Although there are a million and one different opinions on why performing a real estate transaction for-sale-by-owner (FSBO) is a terrible idea, many individuals in the US have done so with successful results; in fact, a survey compiling data regarding real estate transactions for 2016 showed that 25 percent of homebuyers bought or sold without a real estate agent. And while you could try to do the DIY route the entire way, working with an experienced real estate attorney is recommended not only so that none of the legal details are overlooked, but also to give you the peace of mind in knowing your interests were protected as the deal goes through, and for the future.
When everyone does their part as promised, the FSBO process can be a great experience for all involved, even leaving some sellers with a sense of euphoria that they managed to pull the whole thing off without a real estate agent or paying a substantial commission. The nightmare begins though when details fall through the cracks or one party fails to honor the FSBO contract.
The FSBO process can be both beneficial and problematic for all parties involved. Sellers often lack the experience to value their homes properly, and although they eliminate the cost of hiring a professional real estate agent, they may lose tens of thousands in the deal. Buyers, convinced not to bring their own agents or attorneys into the deal, may find themselves completely scammed too—or at the very least, left to deal with a handful of legal issues when problems arise but the seller already has some of their funds and is not forthright about returning them. Issues may arise due to details listed regarding the home that are not completely accurate—often just a result of inexperience from sellers—and issues with home inspections could cause problems for both sellers and buyers too. Whether an attorney was consulted in the creation of the FSBO contract or not, once a breach occurs, you will need legal help to fight for your rights and protect your assets.
Working with you from the beginning, a skilled real estate attorney will perform the title search along with preparing what can be a complex amount of paperwork. In the FSBO transaction without any other professionals involved, you may find that you are left without recourse later when something goes wrong. What about a complete breach of contract, however, regarding the FSBO? These issues usually arise when something that was supposed to repaired or added to the home was not—or when finances are not handled as promised. Additional complications arise when the seller agrees to handle any portion of the financing. Payments may not be on time, and insurance and tax issues may get tricky as well.
Although one or both parties may have been hesitant to break out of the DIY mold and bring in either an experienced real estate professional or attorney (or inspectors), once a serious breach of contract has occurred, it is time to get help. Find out more about breaches of contract in business here.
If you find yourself in the middle of a real estate or business dispute, consult with an experienced attorney like Shane Coons right away to protect yourself. Call now at 949-333-0900 or email us at Shane.Coons@seclawoffices.com. We will be glad to meet with you to review your case and explain your legal options. Our office is here to help!