Who Prepares the Contract in a For Sale By Owner Listing?

Most homeowners who choose to sell their property without an agent hit a moment where things suddenly feel more serious. The photos are done, the calls are coming in, the conversations with buyers seem straightforward, and then someone asks, “Who’s preparing the purchase contract?” It’s the part of a For Sale By Owner sale that catches people off guard. Many assume there’s a universal template or that the buyer’s agent handles it automatically. But understanding who prepares the contract in a For Sale By Owner listing shapes the entire transaction. Once you know your options, the rest of the process becomes much easier to manage with confidence.

What a Purchase and Sale Agreement Actually Covers

A lot of FSBO sellers picture a contract as a single-page document with signatures. In reality, it’s a comprehensive legal agreement outlining every term of the deal. Real estate agents typically use state-approved forms developed by Realtor associations or legal teams. FSBO sellers, on the other hand, must choose how to create this structure themselves.

A proper purchase agreement usually includes:

• Purchase price, earnest money, and escrow details
• Closing date and possession terms
• Inspection, appraisal, and financing contingencies
• Repairs or credits that may be negotiated
• Items included or excluded from the sale
• Required federal disclosures (such as lead-based paint)

Federally required disclosures can be found through trusted agencies like:

• HUD
• EPA lead-based paint disclosure rules
• Consumer Financial Protection Bureau (CFPB)

A well-written contract protects both sides. A vague or incomplete one can lead to disputes, delays, or buyers backing out unexpectedly.

Can a FSBO Seller Prepare Their Own Contract?

Technically yes, but only if you have a strong understanding of real estate law and your state’s contract requirements. Even in states with standardized forms available to the public, those forms still need to be customized properly. A contract missing key deadlines, disclosures, or contingency language can unintentionally give the buyer the right to cancel, demand repairs, or pursue legal claims later.

Many sellers pull templates from the internet. The problem is that many templates are outdated, not compliant with state laws, or missing critical sections. FSBO contracts aren’t just about filling in blanks. They require careful wording, clear timelines, accurate disclosures, and alignment with state statutes.

Think of the contract as the blueprint for the sale. If the blueprint is weak, the structure built on it will be shaky.

Do Buyers Ever Prepare the Contract?

Often they do — especially if the buyer is represented by an agent. In those cases, the buyer’s agent typically drafts the initial offer using a state-approved contract form. This sounds convenient for FSBO sellers, but it’s important to remember that the buyer’s agent represents the buyer’s best interests, not yours.

That means:

• The terms will usually favor the buyer
• Timelines may be tight and disadvantage the seller
• Inspection or financing clauses may be written broadly
• Earnest money protections may lean toward the buyer

A buyer-agent-prepared contract can absolutely be used — but it should always be reviewed by someone protecting your side. Buyers are allowed to prepare contracts; sellers are allowed to negotiate them. No FSBO seller should sign paperwork without understanding exactly what they’re agreeing to.

Why Many FSBO Sellers Hire a Real Estate Attorney

Hiring a real estate attorney is the most reliable option in a For Sale By Owner transaction. Real estate attorneys are trained to draft contracts, identify legal risks, clarify deadlines, and ensure compliance with federal and state disclosure laws. In some states, attorneys are even required for real estate closings.

A real estate attorney typically handles:

• Drafting the purchase agreement
• Modifying buyer-proposed terms
• Ensuring required disclosures are included
• Reviewing title, escrow, and financing conditions
• Explaining contract language in plain, simple terms
• Negotiating inspection or repair requests

Attorney fees vary, but they often cost far less than the money you risk losing from a poorly structured contract. For FSBO sellers who want the autonomy of selling on their own without navigating the legal complexity alone, this is the most balanced path.

Flat-Fee Brokers and Contract Assistance Services

Some FSBO sellers choose a middle-ground option: using a flat-fee MLS service or limited-service broker. These companies offer access to standardized contracts and legal forms without requiring you to hire a full listing agent. You stay in control of showings, pricing, and negotiations while getting help with paperwork.

These services commonly provide:

• State-approved contract forms
• Offer and counteroffer templates
• Guidance on disclosure requirements
• A broker who answers contract-related questions

This approach is ideal for sellers who want structure but prefer not to pay traditional commission rates. Just keep in mind that standardized forms don’t address the nuances of every situation. Most sellers still benefit from a legal review before signing anything.

Common Contract Mistakes FSBO Sellers Make

Even confident homeowners miss important details when writing or reviewing contracts. These mistakes often reveal themselves only when the buyer requests repairs, financing delays occur, or deadlines are missed.

The most frequent FSBO contract errors include:

• Vague or missing contingency deadlines
• No clarity about earnest money refunds
• Accepting inspection terms that overly favor the buyer
• Not specifying what stays with the home
• Accidentally violating disclosure laws
• Using outdated or non-compliant templates

These aren’t small errors. Some can give buyers the ability to cancel at the last minute, demand large credits, or create legal exposure for the seller.

Clear language prevents issues. Precise deadlines prevent miscommunication. Good documentation prevents disputes. The smoother the contract, the smoother the closing.

What Happens After the Contract Is Signed?

Signing the purchase agreement may feel like the finish line, but it’s really the starting point. Once the contract is finalized, a series of time-sensitive events begin.

These typically include:

• Earnest money deposit
• Home inspection and negotiations
• Buyer securing mortgage approval
• Appraisal on behalf of the lender
• Repair agreements or credits
• Title search and escrow coordination

FSBO sellers are responsible for managing all of this, and timelines can be strict. Lenders follow guidelines from sources like the CFPB and HUD, which impact closing schedules. If deadlines aren’t monitored carefully, the deal can fall apart.

This is where a good attorney or closing professional becomes invaluable. They keep everything on track so you can focus on the move rather than chasing paperwork.

When FSBO Sellers Decide the Contract Process Is Too Complicated

Selling your home by owner can feel empowering, especially during showings and negotiations. But once contracts, legal requirements, and deadlines enter the picture, some sellers realize they’re juggling more than they expected. It’s not unusual for FSBO sellers to get overwhelmed by:

• Contract drafting
• Inspection negotiations
• Disclosure obligations
• Financing-related delays
• Repair requests
• Tight deadlines

When the buyer pool is limited, when the home needs repairs, or when the process feels stressful, some sellers prefer a simpler, direct alternative: selling to a reputable cash home buyer.

Cash buyers eliminate the need for complex contracts, bank timelines, appraisal contingencies, or inspections that drag on.

Final Thoughts

Once you understand who prepares the contract in a For Sale By Owner listing, the entire FSBO process becomes far clearer. You can draft it yourself, use a buyer’s agent’s form, hire a real estate attorney, or rely on a flat-fee service. There’s no single right choice — just the choice that best protects you and reflects your comfort level.

If the contract stage feels overwhelming, or if you want a simpler sale without inspections, negotiations, or buyer financing delays, Pavel Buys Houses can help. As a nationwide cash home buyer, we purchase properties in any condition and simplify the entire closing process. When you’re ready to skip the paperwork burden and sell your home fast, having a trusted cash buyer can make the transition surprisingly easy.

Pavel Khaykin

Pavel Khaykin is the founder and author of Pavel Buys Houses, a nationwide home buying company that helps homeowners sell their properties quickly for cash. With a strong background in real estate and digital marketing, Pavel has been featured in The New York Times, ABC News, and The Huffington Post. His mission is to make the home-selling process simple, transparent, and trustworthy for every homeowner he works with.