Cancelling FSBO Purchase Contract

[Scott K.]

I am selling my home as a FSBO. There are no agents or brokers involved.

Because of certain circumstances, we have both negotiated and agreed over the phone to the Purchase Contract being cancelled.

The escrow company has been instructed by both of us to disburse part of the funds to me, and part of the funds to the buyer, via an escrow Cancellation Instructions form.

What form or letter do the buyer and I need between us to formally cancel the Purchase Contract? We are both being considerate and civil towards each other at this time, but my inclination is that we need some sort of Cancellation of Purchase Contract letter that the buyer signs and I accept. Is it necessary? Anything specific to put in the letter?