I've read some interesting information for FSBOs. Knowing the basics of real estate contract is essential for FSBO sellers. In general a contract is an agreement between two or more parties to do something. In the contract, each party agrees to do something, known as "consideration", in exchange for the other party also taking some action. For example if you apply for a home loan from a bank and your loan is approved, a written contract is issued that both parties sign. Two things happen with that thick contract. The bank agrees to lend you money. In consideration of this money, you agree to make monthly payments to pay back the loan. Of course some other items may be included in the contract such as maintaining homeowners insurance: http://www.fizber.com/fsbo-help-center.htm