For Sale By Owner

[shawnusa]

What is the name of your state (only U.S. law)? Mass

I am going to sell my house by myself.


1. Can I use the standard P&S and make one for the buyer to sign?

2. Do I need to provide the title of the house to the buyer? I know I need to provide a title 5 for the septic system in Mass.

3. Do I need to hire a lawyer?


I thought if we agree on the price and sign a P&S, then the buyer’s bank should schedule a closing date and give the check to me. Please correct me if I am wrong and let me know what I need to do.

Thanks!

 

[FlyingRon]

If you have to ask these questions, one might suggest that you really do need the assistance of a broker, or perhaps an attorney.

Typically it is he buyer who presents the purchase agreement as his offer. Yes you can use a fill in the blanks one if you understand it. Frankly if you don't understand it you need to run it to a lawyer before it becomes binding.

Real estate doesn't have a title like a car. You will have to deed the house over to the buyer when you get the funds. However, banks won't issue funds to buyers typically unless they have the title. See the catch 22 here. YOU CAN'T DO THIS YOURSELF. Again, the buyer usually has the right to chose who handles the settlement (a lawyer, title company, escrow company) who takes all the documents (your executed deed, the money, etc...) into trust and executes everything together to make all the players happy.

Yes, there's usually several things: septic inspections, termite inspections, various disclosures that need to be done in the process.

If you sit there fat, dumb, and happy the buyer's bank likely won't close when you don't provide them all the things they need.

 

[justalayman]

Yes, you are wrong.

1. Can I use the standard P&S and make one for the buyer to sign?

you can purchase sales agreements. You cannot simply copy one that is covered under copyrights and use that. You can make your own but make sure it complies with any applicable laws of your state.

2. Do I need to provide the title of the house to the buyer? I know I need to provide a title 5 for the septic system in Mass.

unless you are talking about a mobile home, there is no "title" such that you can hold it. Title is an intangible item. You use a deed to transfer your interest in the property to the buyer.

3. Do I need to hire a lawyer?

I would suggest you should. Given the questions you are asking, you are not familiar enough with the proper process to take this on yourself.

then the buyer’s bank should schedule a closing date and give the check to me.

not that simple. The buyers bank might handle the closing. You would have to check with them. I generally utilize the services of a title company. They create the deeds for me. They handle the financial transfers (which there could be several), and they take care of recording the deeds for me. Of course, it all comes at a price. Nothing is free.

along with the simple act of you receiving money, there are property taxes to be concerned with. You would owe them up to the day of closing. After that, the buyer owes them. Part of closing often includes the calculation of the taxes for each party and a check being issued to pay your share, if there is any. There are also generally recording fees required to be paid the recorders office.

If there are any liens on the property, they have to be dealt with as well.

I'm sure I'm missing something along the way as well.



This isn't rocket science but if you screw something up, it can be very difficult to correct. It's best to use the services of somebody in the industry so there are no screw ups.

 

[shawnusa]

If you have to ask these questions, one might suggest that you really do need the assistance of a broker, or perhaps an attorney.

Typically it is he buyer who presents the purchase agreement as his offer. Yes you can use a fill in the blanks one if you understand it. Frankly if you don't understand it you need to run it to a lawyer before it becomes binding.

Real estate doesn't have a title like a car. You will have to deed the house over to the buyer when you get the funds. However, banks won't issue funds to buyers typically unless they have the title. See the catch 22 here. YOU CAN'T DO THIS YOURSELF. Again, the buyer usually has the right to chose who handles the settlement (a lawyer, title company, escrow company) who takes all the documents (your executed deed, the money, etc...) into trust and executes everything together to make all the players happy.

Yes, there's usually several things: septic inspections, termite inspections, various disclosures that need to be done in the process.

If you sit there fat, dumb, and happy the buyer's bank likely won't close when you don't provide them all the things they need.

Thank you so much for your quick reply.

The buyer is someone that I know. We both agree not using the realtor, so they can get a better price on the house since I do not need to pay the commission. They do not care who write the P&S. The only thing that we need to agree is the price.

It looks like I do need to hire a lawyer to get the deed you have mentioned over to the buyer. Does broker do this kind of job? About how much they charge to handle this?

Once again, thanks!

 

[shawnusa]

It's best to use the services of somebody in the industry so there are no screw ups.

About how much the lawyer would charge for doing this kind of work? We do not use the realtor is try to give the buyer a better price. Correct me if I am wrong, if I use a realtor, then I do not need to pay extra for a lawyer to handle that?

Thanks!

 

[PaulMass]

The way it's done varies by area.

In Boston, the listing agent generally prepares the Purchase and Sale Agreement.

In Worcester, the seller's attorney generally prepares the P&S.

In both areas, the buyer's agent fills out the offer to purchase.

Since the primary duty of a real estate agent is to bring the buyer and seller together, you really don't need one. The real estate agent usually gets paid more that the attorneys.

Since the bank will have an attorney who will NOT be representing your interests, you're probably better off getting your own.

 

[FlyingRon]

I don't know about Boston area prices but in NJ, Virginia, and NC it typically runs between $500-1000 for a lawyer to handle it all. I've done one agent-less sale (where again I was selling to one of the tenants in the property).

 

[shawnusa]

I don't know about Boston area prices but in NJ, Virginia, and NC it typically runs between $500-1000 for a lawyer to handle it all. I've done one agent-less sale (where again I was selling to one of the tenants in the property).

Thanks for the information. I am going to sell it to the tenant too. That is the reason I have to write a P&S. Looks like I need to have a lawyer to write the P&S, prepare the deed and handle the closing. I never done this before, is that the questions to ask the lawyer when get a price quote(write P&S, prepare the deed and handle the closing)?