
If the home is in a condominium or a homeowners association, a rider usually covers association documents, approvals and fees. In South Florida many associations must approve a buyer before closing. The rider and the association's own rules decide how that process fits into the contract timeline.
Homes built before 1978 need the federal lead-based paint disclosure, which is usually handled through its own addendum. Other addenda can cover a sale contingent on the buyer selling their home, a seller's need to find a new home, post-closing occupancy or seller financing.
The standard Florida forms also carry notices that state law expects buyers to see, such as information about radon gas and about how property taxes may change after a sale. Those notices are one more reason a current Florida form is safer than a generic template.
Florida also now requires a separate flood disclosure from residential sellers, given at or before the time the contract is signed. It is not a clause in the contract itself, but it has to be ready before you sign one.
Read next: the full list of documents an owner prepares
Land contracts and owner financing contracts
Some owners search for a for sale by owner land contract because they want to sell to a buyer who cannot get a bank loan. The phrase covers two different structures, and the difference matters a great deal.
In a land contract, often called an agreement for deed or contract for deed, the buyer moves in and pays the seller over time, but the seller keeps legal title until the price is paid. It sounds simple. In practice it can be one of the riskier ways to sell.
Florida courts have often treated these agreements much like mortgages. That can mean a seller whose buyer stops paying faces a foreclosure process rather than a quick way to take the property back. The buyer also carries risk, because liens against the seller can attach to a property the buyer has been paying for.
The more common owner financing structure deeds the property to the buyer at closing. The buyer signs a promissory note to the seller, secured by a mortgage the seller holds. The seller becomes the lender, and the closing runs through a title company or attorney like any other sale.
Owner financing raises its own questions. Federal and state lending rules can apply to sellers who finance homes, depending on the terms and how often they do it. An existing mortgage on the property may have a due-on-sale clause. Florida also taxes recorded notes and mortgages, which the closing agent calculates.
If you are considering either structure, an attorney should draft or review the documents. This is not a place for a form found online, because the contract is only one part of a financing arrangement that may last for years.
Read next: seller financing in Florida, explained · how owner financing works
Buyer-agent commission agreements on an owner sale
Since the 2024 NAR settlement changes, buyer-agent compensation is no longer offered through the MLS. Buyers sign written agreements with their own agents, and those agreements say what the agent is paid. On an owner sale, the question of who pays that agent arrives directly at you.
You do not have to contribute. You may choose to, because a buyer who must pay their agent out of pocket has less cash for the purchase. Commissions are negotiable, and so is whether you contribute at all. Either answer is legitimate.
If you agree to pay something, put it in writing. A for sale by owner commission agreement should state the amount or percentage, that it is paid only if the sale closes, and that it is paid through the closing agent from your proceeds. Vague promises in emails cause arguments at the closing table.
Many agents will present this as a request in the offer itself or as a separate written agreement. Read it as carefully as the contract. Paying part of a buyer's agent fee does not make that agent your representative. They still work for the buyer.
If a buyer's agent asks you to sign a document you do not understand, it is reasonable to have your attorney read it first. It is also reasonable to treat compensation as one term among many, traded against price, deposit and closing date.
Read next: how buyer agent pay works now
Writing your own for sale by owner contract: the risks
Some owners, often selling to a relative, a tenant or a neighbor, want to write the contract themselves. That is understandable. The buyer is known, the price is agreed and a professional contract feels like overkill.
The trouble is that a for sale by owner contract does more than record a price. It decides who pays which closing costs, what happens if the house is damaged before closing, how title problems are handled, what the buyer can inspect and what happens if someone backs out. A short homemade agreement usually leaves most of that unanswered.
Missing terms do not disappear. They turn into arguments later, often when the sale is under pressure. A storm before closing, a lien found in the title search or a lender asking for a document nobody planned for can all stall a deal that was friendly at the start.
If you draft or edit any part of the contract yourself, have a Florida real estate attorney review it before anyone signs. That includes handwritten changes to a standard form. Small edits can change how other clauses work.
A sale between people who trust each other is still a legal transfer of a valuable asset. A clear contract protects that relationship, because it settles questions before they become personal.
When to pay an attorney to review the for sale by owner contract
For most owners, a contract review is the single most useful piece of professional help in the sale. It usually costs far less than the listing side of a commission, and it is cheapest before you sign. A review after signing is a report on what you agreed, not a protection.
An attorney matters most when the property or the deal has a complication. That includes an estate or probate sale, a divorce, more than one owner, a tenant in place, a title issue, an unpermitted addition, seller financing or a buyer who wants unusual terms.
An attorney is also worth calling when the buyer is unrepresented. In that case nobody on either side is a professional who handles these forms every week, and mistakes in the blanks are more likely.
