Cash offers feel like a breath of fresh air when you’re stressed about timing, repairs, or a looming move. You want certainty. You want a clean close. Maybe you searched “sell my house fast” and found a handful of companies that say we buy houses for cash. That can be a great path, but the purchase agreement is where the rubber meets the road. The language in those pages decides how fast you actually close, how much money you pocket, and how much risk you carry between signing and funding.
I’ve reviewed hundreds of these agreements for sellers who didn’t have the appetite for a long listing. Cash home buyers aren’t all the same, and their contracts vary more than most people expect. Some are crisp and fair. Others hide vague terms that stall a closing or chip away at your proceeds. Once you know where to look, you can read a purchase agreement in minutes and understand exactly what you’re signing.
Why a cash purchase agreement looks different
Traditional sales revolve around lending timelines. The buyer asks for time to get a mortgage, you negotiate who pays for repairs after the inspection, and everybody waits for the appraisal. Cash deals cut most of that out. They also move faster, often in 7 to 21 days. That speed can blur details. Cash buyers often use their own templates rather than a standard Realtor board form, and they build in flexibility for themselves.
A cash agreement still sets the price, the closing date, and who pays what. The differences tend to show up in contingencies, access rights, seller responsibilities, and outs for the buyer. You’ll also see investor-friendly clauses that allow assignment or extend deadlines if a title issue pops up. None of that is inherently bad, but every clause has a cost. Your job is to stack the costs in your favor.
The number that matters more than price
Everybody fixates on the purchase price. It’s not the whole story. The number that matters is your net. I once watched a seller in Phoenix accept 290,000 from a “we buy houses for cash” company, thrilled to beat the 285,000 offer she had from an owner occupant. At closing she netted less on the higher price because of a few fees baked into the agreement and a short rent-back that charged her more daily rent than a high-end downtown hotel. The cheaper offer would have paid her title insurance and HOA fees.
When you read, translate every dollar and clause into your net. Closing costs, prorations, daily rent if you stay after closing, holdback amounts, and repair credits all flow into your bottom line. If you keep a notepad by your side and add or subtract each item as you go, you’ll have a clearer picture than most agents give their clients.
The headline terms and what they really say
Every purchase agreement has a front page or first section with the big items. Read these slowly, then hunt the connected clauses buried later.
Purchase price and earnest money. A serious cash buyer puts down earnest money that goes hard quickly. On normal investor deals I see 1,000 to 10,000 in earnest money, depending on price. A strong signal is nonrefundable earnest money after a short inspection period, or even at signing if the buyer has already walked the property. If the earnest money is tiny or fully refundable for weeks, the buyer has a free option to tie up your home.
Closing date. Beware of “on or before” language paired with open extension rights. “On or before July 30” is fine if the buyer does not have multiple pathways to push that date. If there’s an automatic extension for title issues, lien releases, or HOA documents, limit each extension to a defined number of days and cap the total extension length. Investors sometimes ask for 30 days plus “extensions as needed.” Don’t accept indefinite.
Type of deed and condition. Most cash home buyers take properties as-is. That phrase matters only if it’s backed up by a clear inspection/contingency section with narrow outs. Make sure the agreement says the property is sold as-is, where-is, with all faults, and that you are not making additional repairs beyond what you explicitly agree to. Also verify the deed type, usually a general or special warranty deed, and confirm the buyer is paying for title insurance if that’s what you negotiated.
Possession and occupancy. If you need to stay after closing for a few days, you’ll see a post-occupancy or rent-back clause. Read the per diem rent, the deposit (often called a holdback or occupancy holdback), and what happens if you stay longer than planned. I prefer a written short-term occupancy agreement attached to the contract with clear utilities, insurance, and liability language.
Closing costs and allocations. This is where your net lives. Go line by line to see who pays for title insurance, escrow fees, recording fees, HOA transfer fees, HOA document fees, home warranty (if any), and any municipal inspections. In many cash deals, buyers will cover most costs to keep things simple. If not, price alone may mislead.
The inspection clause that decides your fate
The inspection or due diligence period is the single most important section in a cash agreement. It dictates how fast the buyer’s earnest money becomes nonrefundable and whether they can walk away. I look for three things: scope, timeline, and cure options.
