Selling your home without a real estate agent, often called “For Sale By Owner” or FSBO, can look appealing at first. Avoiding commission fees sounds like an easy way to save money. What many homeowners don’t realize is that selling on your own also means taking on serious legal responsibilities. Without proper guidance, small mistakes can turn into costly problems. Here’s a clear look at the legal risks involved in selling your home without an agent.

Disclosure Mistakes Can Lead to Lawsuits

One of the biggest legal risks is improper disclosure. Sellers are legally required to disclose known issues with the property, such as structural problems, water damage, mold, or past repairs. These requirements vary by state, but failing to disclose or providing incomplete information can expose you to lawsuits long after the sale closes.

An experienced agent helps ensure disclosures are accurate and complete. When selling on your own, you’re responsible for knowing exactly what must be disclosed and how. Even an honest oversight can be interpreted as misrepresentation if a buyer later discovers a problem.

Read more: Buyer's Rights: What to Know About Disclosures Related to Death in a Home

Contract Errors Are More Common Than You Think

Real estate contracts are dense legal documents filled with deadlines, contingencies, and specific language. A missed date, vague clause, or incorrectly filled-out form can jeopardize the entire transaction.

For example, mishandling inspection contingencies or financing deadlines can give buyers legal grounds to cancel the contract or demand concessions. Without an agent reviewing these documents, you may not realize an issue until it’s too late.

Fair Housing Violations Can Happen Unintentionally

Another risk many FSBO sellers overlook is fair housing compliance. Federal and state fair housing laws prohibit discrimination based on protected characteristics. Casual comments, marketing language, or how showings are handled can unintentionally violate these laws.

Real estate agents are trained to market homes and interact with buyers in a compliant way. Selling on your own increases the chance of saying or doing something that could be interpreted as discriminatory, even if that was never your intention.

Pricing and Negotiation Missteps Carry Legal Consequences

Pricing errors aren’t just financial risks. They can create legal exposure as well. Overpricing can lead to longer market times and pressure to make concessions later, while underpricing can raise questions about fairness if multiple offers are involved.

Negotiations also carry legal weight. Verbal agreements, email exchanges, and text messages can sometimes be interpreted as binding. Without clear guidance, it’s easy to agree to terms you don’t fully understand or intend.

Read more: Negotiation Skills: How Your Real Estate Agent Can Get You the Best Deal

Mishandling Escrow and Closing Documents

The closing process involves transferring funds, titles, and legal ownership of the property. Errors in escrow instructions, deed preparation, or closing disclosures can delay or derail the sale. In some cases, mistakes may require legal intervention to correct after the fact.

Agents coordinate closely with escrow officers, attorneys, and title companies to ensure everything is executed properly. When selling without an agent, you become the point person for all of it.

Discover: What to Do Before Closing on a House: Advice for Buyers

Final Thoughts

Selling your home without an agent puts you in the role of marketer, negotiator, and legal coordinator all at once. While it’s possible to manage, the legal risks are real and often underestimated. What you save in commission fees can quickly be lost through legal disputes, delays, or costly mistakes. For many sellers, professional representation isn’t just about convenience. It’s about protecting yourself legally throughout one of the largest financial transactions of your life.