Ask the attorney what they will do and what it will cost before they start. Some review a contract the buyer's agent prepared. Some prepare the contract themselves. Some also act as the closing agent, which can combine the contract work and the closing in one office.
If you are unsure whether you need one, describe the sale and ask. A good Florida real estate attorney will tell you if your situation is routine, and the conversation itself is useful.
Read next: choosing who closes an owner sale
From signed contract to closing
Once both parties sign and the acceptance is delivered, the clock starts. The effective date is defined in the form itself, so read that definition rather than guessing. Most other deadlines count from it.
Send the signed for sale by owner contract to the closing agent promptly. They open the file, confirm the deposit, order the title search and begin collecting what the closing needs. The sooner they have it, the sooner any problem surfaces.
Through the contract period, your main job is responsiveness. Give access for inspections and appraisals as the contract requires. Answer document requests quickly. Keep the property in the condition the contract calls for.
If the buyer asks to change terms after inspection or appraisal, any agreement should be in a written amendment signed by both sides. Verbal changes are a common source of confusion at closing.
Contract terms often differ by state, so owners selling outside Florida should use that state's forms and local counsel. The process described here is Florida practice.
Read next: the step-by-step owner sale guide · how owner sales differ between states
Keep control and still get on the MLS
A flat fee MLS listing puts your home where buyer agents search while you keep running the sale. Add only the help you want: pricing, contract coordination or negotiation.
These pages explain how selling by owner works, with Florida specifics where they matter. They are not legal, tax or financial advice. For a contract, a title issue or an estate, speak to a Florida real estate attorney; for tax, speak to an accountant. We are glad to introduce you to either, and a home valuation costs nothing in the meantime.
Frequently Asked Questions
- Who draws up the contract in a for sale by owner sale?
- Usually the buyer's agent, who fills in a standard Florida form with the buyer's offer and sends it to the seller. When the buyer has no agent, a Florida real estate attorney normally prepares it, sometimes working with the title company that will close the sale. An owner can also hire their own attorney to write the first draft, which puts the seller's terms on the page from the start.
- Is there a standard real estate contract for sale by owner in Florida?
- Most Florida sales use the residential contract forms produced by Florida Realtors and The Florida Bar, in a standard version and an AS IS version. They are the same forms used on listed sales. Nothing about selling by owner calls for a different contract. What changes is that you, rather than a listing agent, are responsible for understanding every blank and checkbox before you sign.
- Can I write my own contract to sell my house by owner?
- You can, but it is risky. A homemade contract usually leaves out terms about title problems, closing costs, inspections, damage before closing and default, and those gaps tend to surface when the sale is under pressure. If you draft or edit any part of a contract yourself, have a Florida real estate attorney review it before anyone signs.
- What is a for sale by owner land contract?
- It usually means an agreement for deed, where the buyer pays the seller over time and the seller keeps title until the price is paid. It can carry real risk for both sides, and Florida courts have often treated these agreements much like mortgages. A note and mortgage held by the seller is the more common owner financing structure. Either way, have an attorney draft or review the documents.
- Do I need a commission agreement with the buyer's agent?
- Only if you agree to pay part of the buyer's agent compensation. If you do, put it in writing: the amount or percentage, that it is paid only if the sale closes, and that it comes through the closing agent. Paying part of their fee does not make that agent your representative. They still work for the buyer.
- Who holds the deposit on a for sale by owner sale?
- A neutral escrow agent, normally the title company or the attorney closing the sale. The for sale by owner contract names the holder, the amount and the deadline. An owner should not hold the buyer's deposit personally. A neutral holder protects both sides and follows the contract's instructions on releasing the money.
- How much does an attorney contract review cost?
- It varies by attorney, by area and by how much work the contract needs, so ask for a quote before they begin. A review of a standard form costs less than drafting a custom agreement. For most owners the cost is small next to the listing side of a commission, and it is most valuable before you sign rather than after.
- Is a Virginia for sale by owner contract the same as a Florida one?
- No. Each state has its own contract forms, disclosure rules and closing customs. A Virginia for sale by owner contract follows Virginia law and practice, and a Florida sale should use a current Florida form. If you own property in another state, use that state's forms and talk to a local attorney there.
More FSBO Guides
Paperwork for selling a house by owner: the full checklist
Every document an owner needs, from disclosures and the contract to the deed and settlement statement, and who prepares each.
Using a title company or attorney on a for sale by owner sale
What a title company or attorney does when you sell by owner: title search, escrow, closing steps and who pays.
How to sell a house by owner, step by step
The nine steps of an owner sale, from pricing on sold comps to closing with a title company or attorney.
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