An FSBO contract is a legally binding document used to buy and sell a house. Usually, a real estate agent creates the contract and ensures all terms are outlined carefully. It protects the rights and interests of both the seller and the buyer throughout the transaction.

The PSA is signed by both parties when both agree to the proposed terms. As explained above, usually it’s signed by the buyer, submitted to the seller, then signed by the seller if they accept the terms. The PSA establishes a schedule for the proposed transaction, including when and where closing will take place.