How to Draft a For Sale By Owner Contract in Louisiana (2025)

6 mins read Feb 11, 2025
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Anandita Chitnis

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Anandita Chitnis

Editor, Houzeo
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10% of sellers find it difficult to draft a real estate contract For Sale By Owner in Louisiana. The Louisiana legal nuances involved in Louisiana real estate transactions can be confusing and difficult to navigate.

But here’s a silver lining! High-tech FSBO websites in Louisiana, like Houzeo, provide automatic access to local MLS paperwork and state-specific seller disclosures. That’s not it! You get licensed broker assistance to review your FSBO paperwork too!

What Is a For Sale By Owner Contract?

A For Sale By Owner purchase agreement is a legally binding contract between a property owner and a buyer. It outlines the terms and conditions of your home sale which includes contingencies, deadlines, and the closing procedures.

Who Prepares ‘For Sale By Owner Contract’ in Louisiana?

You, as a seller, are responsible to draw up the purchase contract for selling a house by owner in Louisiana. You can hand-draft the FSBO real estate contract or Louisiana as is real estate contract and get it reviewed and approved from:

  • A Real Estate Attorney: They specialize in real estate contracts and charge approximately $150 to $500 per hour.
  • The Buyer Agent: They used to charge a 2% to 3% buyer agent commission. However, after the NAR Settlement, this fee is now negotiable.
  • A Transactional Agent: They will draft the contract but will not represent you in negotiations. Their service typically costs between $350 to $500 per transaction.

How to Create a FSBO Contract in Louisiana?

A well-drafted Louisiana residential sales contract protects both the buyer and seller in a real estate transaction. This guide will walk you through options and help you create a legally sound contract for your Louisiana property:

  1. Draft It Yourself: You have to be familiar with real estate laws to draft a For Sale By Owner contract yourself. A mistake or an oversight can lead to legal and financial issues.
  2. Hire a Real Estate Attorney: An attorney can address specific legal concerns and ensure the contract is accurate and error-free. However, their services can be expensive.
  3. Leverage Online FSBO Platforms: FSBO websites offer tools to create a legally compliant contract, without the need of an attorney. They automate most of your paperwork which minimizes the risk of mistakes and saves time.

What should be in Your Real Estate Contract for sale by owner?

Here are a few important clauses that should be included in your Louisiana FSBO contract to ensure your interests are protected:

1. Purchase Price and Closing Details

A simple Louisiana purchase and sale agreement must mention the purchase price, down payment, and closing date. Specify who will cover the closing costs or if they will be split between both parties. Also, include contingencies if the home sale conditions aren’t fulfilled.

2. Financial Details of the Deal

Specify if the buyer is paying in cash or opting for a loan to purchase the property. If it’s a mortgage, include the loan type, the earnest money deposit, and a timeframe for the buyer to secure the funds.

The FSBO Louisiana real estate purchase agreement should also include the option to return the buyer’s earnest money if the financing falls through. Also, mention the minimum transfer amount in case of a cash transaction.

3. Home Inspection Contingency

Include specific clauses to address significant issues discovered during home inspection and add a deadline for the inspection or repairs.

For major issues, identify dealbreakers that could lead to the termination of the sale. For minor problems, mention if the sale price can be renegotiated.

4. Deed for Title Transfer

A warranty deed is the most common way to transfer a property title. First verify the owner’s name in official land records via the county assessor’s office. For joint ownership, decide on the title structure. At the time of purchase, the deed can be modified to include or exclude certain names.

In your FSBO contract, include the timeline for the transfer of the title. Also, specify the title company and who will cover the title insurance cost in Louisiana.

5. Default Provisions

Clearly outline the consequences of contract breaches, including missed and delayed payments. Also, specify how you will handle these situations. In case a contingency is triggered, the contract should explicitly state your right to withdraw from the agreement without penalty.

6. Seller Disclosures

Attach all relevant Louisiana seller disclosure forms. They contain details like the ownership history, tax status, and any known home defects. Additionally, if your property was built before 1978, submit the “Lead-Based Paint Disclosure” (addendum) along with the contract.

3 Key Contingencies in a FSBO Contract in Louisiana

When creating a Louisiana real estate sale contract For Sale By Owner, consider including these contingencies:

  1. Subject to Finding Replacement Property Contingency: You can cancel the sale if you can’t find a new property within the specified timeframe (e.g., 30-60 days). Avoid the crisis of being pushed into a hasty purchase.
  2. Sale of Seller’s Current Home Contingency: You can withdraw from the sale within a specified period. This will protect you from overlapping mortgages or the financial burden of owning two properties.
  3. Appraisal Contingency: This contingency protects you if the buyer doesn’t appraise for the agreed-upon purchase price. The contract may require the buyer to cover the gap, allow renegotiation, or permit termination.
🚨 Beware: While these contingencies protect your interests, they may make your listing less attractive to potential buyers. Be sure to weigh the pros and cons carefully.

What Should You Clarify in Your FSBO Purchase Agreement?

When you review contingencies and clauses for selling a house in Louisiana, clearly outline the basic elements in your contract, such as:

  • Seller’s Name: Your name should match official records. If incorrect, the title company will not close on the property without an explanation.
  • Earnest Money Deposit: The final purchase price should include an earnest money deposit. This protects you in case the buyer backs out under the wire.
  • Closing Deadline: The deadline should include an exact closing date. Add dates for contingencies about financing and inspections as well.

Louisiana Real Estate For Sale By Owner Contract Template

Source: loc.gov

**Remember: While this blog covers key aspects of a purchase contract ‘For Sale By Owner’ in Louisiana, consulting a real estate attorney is highly recommended. This will ensure your Louisiana FSBO contract complies with all state regulations.

Ready to Draw Up Your FSBO real estate contract in Louisiana?

Even if you’re confident in your ability to create a For Sale By Owner contract that protects your interests, proceed carefully. This contract ensures legal clarity, minimizes risks, and complies with regulations. So, it’s crucial that it’s drafted accurately.

If you are still unsure about handling the paperwork for selling a house without a Realtor in Louisiana, sell with a FSBO website. They help you draft contracts, review offers, and ensure compliance with all legal requirements. So, what are you waiting for?

Frequently Asked Questions

How to write FSBO Louisiana real estate contracts?

To draft a For Sale By Owner real estate contract in Louisiana, you must include both party names, addresses, and the home's price. Also mention seller disclosures, selling timelines and financing options.

How does a FSBO Louisiana real estate purchase contract work?

A FSBO sale contract in Louisiana works like the traditional "Real Estate Purchase Agreement". The only difference is that the seller draws up the For Sale By Owner agreement instead of the agent. Once it's drafted, ensure that it's reviewed by a real estate attorney.

Who draws up the FSBO contract in Louisiana?

The seller draws up the For Sale By Owner real estate contract in Louisiana. However, the seller can hire other professionals like a Louisiana real estate attorney to ensure legal accuracy.