For sale by owner contracts are lawfully binding documents laying out the comprehensive terms and conditions of a property sale between the buyer and homeowner. The contract describes the deal's specifics, such as the payment terms, purchase price, and any contingencies that must be fulfilled before closing the sale.

An FSBO contract is a legally binding document to formalize the sale of the house. In a traditional real estate transaction, the seller or buyer’s agent creates the purchase agreement. However, in an FSBO deal, the seller is responsible for the contract. They must hire a real estate attorney to make the For Sale By Owner Contract legally binding.