Selling your home For Sale By Owner (FSBO) exposes you to significant legal risks, increasing the likelihood of being sued. 71% of all real estate litigation relates to transactions where one party is not represented. Here are key points emphasizing the legal aspect:
- Common Legal Problems: FSBO sellers often face legal issues, especially if they fail to disclose crucial information about the property. This can lead to lawsuits, impacting the seller financially if the buyer pursues litigation.
- Sued More Than Any Other Group: FSBO sellers face a higher likelihood of legal action compared to other real estate groups. The potential cost of lawsuits far exceeds the expenses associated with hiring a real estate professional.
- Lis Pendens Challenges: While technically possible, selling a house under lis pendens (legal notice of a lawsuit) can be difficult, limiting the pool of potential buyers. This legal obstacle complicates the selling process.
- Poor Offer or Lawsuit Risks: Handling the sale without an agent increases the risks of receiving poor offers or facing legal challenges. The complexities of the process can lead to unfavorable outcomes, including lawsuits.
- Title Insurance and Property Survey Responsibilities: FSBO sellers may face legal obligations regarding title insurance and property surveys, specified in the real estate contract. Failure to fulfill these responsibilities can result in legal consequences.
In conclusion, the legal risks associated with selling FSBO extend beyond financial considerations, making professional guidance essential to navigate potential lawsuits and legal complexities.