Scope. If the clause says the buyer may cancel “for any reason in their sole discretion,” the buyer has a free look. That’s common with wholesale buyers who intend to assign the contract. It does not mean the deal is bad, but it means your property might be tied up for a stretch while they shop the contract. If you accept this, shorten the period.
Timeline. Seven days is plenty in most cases. I see agreements with 10 to 15 business days, sometimes longer when tenants occupy the property. The longer the period, the longer your home is off the market. If the buyer insists on more than 10 calendar days, ask for a larger earnest money deposit and partial nonrefundable status after a week.
Cure options. Some agreements require the buyer to notify you of issues and give you a chance to cure or offer a credit. Others allow unilateral cancellation. If the buyer can ask for repairs, state clearly that your only obligation is to consider a credit, not to fix anything. Keep the as-is sale intact unless you’re willing to do work.
Anecdote from a duplex sale: a buyer had a 14-day inspection with a broad discretion clause. On day 13, they asked for a 20,000 price reduction after discovering an old sewer line. The seller countered with a 10,000 credit. The buyer canceled. We lost two weeks in peak season. If we had set a 7-day inspection or made earnest money nonrefundable by day 5, the outcome would have been different.
Assignments, double closes, and who you’re actually selling to
Many companies that advertise we buy houses or we buy houses for cash are wholesalers. They get the property under contract and assign the agreement to another investor for a fee, or they do a double close on the same day. Assignment itself is not a problem, but you should decide if you’re comfortable with it.
Look for an assignment clause. If it says the buyer may assign without your consent and remains liable, that’s standard. If it releases the original buyer from liability after assignment, I don’t recommend it. You want at least one party on the hook. Some sellers prohibit assignment. If you do, expect the buyer to reduce flexibility on price or timing, because they’re removing a key tool.
You can split the difference. Allow assignment only to entities controlled by the buyer, or require written notice of the assignee’s name 48 hours before closing. If you want maximum certainty, add a clause that any assignment does not extend the closing date.
Access rights and showings during escrow
Cash buyers need to bring partners, inspectors, contractors, or lenders to see the property. Excessive access language can turn your home into an open house for investors. Make sure access is reasonable: weekdays during business hours, with 24 hours notice, and a limit on the number of visits. If the home is vacant, you may allow a lockbox and broader access, but insist the buyer assumes liability for any damage during access.
One seller I worked with had three different crews show up in one afternoon because the buyer’s acquisition manager, project manager, and resale agent all scheduled independently. The agreement allowed “reasonable access,” which proved too vague. Add a simple sentence: Buyer shall coordinate all access through Seller with at least 24 hours notice and shall not schedule overlapping visits.
Title, liens, and the quiet killers of a fast close
Title issues are the most common reason cash deals slow down. Old deeds, unreleased mortgages, unpaid taxes, municipal fines, and HOA liens all surface at the last minute. Read the title and closing section to see who pays to cure and how extensions work.
Standard practice is the buyer selects the title company and pays for the owner’s title policy in investor transactions, but this varies by state. More important is the curative language. If a lien appears, does the buyer agree to close as soon as it’s cleared, with a defined cap on days? Ask for a cap, such as a maximum of 15 additional days, and a daily penalty to the buyer if they cause delays beyond that cap without a valid title issue.
If you know of any encumbrances, disclose them upfront. Buyers price risk. Surprises invite renegotiation. If you have a code violation with a potential fine of 100 per day, write it down. In many cases the buyer will handle the fix after closing and have the title company escrow funds to satisfy the city, so you can still close on time.
Appraisals, financing, and why cash still sometimes depends on money
A pure cash buyer does not need financing. Some investors still include a funding contingency that reads like a financing contingency without a bank. It might say the agreement is contingent on the buyer obtaining “acceptable funding” or “private capital.” That defeats the purpose of a cash sale.
If you see any funding or appraisal language, strike it. The only valuation-related contingency you should tolerate is the inspection/due diligence period. After that expires, the buyer should be locked.
Tax prorations, rent prorations, and HOA landmines
Prorations adjust your final check. Property taxes are prorated to the day of closing. In most states you’ll credit the buyer for the current year’s taxes based on the last assessment. If tax bills spike, the proration could be off. You can ask for a true-up clause, but in standard residential cash deals, most people accept last year’s millage rates as the basis.
