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Navigating FSBO Contracts in California: How to Draft Yours in 2025

Rupi Azrot
January 29, 2025
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Selling your home without a real estate agent in California can save you thousands in commission fees, but it also means you’re responsible for handling the legal paperwork, including drafting a For Sale By Owner (FSBO) contract. This document serves as the legal agreement between you (the seller) and the buyer, outlining the terms of the sale and ensuring compliance with California real estate laws.

If you're considering selling your property yourself, this guide will walk you through the essential components of an FSBO contract, required disclosures, and how to simplify the process with ListLean.com.

What Is a For Sale By Owner (FSBO) Contract?

A For Sale By Owner (FSBO) contract is a legally binding agreement that outlines the terms and conditions of a home sale between a private seller and a buyer—without a real estate agent. In California, this contract must comply with state laws and include required disclosures to protect both parties.

Key Elements of a California FSBO Contract

1. Basic Property & Buyer/Seller Information

  • Property Address: Full street address and Assessor’s Parcel Number (APN).
  • Seller & Buyer Names: Legal names of both parties.
  • Purchase Price & Deposit: Total sales price and initial earnest money deposit (if applicable).

2. Purchase Terms & Payment Details

  • Financing or Cash Sale: Is the buyer paying in cash, or are they securing a mortgage?
  • Deposit & Escrow: How much is the deposit, and which escrow company will handle the transaction?
  • Loan Contingency: If the buyer is financing, the contract should specify a loan approval deadline.

3. Contingencies & Timelines

  • Inspection Contingency: Allows the buyer to conduct a home inspection and request repairs.
  • Appraisal Contingency: If the buyer is financing, the lender will require an appraisal.
  • Closing Timeline: Specifies the closing date and when the buyer takes possession.

4. Required California Disclosures

California law requires sellers to provide mandatory disclosures to the buyer. These include:

  • Transfer Disclosure Statement (TDS) – Seller’s knowledge of property defects.
  • Natural Hazard Disclosure (NHD) – Determines if the home is in a hazard-prone area (earthquake, flood, fire zones, etc.).
  • Lead-Based Paint Disclosure – Required for homes built before 1978.
  • Other Local & State Disclosures – Depending on city or county laws.

5. Escrow & Title Process

  • Escrow Company: Typically handles deposit, funds transfer, and paperwork processing.
  • Title Search & Insurance: Ensures the property has no outstanding liens before ownership is transferred.

6. Closing & Possession Details

  • Final Walkthrough: Buyer inspects the property before closing.
  • Closing Costs: Specifies which party pays certain costs (escrow, title insurance, etc.).
  • Transfer of Ownership: Upon closing, the deed is transferred, and funds are exchanged.

7. Final Signatures & Legal Execution

The contract is not legally binding until both parties sign and date the document.

How to Draft an FSBO Contract in California

Option 1: Write It Yourself (Risky & Time-Consuming)

You can create a basic FSBO contract using a free template, but this can be risky if you overlook important legal details. Missing disclosures or incorrect contract terms can lead to legal issues or buyer disputes.

Option 2: Use ListLean to List & Manage Your FSBO Sale (Best Option)

Instead of struggling with legal paperwork, use ListLean.com—a platform that simplifies the FSBO process by providing MLS exposure, contract assistance, and expert guidance.

ListLean offers three affordable plans:
✅ Lean Plan ($95 One-Time Fee) – Basic MLS listing to gain exposure.
✅ Boost Plan – Enhanced marketing and assistance with documents.
✅ Elite Plan – Full-service support for FSBO sellers.

đź“Ś Visit ListLean.com to choose the best plan for your FSBO sale.

Final Thoughts

Drafting a For Sale By Owner contract in California requires attention to detail and legal compliance. By including all required disclosures, contingencies, and payment terms, you can protect yourself and ensure a smooth transaction.

If you’re looking for a simplified way to list, manage, and close your FSBO sale, explore ListLean.com today!

