Sample real estate sales contract

Our comments and suggestions for a fictional $100,000 home follow each numbered clause.

This is as easy as it gets.  Copy the legal description from your deed. If you can't find the legal description leave the space blank and write in the street and city address on the next line.  In most contracts you will also have to fill in your name and the name of the Buyer in this section.

Write in the selling price of your home then find out how much of a cash down payment the Buyer plans to make and how big a mortgage he will need. (In our example, the Buyer needed a $90,000 mortgage.)

• If your potential Buyer has been pre-approved for a big enough mortgage, you are all set.
• Do not enter into a contract unless your buyer has at least been pre-qualified for a mortgage big enough to purchase your home. 

The Buyer normally deposits at least $500 in "earnest money" or "binder" for a home under $80,000, and $1000 for one priced higher. A "binder fee" or "earnest money" is a deposit on the purchase price and insures that the potential Buyer is serious. The check is made out to the Seller but is held by a third party, usually the Buyer's real estate agent or the Seller's attorney, but it can be held by anyone stipulated by the Buyer and the Seller in an Escrow Agreement. Escrow Agreements are available at large office supply stores or in our For Sale by Owner Kit.

Most homes won't have "Other" special restrictions, easements or limitations.  If you do have a unique restriction, write it in the space provided.

The above is usually followed by a Roof Inspection, and Termite Inspection clause, each requiring the Seller to pay for the repair of any damages.

One way to avoid charges arising from inspections is to stipulate that the property is being sold "As Is."  This can be written in under Special Clauses.

Usually 30 to 45 days from signing of the contract, but can be set to coincide with your moving plans.

Write in the name of your town if you know that radon levels higher than federal standards have been found in buildings in your town, otherwise leave blank.

Anything written in under "Special Clauses" supersedes the printed provisions of the contract. As an example, we filled in a clause to sell the home "As Is." We don't usually suggest selling "As Is" because an "As Is" home will sell for less than a normal home.
Note:  See an attorney for legal advice. This web site is not intended to give legal advice.

This is what you want to avoid: By selling your home without a real estate broker, you can leave this section blank and save up to seven percent of the sales price, (or $7,000 in this example of a $100,000 house).

Where to get sales contracts:

• Under $10 at Office Depot, Office Max and other office supply stores. Ask for "Agreement to Sell Real Estate." (To be valid in all 50 states, these forms include clauses to handle regional issues like termite inspections, necessary in south-eastern states but not a concern in Alaska.)
• Free from your neighborhood real estate agent. (These tend to be more complex documents, loaded down with commission splits and mortgage details more helpful to an agent than to the Seller and Buyer.)
• Included in our For Sale by Owner Kit along with other forms and contracts needed to sell your home. You can download the kit to your computer or we can send it by email, or  pre-printed in a neat folder via the U.S. Post Office.

• In most states, the seller must provide a disclosure form, or check-off list where the seller indicates known problems with the property.
• Homes built prior to 1978 also require a Lead Based Paint Addendum where the Seller states that he has no knowledge or record of lead-based paint hazards on the property. 
• Standard disclosure forms and Lead Based Paint Addendums are included in the For Sale by Owner Kit which can be downloaded or emailed to your computer or mailed to your home.