Description of how the amount is to be paid —The contract must also mention the terms of payment in detail. In some cases, it is necessary for the buyer to obtain financing to afford purchasing the house. In this case, the full purchase amount will be paid to the seller at the time of closing. However, at other times, the purchase amount can be paid in timely installments if the seller agrees. The contract must clearly describe these terms of payment in full detail. Details of the earnest money—The FSBO contract should also state the amount of earnest money (money paid to confirm a contract) that the buyer will pay to the seller. You must be careful to include all the details, such as the amount of earnest money, the date on which the earnest money is supposed to be paid, and the agency (escrow or any other trust) that will hold the money until the sale is complete. Agreements regarding the payment of property taxes — If you have reached any agreement regarding the payment of property taxes with your buyer, the terms of the agreement must be stated clearly in the contract. Usually, sellers pay the property taxes until the date of closing of the sale. Thereafter, the responsibility passes on to the buyer.
STAGE 3: PREPARING THE DISCLOSURE STATEMENT
Preparing the disclosure statement is a very important part of the selling process. A disclosure statement is where you, as the seller, must disclose all issues or problems pertaining to the property to the best of your knowledge. Preparing the disclosure statement is critical, as it can go a long way in making or breaking a deal. Withholding issues and concealing defects such as leaky pipes or flooding issues is considered illegal. However, there’s no reason to lose sleep over this. You are only required to disclose issues
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