FSBO Seems Easy, But Getting Texas Law Wrong Can Cost You

 Posted on October 27, 2023 in Real Estate

For sale by owner, or FSBO, seems like an easy way to save money selling your home in Texas. But if you do not follow real estate laws properly, it can end up costing you big time down the road. A Texas lawyer can help you make sure you are not making any major mistakes along the way.

Know Your Legal Obligations

In Texas, FSBO sellers have all the same legal obligations and disclosures as agents. This includes providing a Seller’s Disclosure form, following property condition disclosure laws, and abiding by contract cancellation rules. Mess up your legal duties and you could face lawsuits.

Handle Contracts and Titles Correctly

FSBO means handling tasks like title transfers and sales contracts yourself. Without legal experience, it is easy to make very expensive mistakes. If a contract does not comply with Texas law or you fail to file title and deed paperwork properly, you are in legal hot water.

You Still Owe Taxes

Even if you avoid agents, you cannot avoid taxes. Texas requires you to calculate and collect the proper property and title transfer taxes. If you get it wrong, the taxman will come calling. You must also report the sale on your income taxes correctly.

Follow Fair Housing Rules

As a seller, you must follow federal fair housing laws even if you do not use an agent. Discriminating against buyers due to race, religion, family status, disability, or other protected classes when marketing or showing your home puts you at legal risk of hefty fines.

Disputes Can Get Complicated

If any disputes arise with the buyer during an FSBO transaction, you are on your handling the conflict without real estate legal expertise. A simple dispute can rapidly morph into an expensive legal nightmare.

Contact a San Antonio, TX Real Estate Lawyer

Trying FSBO without understanding real estate laws is incredibly risky as it could cause a lot of issues down the road. Work with an experienced Bexar County, TX real estate attorney to review contracts, filings, and disclosures when selling FSBO.

FSBO seems like an easy way to sell your home by yourself, but the risk is not worth all of the headaches that can happen when things go wrong. Call Geoff Mayfield, Attorney at Law at 210-535-0870 for a free consultation and to see how we can help you along the way to make sure everything is going the way it should.