[MT] [MT] What should I include in a real estate sale contract?
We are purchasing our mother's home in Montana. We wanted to have an agreement written and in place. We have several factors going into this purchase. Selling our primary home in AZ and buying smaller home closing on 09/23. Once this home sells we will be obtaining a VA loan to complete the purchase of the home in Montana. We wanted to have a legal agreement and make payments to our mother. I have amended the purchase agreement to a FSBO. We are buying the home "AS IS".
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Solved
Thank you for your patience.Since this is a family-to-family sale, you’re smart to want the agreement tight so there are no misunderstandings later (especially because you’ll start with private payments and then refinance with a VA loan).
You’ll want to include the following:
Parties
Seller: (Mother’s full legal name)
Buyer(s): (Your names)
Property description
Legal description (from deed, not just the street address).
Clarify it includes all 3.13 acres, the main house, and doublewide.
Purchase price
“The total purchase price for the property is $________.”
Payment terms
“Buyer shall pay Seller $3,000.00 per month, beginning on [date], at 0% interest, until Buyer obtains VA loan financing.”
Spell out how payments are made (check, transfer, account number).
Clarify that these payments are credited toward purchase price at closing.
Financing clause
“Buyer intends to obtain VA loan financing to complete the purchase of the property. Seller agrees that payments made prior to closing shall be applied toward the purchase price.”
Add a timeline (e.g., “within 12 months of the date of this agreement” or another period you and your mom agree on).
Closing and title transfer
State that title will transfer once VA loan closes (not before).
Seller keeps legal title until closing, but Buyer has possession if you move in early (if that’s the plan).
As-Is clause
“The property is sold in its present condition ‘AS IS.’ Seller makes no warranties as to condition of improvements, systems, or fixtures.”
Default/protections
What happens if Buyer cannot obtain the VA loan? (Does Seller keep payments as rent? Do you renegotiate?)
This prevents confusion later.
Other standard FSBO terms
- Earnest money (if any)
- Closing costs allocation
- Governing law (Montana)
- Signatures (Buyer(s) and Seller(s), with date)
- Notarization recommended, especially since you’ll eventually be working with a VA lender (they want everything clean)
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We are purchasing our mother's home in Montana. We wanted to have an agreement written and in place. We have several factors going into this purchase. Selling our primary home in AZ and buying smaller home closing on 09/23. Once this home sells we will be obtaining a VA loan to complete the purchase of the home in Montana. We wanted to have a legal agreement and make payments to our mother. I have amended the purchase agreement to a FSBO. We are buying the home "AS IS".
Lexi, Chatbot
I understand that navigating a home purchase can be complex, especially with family involved. Can you tell me if there are any specific terms or conditions you want included in the agreement with your mother?
The purchase price, the purchase of all 3.13 acres that include a main house and a doublewide. Terms would be 0% interest and monthly payments of $3000.00 until we can get a loan
Lexi, Chatbot
Have you already discussed the payment structure and timeline with your mother regarding the purchase?
Yes
Lexi, Chatbot
Is there anything else the Real Estate Lawyer should know before I connect you? Rest assured they'll be able to help with your purchase agreement.
No, not unless the attorney has recommendations or correct verbiage.
Queeneth E. Esq
Hello and welcome to AskaLawyer. My name is Queeneth. I am an attorney with over 8 years of legal experience.I will do my best to assist you today, First I need to ask you a few question to give you the best answer.(Kindly note that our conversation does not establish attorney- client relationship.)
Queeneth E. Esq
What state is your legal issue related to?
Montana
Queeneth E. Esq
Thank you for the feedback. Please allow me some time to prepare a response. I will get back to you shortly.
Queeneth E. Esq
Thank you for your patience.Since this is a family-to-family sale, you’re smart to want the agreement tight so there are no misunderstandings later (especially because you’ll start with private payments and then refinance with a VA loan).
You’ll want to include the following:
Parties
Seller: (Mother’s full legal name)
Buyer(s): (Your names)
Property description
Legal description (from deed, not just the street address).
Clarify it includes all 3.13 acres, the main house, and doublewide.
Purchase price
“The total purchase price for the property is $________.”
Payment terms
“Buyer shall pay Seller $3,000.00 per month, beginning on [date], at 0% interest, until Buyer obtains VA loan financing.”
Spell out how payments are made (check, transfer, account number).
Clarify that these payments are credited toward purchase price at closing.
Financing clause
“Buyer intends to obtain VA loan financing to complete the purchase of the property. Seller agrees that payments made prior to closing shall be applied toward the purchase price.”
Add a timeline (e.g., “within 12 months of the date of this agreement” or another period you and your mom agree on).
Closing and title transfer
State that title will transfer once VA loan closes (not before).
Seller keeps legal title until closing, but Buyer has possession if you move in early (if that’s the plan).
As-Is clause
“The property is sold in its present condition ‘AS IS.’ Seller makes no warranties as to condition of improvements, systems, or fixtures.”
Default/protections
What happens if Buyer cannot obtain the VA loan? (Does Seller keep payments as rent? Do you renegotiate?)
This prevents confusion later.
Other standard FSBO terms
- Earnest money (if any)
- Closing costs allocation
- Governing law (Montana)
- Signatures (Buyer(s) and Seller(s), with date)
- Notarization recommended, especially since you’ll eventually be working with a VA lender (they want everything clean)
Queeneth E. Esq
Get a title company involved even now. They can hold payments in escrow and make sure everything is documented properly. That way, when you apply for the VA loan, the lender sees a clean paper trail.
Consider an Installment Land Contract (Contract for Deed) or a Promissory Note + Memorandum of Agreement recorded at the county. This formally records your interest and protects both sides.
VA loan caution: Some lenders are strict about how pre-closing “rent-to-own” or private arrangements are documented. If the FSBO contract looks unusual, it could slow down your VA loan approval. Having it attorney-reviewed will smooth that.
Before signing, I strongly recommend you (and your mom) have a Montana real estate attorney review the draft FSBO contract and payment terms. Since you’re family, you want to keep it simple but also enforceable in case something unexpected happens.
Is there anything else you would like me to explain or any additional information you need? Feel free to ask.
Thank you! This was very helpful
Queeneth E. Esq
You’re welcome. I'm happy to have assisted you today.
Queeneth E. Esq
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