Selling to Cash Buyers: Documents You MUST Have Before Closing

Key Documents When Selling for Cash

In most ways, the paperwork needed when selling a house to a cash buyer is not that different from selling to a buyer who will need to secure a mortgage. While it'd be great to exchange the house keys for a briefcase of cash, shake hands, and be done with it, there are still a few documents you need to close the deal. The process is, however, much quicker than working with a buyer who needs to secure financing and you can make it even swifter by having these documents at the ready when accepting a cash offer.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

A Purchase Contract

Once an agreement is reached, it's time to formalize the sale in writing. The purchase contract will include terms regarding who is responsible for any repairs, and whether the sale is contingent on a survey, inspection, appraisal, and other factors. Often, a cash buyer will waive these requirements. This is because they aren't beholden to a bank that will want to confirm the value of the property before offering a mortgage. Because of this, a cash buyer's contract will often be simpler and free of extensive negotiations, making it much easier for you to evaluate a purchase offer.

Any Mandatory Disclosures

Different states will have different laws about what must be disclosed before a house can be sold. Typically though, the mandatory disclosure document will include factors like known lead-based paint, violent crimes that occurred on the property, and the presence of environmental toxins such as asbestos.

The Deed to the House

The original deed issued at the time you purchased it will be needed when you sell. If you do not have a copy of the deed available, you should be able to acquire one through your county's property tax office. This document is necessary for any real estate transaction as it proves that you are the legal owner of the home and have the right to sell it.

Property Tax Records

Unpaid property taxes can trigger a lien on a property, which can be a headache for both buyer and seller so you'll need documentation of any property tax owed before you sell. Whether the buyer or seller pays will depend on laws in your local area. Documentation can take the form of your most recent property tax bill. If you do not have a physical copy, you may be able to acquire a new copy through your county's property tax website or local office.

Home Inspection Report

Home inspection reports are common documents in the process of buying or selling a home. They provide information about the property's condition and list any issues with the home. When selling to a cash buyer, they are much more willing to buy even if you're selling your homes as-is.

Property Survey

The property survey gives the buyer a clear picture of the size of the property or lot and where the boundary lines lie. If there are any easements or rights-of-way, they will also be disclosed on the property survey.

Buying and selling real estate can involve a lot of time and paperwork but getting a cash offer can expedite the process. By getting a list together of the documents needed before you close, you can be sure that nothing is missed and help the sale move even more quickly. In some cases, you can close the sale of your home and have cash in hand in a matter of weeks.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

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