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 inmaking 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 that you are aware of. It’s not always a necessity to get your home professionally inspected and scoured for problems that don’t even exist. Still, it’s a very important document, and you can seek professional guidance if this is the first time you are dealing with it. Real estate attorneys and agents can help you prepare the disclosure statement to make sure that it’s legally valid, and that you stay protected against unwanted lawsuits in the future. Depending on the state where the property is located, you are likely to fill out a standardized disclosure form. Disclosure laws vary greatly from one state to another. Some states have pretty stringent laws that require the seller to carry out an active inspection of the property to search for any kind of flaws that they might not have noticed, so be aware of your state’s regulations on this subject.
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