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Selling a home FSBO (For Sale By Owner) can be an attractive option for homeowners looking to save on realtor commissions and retain control over the selling process. However, navigating the complexities of a real estate transaction without professional guidance can be challenging. To help you avoid common pitfalls and achieve a successful sale, let's explore some of the top FSBO mistakes to avoid when selling your home.

1. Pricing it Wrong:

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2. Neglecting Legal Requirements:

Selling a home involves adhering to various legal requirements and disclosures. Failure to comply with state and local regulations can lead to legal issues and jeopardize the sale. Make sure you familiarize yourself with California's real estate laws, including disclosure requirements, contract terms, and any local ordinances that may affect the sale of your home.

3. Poor Marketing Strategy:

Effective marketing is essential for attracting potential buyers and generating interest in your property. Many FSBO sellers make the mistake of neglecting marketing efforts or relying solely on traditional methods such as yard signs and classified ads. Take advantage of online platforms, social media channels, and professional photography to showcase your home to a wider audience and maximize its exposure.

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FAQ’s

Frequently asked questions

What is the MLS?

The Multiple Listing Service, or MLS, is a database used by real estate brokers to share information about properties for sale by sellers they represent to brokers who represent potential buyers.

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What is a Flat Fee MLS listing?

A Flat Fee MLS listing is a service that allows homeowners like you to list their property on the local MLS for a flat fee rather than paying a traditional real estate agent's commission, which is typically a percentage of the sale price.

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How does a Flat Fee MLS listing work?

You pay a one-time fee to have your property listed on the MLS database. This fee usually covers the cost of listing your property on the MLS for a specified period, often ranging from 6 months to a year. You retain the right to sell your home FSBO and handle the selling process yourself.

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Why can’t I edit my Zillow listing after my property goes live on the MLS?

Once your home is listed on the MLS, websites like Zillow, Redfin, and Realtor.com automatically pull your listing data directly from the MLS.

Because of this MLS connection, Zillow removes homeowner editing access to avoid conflicting information online. This is a Zillow policy that applies to any home listed through the MLS — regardless of which agent or company lists it.
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You can read Zillow's official policy here:
https://www.zillow.com/c/about-linking-and-claiming-listings/

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Am I signing a listing agreement with ListLean?

No, you are not signing a traditional listing agreement with us. ListLean does not represent you as an agent. Instead, you are signing an MLS Entry Agreement, which is required to list your property on the MLS while staying compliant with board and MLS regulations. This agreement allows us to post your listing but does not establish an agent-client relationship. You still remain a For Sale By Owner (FSBO) seller, maintaining full control over your sale.

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Do I need to provide photos and descriptions for my listing?

Yes. Try to provide high-quality photos and a detailed description of your property for the MLS listing. Remember, you want to get the best price for your home, so clear, well-lit photos and an accurate (non-puffed) description will go a long way towards generating interest for your house. We offer professional photography for an extra $250 because we know first impressions are the only ones that matter online in the age of swiping left.

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Can I change the listing price or details after it's posted on the MLS?

Absolutely! Just email us anytime at team@listlean.com for any updates, changes, or open house requests.

For Open Houses, please send us:

  • Property Address (in the email subject line)
  • Open House Day(s)
  • Start & End Time

We ask for at least 48 hours’ notice so we can update the MLS properly. Once updated, Zillow and other websites will reflect those changes automatically within 24-48 hours.

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How do showings and negotiations work with a Flat Fee MLS listing?

As the FSBO homeowner, you'll be responsible for scheduling and conducting showings with potential buyers. When you receive offers, you'll negotiate directly with the buyer or their agent. It's advisable to seek legal counsel or hire a real estate attorney to review any offers or contracts to ensure they're in your best interest.

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What happens if my property doesn't sell during the listing period?

If your property doesn't sell during the initial listing period, you may have the option to renew your Flat Fee MLS listing for an additional fee.

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Is ListLean a Licensed Broker?

Absolutely. ListLean LLC operates under Offercity Brokerage Inc, holding California CalBRE #02185966. As a licensed broker, we’re authorized to list your home on local MLS databases throughout California.

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