Please see the answers below to some commonly asked questions related to FSBO transactions.
Can’t I just use the standard forms off the internet?
Although standard real estate forms are available from websites, such as the Kansas City Regional Association of Realtors (www.kcrar.org), these forms do not come with an explanation of the various terms or when certain disclosures are required. For most people, the sale or purchase of a home is one of the largest transactions they will ever be a party to. With so much money at stake, it is important to ensure that all the paperwork is completed correctly and that the buyer and seller are protected from future liability. An experienced real estate attorney can ensure the property ownership is properly transferred and/or help address issues that arise during the closing process.
Do I need title insurance?
If the buyer is paying in cash or the seller is providing financing, title insurance is not required to complete the transaction. However, it is strongly recommended that title insurance is a part of every real estate transaction. Title insurance protects the buyer (and mortgage company, if applicable) in the event another party claims an ownership interest in part or all of the property. We have experience working with many of the title insurance agencies in the area and can provide recommendations if needed.
Isn’t a real estate attorney expensive?
Especially when comparing the costs to that of a real estate agent, an experienced real estate attorney is rather inexpensive. For Sale by Owner packages start at only a few hundred dollars or less than half a percent of the purchase price for a $100,000 home. The standard real estate agent’s commission on that same home would be $6,000 or over 10 times the cost of hiring an experienced Real Estate Attorney to draft a contract.