If you have tenants, the agreement should say the buyer receives rent from the day after closing and that you transfer security deposits at closing. Spell out the deposit amount in dollars, not “per lease.” Provide ledgers. If you are behind on utility bills, disclose it, because some cities place unpaid water or sewer on the property.
HOAs add two common fees: a transfer fee and a status letter fee. Those can run 200 to 800 each, sometimes more in resort communities. Clarify who pays. Also note any special assessments. If an assessment has been levied but not fully paid, buyers will often require you to pay the remaining balance at closing.
Repairs, credits, and the as-is myth
As-is does not prevent negotiation. It simply sets the baseline that you’re not obligated to fix anything unless the contract says so. In cash deals, buyers often prefer a credit to repairs. Credits are cleaner and avoid scheduling. If you agree to a credit, keep it specific and capped. “Seller to credit 3,000 at closing in lieu of roof repairs” is clean. Avoid open language like “Seller to address roof” without defining the action or cost.
One tip that saves arguments: attach photos or a brief scope if the credit relates to something very specific, such as an HVAC condensation leak. Clarity prevents last-minute surprises.
Post-occupancy agreements that won’t bite you
Staying in the house after closing is common with we buy houses for cash transactions. It lets you receive funds, then move on your schedule. The risk is liability and slippage. Use a simple occupancy agreement that covers rent per day, deposit held in escrow, utilities, insurance, and condition at surrender. The deposit or holdback should be enough to motivate timely move-out. I like 500 to 1,000 per day of holdback, released to you upon move-out, and a daily rent that feels fair, not punitive. Three to seven days is smooth. Thirty days invites trouble.
Do not rely on verbal assurances. If the buyer’s project timelines are tight, you could find locks changed at 8 a.m. on quick home purchases move-out day. Put everything in the agreement, including exact handover time and where keys go.
The red flags I watch for, and what they signal
Here are concise contract tells that have saved my clients time and money.
- Earnest money under 500 with a long inspection period. Signals low commitment and potential wholesaling without a strong buyer lined up. Unlimited extensions tied to “title issues.” Some buyers try to create de facto options. Cap extension days and require proof of the specific title issue. Assignments that release the original buyer from liability. If the assignee fails to close, you have no recourse. Funding or appraisal contingencies in a so-called cash deal. Suggests the buyer is trying to backdoor financing risk onto you. Vague access rights and lockbox language on occupied homes. Risks liability and tenant disruption.
If you see any of these, you don’t have to walk away. Counter with tighter terms. Most legitimate cash buyers will meet you in the middle because they value predictable inventory more than squishy clauses.
How timing actually works from signature to close
A typical smooth cash timeline looks like this. Day 0, you sign, the buyer opens escrow, and earnest money is deposited within one business day. Day 1 to 7, inspection and any walk-throughs happen. If the buyer plans to assign, their network tours now. By day 7, the buyer either releases contingencies or requests a narrowly tailored credit. In parallel, the title company clears the file and pulls HOA and payoff statements. Days 8 to 14, title issues, if any, are cured. You receive a settlement statement to review at least two business days before closing. Closing falls between day 10 and day 21 depending on your market, the title company, and HOA responsiveness.
Where deals slip: HOA document delays, old liens, payoffs from nonresponsive lenders, and municipal lien searches in jurisdictions that move slowly. Planning for these in your agreement, even with a single sentence that caps extensions, protects your schedule.
What it means when the buyer is a company that “buys as-is, any condition”
These companies, from local flippers to national brands, serve people who prioritize speed and certainty over squeezing every last dollar. Their contracts are built to be repeatable across dozens or hundreds of homes a year. That’s why you may see broad inspection rights and assignment. The trade is clear: they move fast, you avoid repairs and showings, and they price in risk. If you’re comparing an investor offer to a retail listing, remember the costs of time. Two mortgage payments and a 4,000 roof fix can eat the spread quickly.
I’ve had retired sellers net more on a slightly lower investor price because they closed in 10 days, skipped 12,000 in repairs, and avoided a vacant month. I’ve also had sellers earn more retail in a hot zip code. The right answer depends on your timeline, your tolerance for prep, and whether your house fits retail buyer expectations.
