6 min read Jan 11, 2024

9 Things To Check In Your FSBO Contract in Montana

Reviewer
Reviewed By

Jared Andrew English

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Reviewer
Reviewed By

Jared Andrew English

Reviewer, Houzeo
About

Andrew excels in negotiating and closing more sales annually than most Realtors in their entire careers. He specializes in subdividing apartment communities and navigating million-dollar-plus property sales.

Find Jared Here

77% of FSBO sellers successfully sold their homes in 2022. However, 13% of them struggled to understand the paperwork and contracts involved in the sale.

FSBO sellers have to deal with multiple insurance papers, listing documents, and contracts. You may find all this paperwork overwhelming and impossible to DIY.

But you can do it! Sell FSBO in the Treasure State with Flat Fee companies like Houzeo. We provide contract-to-close assistance with our flat fee packages that can put you at ease.

What is a For Sale By Owner Contract?

A For Sale By Owner contract is the “purchase and sale agreement” of a home sale. The document covers terms and conditions such as contingencies, deadlines, and closing processes to facilitate a smooth sale.

Usually, the seller drafts the contract in an FSBO deal. But you can hire a professional to aid with the process. It seems complex and scary. But with assistance and tips, you can draw the agreement yourself.

To get an error-free contract, contact flat fee companies that give you customer support and contract guidance. Companies like Houzeo offer contract-to-close assistance with flat fee packages under $400.

    🎯 What is “For Sale By Owner”?

    FSBO or For Sale By Owner is the process of selling a property in Montana without the assistance of a listing agent. Often sellers take this route to save on agent commissions and may use a limited-service agent.

» For Sale By Owner Meaning: Read in-depth about the term “FSBO” to understand its meaning.

Common Contingencies in an FSBO Contract

Contingency clauses allow you to back out of a contract while you draft a contract. Some common contingencies you must know are:

  • Financing Contingency: This gives buyers time to secure financing and the option of getting their earnest money back.
  • Inspection Contingency: The buyer has the right to back out of the deal if the home inspector reports any serious problems.
  • Home Sale Contingency: If the buyer is unable to sell their current home within the specified timeframe, they can withdraw their offer.
  • Appraisal Contingency: The buyer can back out if the home is appraised for less than the purchase price.

Who Draws Up a Contract For Sale By Owner in Montana?

The seller draws up the contract in a For Sale By Owner sale. It is not as difficult as you may think. In fact, you can even draft a hand-written FSBO contract and get it approved by a professional.

  • Hire a Real Estate Attorney: They have the knowledge and experience to draft a real estate contract. They charge approximately $150 to $300 per hour.
  • Ask the Buyer’s Agent: If the home seller doesn’t have an agent, the buyer’s agent can help draft a contract.
  • Work With a Transactional Agent: A transactional agent can draft a contract and charge you for the service without representing you.
  • List With FSBO Websites: List your home and get contract-to-close assistance. Companies like Houzeo provide you with contract-to-close help.
    Which is the Best Way to Draft a FSBO Contract?

    List with FSBO Websites! With their MLS listing service, you also get contract assistance at a flat fee. You would have to pay other professionals more just for the contract.

9 Things to Verify in Your Montana FSBO Contract

To draft a Montana FSBO agreement, it must have a few essential things, which are as follows:

  1. Write a Clear Title: The contract’s title defines the document’s purpose. You may name it a ‘Purchase Contract’ or ‘Real Estate Sales Contract’.
  2. Provide the Names of Parties Involved: Write the legal names of buyers and sellers. Do not write initials or pet names on the document.
  3. Mention the Purchase Price: Write the final price agreed upon by you and the buyer.
  4. Set a Deadline: When do you want to sell the home? When do you want the buyer to complete their due diligence? Give yourself and the buyer a deadline to complete the sale quickly.
  5. Property Details: Include the location, size, and boundaries of the land according to the tax records. Do not give false information such as wrong square footage on MLS that may get you into trouble.
  6. Closing Costs: Verify that you have included the expenses such as commissions, taxes, inspection costs, and other costs that you and the buyer will incur during the transaction.
  7. Signature Block: You have to leave some space at the bottom of each page for all parties to sign the contract.
  8. Property Disclosures: Was your home built before the 1970s? Then make sure you submit “Lead-Based Paint Disclosure” with the contract. Include all other state-relevant disclosures to ensure a smooth process.
  9. Contingency Clauses: Check and ensure that none of the contingencies apply to you. If it does, you can back out of the contract.

Montana For Sale By Owner Agreement Sample

For Sale By Owner Contract Montana – Page 1

Montana FSBO Contract_page-0001

Source: Montana Freeforms.com

Ready to Draw the Montana FSBO Contract Yourself?

It may seem scary to draft a For Sale By Owner agreement yourself, but you can. The contract consists of a property description, purchase price, and other information that you can fill out on your own.

Verify 9 important elements in your contract and you are good to go. Flat fee companies like Houzeo help you from contract to close. In case, you want hands-on assistance from start to end, then there are other options. But remember that it will cost you more than a Flat Fee MLS company.

Take this opportunity to write your own Montana For Sale By Owner agreement.

» Paperwork for Selling a House Without a Realtor: Mandatory paperwork that FSBO sellers must know when selling their homes!

How Houzeo Helps FSBO Sellers

Houzeo provides flat fee packages that offer paperwork assistance. You may not get the FSBO agreement from Houzeo. But you can consult professionals at Houzeo to get help drafting the contract.

Houzeo has advanced tools like Intellilist Listing Management and a Mobile App. These tools help you monitor and manage your listing paperwork from the comfort of your home.

Reviews: America’s Best FSBO Websites

We’ve reviewed the best paid and free For Sale By Owner Websites in 2023

» Need More Clarity? Read these exclusive Houzeo reviews and learn why it is one of the best Flat Fee Multiple Listing Services in Montana.

Other Agreements You Should Know

Frequently Asked Questions About MT FSBO Contracts

How to write a for sale by owner contract in Montana?

You can write a for sale by owner contract by including details such as name of the parties involved, the address of the property, home price, and disclosures.

How does a for sale by owner contract work?

An FSBO contract works like the traditional "Real Estate Purchase Agreement". Only difference is that the seller draws the contract in a FSBO transaction. Here are a few steps to verify whether your contract covers vital points.

Who draws up contract in for sale by owner deal in Montana?

The seller draws the FSBO contract in the home by owner sale. However, the seller has the option of hiring other professionals who can do the job. Some of them are the buyer's agent or a real estate attorney.

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