Selling your home without an agent means you personally handle the paperwork to sell a house without a realtor: roughly a dozen core documents spanning three stages of the transaction. Before you list, you gather ownership and financial records. Once you have a buyer, you exchange disclosures and sign a purchase contract. At closing, you sign the deed and a stack of settlement documents, and after the sale you report the transaction to the IRS. Some of these documents are required by federal or state law. Others protect you from a lawsuit years down the road. Skipping any of them is where FSBO sellers get hurt.
What You Need Before You List
Pull these together before the first showing. Having them ready keeps the deal moving once a buyer is interested, and some of them take time to request.
Your deed is the starting point. It proves ownership and carries the legal description that will appear on the new deed at closing. If your copy is missing, the county recorder’s office where the property sits keeps the recorded version on file.
Your most recent property tax statement lets buyers estimate their future tax burden, and the closing agent uses it to prorate taxes between you and the buyer at settlement.
A property survey shows the lot’s legal boundaries, the location of structures, and any easements. The one from when you purchased may still be usable. If not, the buyer’s lender may require a new one, and who pays becomes a negotiating point.
If you still owe on the mortgage, request a payoff statement from your lender well before listing. It shows the exact amount needed to satisfy the loan: unpaid principal, accrued interest, and any fees. Federal law requires your servicer to send an accurate payoff balance within seven business days of receiving your written request.1Office of the Law Revision Counsel. 15 U.S. Code 1639g – Requests for Payoff Amounts of Home Loan Order it early so the number does not surprise you at closing.
Pull together your utility bills for the past 12 months. Buyers consistently ask about average monthly costs for electricity, gas, water, and sewer, and real numbers build trust.
If the property is in a homeowners association or condominium association, gather the declaration of covenants and restrictions, bylaws, recent meeting minutes, and the association’s latest financial statements. Buyers need these to understand dues, pending special assessments, and rules that could affect how they use the property. Some states require you to provide them within a set window after a buyer requests them.
Disclosures You Owe the Buyer
Disclosure forms are where FSBO sellers face the highest legal risk. They require you to report what you know about the property’s condition. A missing disclosure can trigger a lawsuit long after closing, and “I forgot” is not a defense that holds up well.
Lead-Based Paint Disclosure
For any home built before 1978, federal law requires you to give the buyer a specific disclosure form about known lead-based paint hazards and to provide copies of any existing reports or test results.2US EPA. Real Estate Disclosures About Potential Lead Hazards You must also hand the buyer the EPA pamphlet “Protect Your Family from Lead in Your Home” and allow at least 10 days for the buyer to arrange a lead-paint inspection at their own expense.3Environmental Protection Agency. Lead-Based Paint Disclosure Rule Fact Sheet The buyer can waive the inspection period in writing, but you cannot skip the disclosure. It applies whether or not you actually know of any lead in the home.
State Seller Disclosure Form
Nearly every state requires sellers to complete a standardized disclosure form covering the property’s physical condition. Questions vary by jurisdiction but generally ask about the roof, foundation, plumbing, electrical, and HVAC systems. You will also report any history of water intrusion, pest infestations, environmental hazards like asbestos or radon, and whether renovations were done with or without permits.
Answer every question based on what you actually know. If you are unsure, say so rather than guessing. Leaving a question blank or checking “unknown” when you have actual knowledge is the kind of omission that generates lawsuits. Most state forms include a signature line where you certify the answers are truthful. Treat the form as a legal document, not a marketing one.
Natural Hazard and Flood Information
No federal law requires you to disclose flood zone status, but the buyer’s lender will check FEMA flood maps and notify the borrower if the property sits in a Special Flood Hazard Area. Several states go further and require sellers to disclose known flooding risks, wildfire zones, earthquake fault lines, or other natural hazards. If your property has flooded before or sits in a mapped flood zone, disclose it upfront.
The Purchase Agreement
The purchase agreement is the contract that governs the whole transaction. In a FSBO sale, you are the one providing or negotiating it. State-specific templates are available from real estate attorneys or legal forms providers, but having an attorney review the contract before you sign is the single smartest expenditure in a FSBO deal.
At minimum, the contract must include:
- The full legal names of every buyer and seller, plus the property’s legal description as it appears on your deed or tax records.
- The agreed purchase price and the earnest money deposit, which usually runs 1% to 3% of the sale price and goes into escrow with a neutral third party like a title company or attorney. The contract should spell out exactly when the buyer gets this money back and when you keep it if the deal collapses.
- A specific closing date, typically 30 to 60 days from contract execution.
- Contingency clauses: the conditions that must be satisfied before the sale closes.
Common Contingencies
Contingencies protect the buyer, but they also define when and how you can move on if the deal stalls. Understand each one before agreeing to it.
- A financing contingency gives the buyer a set window to secure mortgage approval. If the loan falls through within that window, the buyer walks and keeps the deposit.
- An inspection contingency lets the buyer hire a professional inspector and then negotiate repairs, request a price reduction, or walk away based on the findings. This is where FSBO negotiations most often get contentious.
- An appraisal contingency protects the buyer if the home appraises below the purchase price. Lenders will not finance more than appraised value, so this clause lets the parties renegotiate or cancel.
- A title contingency requires you to deliver clear ownership, free of unexpected liens or claims.
If your buyer is paying cash, ask for a proof of funds letter from their financial institution showing liquid assets sufficient to cover the purchase price and closing costs. A bank statement or formal letter dated within 30 days is standard.
Title Search and the Deed
The title search confirms you actually own what you are selling and identifies anything attached to the property that must be resolved before it changes hands. A title company or attorney examines public records for outstanding mortgages, tax liens, HOA liens, court judgments, easements, and boundary disputes. The results arrive in a preliminary title report or title commitment listing every issue that needs to be cleared before closing.
