When you decide to sell your home without a real estate agent, you're taking full control of the process—and that includes managing the legal paperwork. One of the most critical components of a For Sale By Owner (FSBO) transaction is the contract of sale. Whether you're a seasoned seller or new to private property sales, understanding the contract conditions FSBO sellers must include is essential for a smooth and legally compliant transaction.

With the support of platforms like For Sale By Home Owner, private sellers can access the tools and resources they need to handle legal documents confidently. This property sale legal guide outlines the key contract conditions you should never overlook in a FSBO transaction.

Purchase Price and Deposit Amount

At the heart of any sale is the purchase price. Your contract must clearly state the final agreed-upon sale price and the deposit amount the buyer is expected to pay. In most Australian states, a deposit of 5%–10% is standard, and it’s typically held in a trust account until settlement.

Including specific contract conditions FSBO such as the deposit deadline ensures both parties know their obligations and keeps the transaction on track.

Settlement Date

The settlement date is when ownership officially transfers from the seller to the buyer. This date needs to be mutually agreed upon and clearly written into the contract. Standard settlement periods in Australia range from 30 to 90 days, depending on the state and the terms negotiated.

Having a clear and realistic settlement date prevents unnecessary delays and gives both parties time to prepare the necessary documentation.

Inclusions and Exclusions

Your contract should list all items that are included in the sale—such as dishwashers, blinds, or light fixtures—as well as any exclusions. For example, if you plan to take a specific appliance or decorative item, you must state that clearly in the contract.

Ambiguity around inclusions is a common source of conflict, so detail matters. With help from For Sale By Home Owner, you can use contract templates that prompt you to list these details to avoid any confusion.

Finance Clause

Many buyers purchase with conditional approval from a lender. The finance clause allows the buyer to withdraw from the contract if they’re unable to secure a home loan within a specified time frame—often 14 to 21 days. This clause protects the buyer, but it also sets expectations for when the deal becomes unconditional.

As part of your contract conditions FSBO, clearly specify the finance approval period, and include a requirement for the buyer to notify you of their progress.

Building and Pest Inspections

Buyers often request a building and pest inspection before finalising the sale. A standard property sale legal guide recommends including clauses that allow the buyer to conduct these inspections within a set timeframe—usually 7 to 14 days.

If the results uncover serious issues, the buyer may have the right to negotiate repairs, request a price reduction, or exit the contract.

Cooling-Off Period

Depending on your state or territory, buyers may be entitled to a statutory cooling-off period, typically ranging from two to five business days. This clause must be outlined in the contract and includes details on how a buyer can legally withdraw and what penalties may apply.

A cooling-off clause ensures compliance with state-specific laws and gives buyers peace of mind, which can help the sale proceed more smoothly.

Special Conditions

Special conditions refer to any unique terms you and the buyer agree upon, such as early access to the property, extended settlement, or subject-to-sale clauses. These must be written clearly into the contract and reviewed by a solicitor or conveyancer to ensure they’re enforceable.

Customising your contract conditions FSBO based on your circumstances helps protect your interests and provides flexibility during negotiations.

Conclusion

Selling your home privately requires attention to legal detail—especially when it comes to drafting and reviewing contract terms. By understanding the essential contract conditions FSBO sales require, you can move forward with confidence and reduce the risk of disputes.

At For Sale By Home Owner, private sellers get access to real estate listing services, legal templates, and support throughout the process. With the right knowledge and tools, your private property sale can be not only cost-effective but legally secure and stress-free.