The two-page counter that fixes most problems
If you’re not working with an agent or attorney, don’t be intimidated by contract language. You can counter. A simple counter or addendum can resolve 80 percent of issues. Focus on these pillars: shorten the inspection period, make a portion of earnest money nonrefundable quickly, cap extensions, clarify access, and define who pays which closing costs. If assignment matters to you, set conditions rather than banning it outright.
In practice, I often add five lines:
- Inspection period shall be 7 calendar days from Effective Date. Earnest money becomes nonrefundable at 5 p.m. on the 7th day. Buyer may not extend closing more than 10 days in the aggregate. Any extension requires written notice specifying the issue. Original Buyer remains liable after any assignment. No assignment shall extend closing. Access to be coordinated with 24 hours notice, no overlapping visits, weekdays 9 a.m. to 6 p.m. unless otherwise agreed. Buyer to pay owner’s title policy, HOA transfer and status fees, and half of escrow fee. Seller pays documentary stamps and prorated taxes per local custom.
Tweak those to your market. In some states it’s customary for the seller to pay title, and that’s fine. The logic holds: define money, time, and responsibility.
Reading line by line, without a law degree
Here’s how I advise sellers to review a we buy houses for cash contract in one sitting. First, scan the headline terms for price, earnest money, and closing date. Second, jump to contingencies: inspection, financing, appraisal. Strike any financing language and tighten the inspection days. Third, find assignment and access. Decide your comfort level and set conditions. Fourth, read closing costs and prorations and write your net. Fifth, check occupancy and possession, especially if you need time after closing. Sixth, look for extension clauses and put a cap on days. Finally, verify signatures are from an authorized party. If the buyer signs as an LLC, ask for the operating agreement or a simple corporate resolution confirming authority.
You don’t need to memorize statutes. You just need to make the contract match the deal you think you have.
When to bring in a pro
If there’s a divorce, probate, multiple heirs, liens you don’t understand, or a tenant who won’t cooperate, spend a few hundred dollars on a real estate attorney. They’ll catch the items you might miss, like survivorship language in a deed or an HOA’s right of first refusal. In markets where cash home buyers are common, many attorneys turn documents in 24 to 48 hours and can draft the addendum language you need.
I also suggest an attorney if the buyer wants unusual terms, like a long post-closing occupancy or a complicated holdback for repairs. The more money sits in escrow after closing, the more you want a clean agreement.
A word on reputation and proof of funds
Before you even read the contract, ask for proof of funds. A recent bank statement or a letter from a reputable private lender shows the buyer can perform. If the buyer refuses, that tells you something. Look up the entity on your state’s business registry. Search their name and “reviews” or “BBB” to see if there’s a track record. Plenty of legitimate small investors buy two to ten houses a year and won’t have a big footprint online, which is fine. They should still be able to show funds and put up real earnest money.
If your gut barks, listen. I once had a seller hesitate on a flashy out-of-town buyer offering above market. We asked for proof of funds, received a vague “funds available on request” letter without amounts, and passed. The house sold a week later to a local investor at a clean, slightly lower price that actually closed.
What changes if the house needs heavy work
Properties with foundation issues, fire damage, or hoarding conditions require longer lead times for buyers to price risk. Expect a slightly longer inspection period and more foot traffic for partner approvals. To keep things moving, front-load disclosures. Provide any structural reports, insurance claims, or estimates. Buyers who specialize in heavy lifts move faster when they can underwrite decisively. In these cases I still aim for 10 days or less on inspection, but I make earnest money go hard in stages, such as 5,000 nonrefundable on day 5 and another 5,000 on day 10.
Also, check your insurer. If you plan to vacate before closing, some policies reduce coverage on vacant homes after 30 days. It’s worth a quick call.
Final thought: clarity beats speed every time
When you’re dealing with cash home buyers, the point is to simplify your life. A clear purchase agreement does exactly that. It tells you what will happen, on what timeline, with what protections. It prevents the awkward “we need another week” call on the eve of your movers arriving. It keeps you from paying surprise HOA charges or giving back money at the table.
Take the extra hour to read every section that affects your money, your time, and your occupancy. Ask for proof of funds and real earnest money. Tighten the inspection period, cap the extensions, and define access. If a buyer truly intends to perform, they’ll sign the clean version and close quickly. And if you ever doubt a clause, put it in plain English and ask the buyer to confirm. The best we buy houses for cash companies appreciate a seller who reads carefully. It makes the deal smoother for everyone.