Is My Cash Home Buyer Legit? A Checklist Before You Sign

The 8-point checklist

1. Proof of funds. Ask for proof they can pay before you accept. North Carolina's Real Estate Commission advises brokers to ask for proof of funds, and to warn the seller if funds can't be verified.^[1]
2. A real deposit held by a title company or attorney. An Arizona real estate law firm lists little earnest money, often never deposited with a title company, as a warning sign.^[2] See earnest money.
3. A standard contract. Watch for “and/or assigns,” a clause letting them record a memorandum against your title, and nonstandard terms.^[2] See assignment and memorandum of contract.
4. No escape hatches. Even as-is deals with no inspection can include “subject to partner approval” clauses or a tiny deposit that let a buyer walk away, or call days before closing to cut the price. See the reduction call.
5. A way out for you, too. If the contract gives the buyer every exit and you none, backing out later can lead to a lawsuit and a lis pendens on your home.
6. No pressure. North Carolina's Real Estate Commission lists anger and pressure as scam red flags.^[1]
7. Verify contact details yourself. Call the title company using a number you look up independently, not one the buyer gives you.^[4]
8. Check their track record. Look at how long they've been in business, recent reviews, and whether they share a phone number with other brand names. Every CashBuyerRated profile shows these.

Red flags regulators and lawyers warn about

• Signing over your title on a promise. North Carolina's Department of Justice warns that some “we buy homes” companies get homeowners to sign over control or title based only on promises. The owner can lose rights while still owing the mortgage.^[3]
• No real cash. The same warning says these operators are unlikely to actually pay cash or pay off the mortgage fast, and the process can take years or never end in a sale.^[3]
• Overpayment checks. The FTC warns never to accept a check for more than the price with a request to refund the difference, and that money showing in your account after a deposit isn't proof the check is good.^[5]
• Changed wire instructions. NAR flags last-minute changes to where money should be sent, and requests to handle everything online without ever meeting in person.^[4]
• A price far below market. A lawyer who represents sellers lists offers substantially below fair market value among wholesaler warning signs.^[2] Get more than one offer.

Selling for cash can make sense when speed and certainty matter most. The goal isn't to avoid cash buyers. It's to pick one who does what they say. Check the buyer before you sign.