Common problems include unpaid property taxes, a prior mortgage that was paid off but never formally released, a misspelled name on an old deed, or an easement nobody mentioned. Most are fixable, but they take time. Order the title search early in the contract period.
Title Insurance
Title insurance comes in two forms. The buyer’s lender will require a lender’s policy covering the bank’s interest for the life of the loan. An owner’s policy protects the buyer personally and is optional but strongly recommended. Who pays for each policy varies by local custom. Know your local norm before negotiations begin.
The Deed
The deed is the document that actually transfers ownership. A general warranty deed offers the buyer the strongest protection because it guarantees you hold clear title and have the right to sell. The closing agent prepares it using the legal description from your existing deed and the names of all parties. You sign it in front of a notary at closing. Other deed types exist, such as a special warranty deed or quitclaim deed, but most residential buyers and their attorneys will insist on the general warranty version.
Closing Day Paperwork
Closing involves a stack of documents, most prepared by the closing agent. Your job is to review everything carefully before signing. Once the deed is recorded, unwinding an error becomes exponentially harder.
Settlement Statement
Every closing produces an itemized breakdown of who pays what. If the buyer has a mortgage, this takes the form of a Closing Disclosure, a standardized federal form required for most residential mortgage transactions. For cash sales or transactions outside those rules, an ALTA Settlement Statement or similar form serves the same purpose.4American Land Title Association. ALTA Settlement Statements Review every line. Prorated property taxes, recording fees, transfer taxes, title insurance premiums, and any repair credits should all match what you agreed to in the contract.
Transfer Tax Declaration
Most states charge a transfer tax when real property changes hands. Rates range from a flat nominal fee to roughly 3% of the sale price depending on the state, and about a third of states impose no state-level transfer tax at all. You will sign a transfer tax declaration or affidavit as part of the closing paperwork, and the tax itself is typically deducted from your proceeds on the settlement statement.
Affidavit of Title
This is your sworn statement that you still own the property, that no new liens have attached since the title search was completed, and that no undisclosed parties have ownership claims. The title company requires it before issuing the buyer’s title insurance policy.
Non-Foreign Seller Certification
Under federal tax law, buyers must withhold 15% of the sale price when purchasing U.S. real property from a foreign seller.5Internal Revenue Service. FIRPTA Withholding To avoid the withholding, you sign a certification under penalty of perjury stating that you are not a foreign person, along with your name, taxpayer identification number, and home address.6Internal Revenue Service. Exceptions From FIRPTA Withholding This is standard paperwork at virtually every residential closing, not something triggered only when foreign ownership is suspected.
Bill of Sale and Occupancy Agreement
If appliances, furniture, or other personal property is included in the deal, a separate bill of sale transfers those items outside the deed. If you offered a home warranty to attract buyers, that agreement is signed at closing too.
If you need to remain in the home after closing, you and the buyer must sign a post-closing occupancy agreement before settlement. The document specifies the length of your stay, the daily or monthly charge, the security deposit, and the condition you must leave the property in. Most of these agreements cap the occupancy period at 60 days. A handshake is not enough.
Recording the Deed
After you sign the deed before a notary, the closing agent records it with the county recorder’s office. Recording is what makes the transfer official against the rest of the world. Until the deed is on file, a subsequent buyer who does not know about your sale could claim superior rights. The closing agent handles this step, but confirm it was completed within a few days of closing.
Tax Forms After the Sale
The paperwork does not end at closing. The IRS expects to hear about your home sale, even if you owe nothing on the profit.
Form 1099-S
Someone involved in the transaction must report the gross proceeds to the IRS on Form 1099-S. In most closings, the title company or settlement agent files it automatically.7Internal Revenue Service. Instructions for Form 1099-S In a true private sale with no intermediaries, the obligation can land on the buyer or on you, which is one more reason to use a title company or attorney at closing.
Capital Gains Exclusion
You can exclude up to $250,000 in profit from the sale, or $500,000 if married filing jointly, as long as you owned and lived in the home as your primary residence for at least two of the five years before the sale.8Office of the Law Revision Counsel. 26 U.S. Code 121 – Exclusion of Gain From Sale of Principal Residence The two years do not need to be consecutive. Many sellers owe nothing in capital gains tax on their home sale, but you still need to report the transaction if you receive a Form 1099-S or if your gain exceeds the exclusion.9Internal Revenue Service. Topic No. 701, Sale of Your Home
Reporting on Your Return
When reporting is required, use Schedule D (Form 1040) and Form 8949 to document the sale, your cost basis, and any gain or loss.9Internal Revenue Service. Topic No. 701, Sale of Your Home If your entire gain fits within the exclusion and you did not receive a 1099-S, you generally do not need to report the sale at all. If the numbers are close, report it anyway. The IRS matches 1099-S filings to tax returns, and an unexplained omission can trigger a notice.
When to Bring in an Attorney
About 22 states and the District of Columbia require an attorney to participate in real estate closings, though “participate” ranges from sitting at the closing table to simply reviewing or preparing documents behind the scenes. Even in states without that requirement, hiring a real estate attorney to draft or review your purchase agreement, disclosures, and closing documents is the most cost-effective protection a FSBO seller can buy. Fees for a straightforward residential closing are a fraction of what a defective contract or missed disclosure could cost in litigation.
The areas where FSBO sellers most commonly make costly mistakes are the purchase agreement, the state disclosure forms, and the deed preparation. If your budget allows one professional, make it the attorney. Bad paperwork can follow you for years.