How to Vet a Cash Home Buyer Before You Sign

A cash offer is only as good as the buyer behind it. Before you sign, a few checks can tell you whether the money is real, whether the buyer will actually close and what happens if they don’t. This checklist is for Alameda County homeowners with a cash offer in hand, and it applies to any buyer, including us.

Find out who you’re dealing with

Get the full legal name of the company that will sign the contract, a street address and a phone number. Then check:

Registration. Look up LLCs and corporations on the California Secretary of State’s bizfile Online. An active status shows the business is registered to operate in California. It doesn’t show the business is good at what it does.
Licenses. Buying a house for your own account doesn’t require a real estate license, so many investors don’t have one. If anyone says they’re an agent or broker, confirm it with the Department of Real Estate’s public license lookup.
Reviews. Read reviews on more than one site and look for patterns, such as price cuts right before closing, deals that fell apart or pressure tactics.

Ask whether they’ll close or assign

Some cash buyers are wholesalers. They sign a contract with you, then assign it to another investor for a fee instead of buying the house themselves. Assignment isn’t illegal in itself, and the price in your contract doesn’t change. But it means the company you’re vetting may not be the one that closes.

No California law specifically requires a buyer to tell you up front that they plan to assign. Look for “and/or assigns” or similar wording next to the buyer’s name, and ask:

Will you close yourself, or might you assign this contract?
If you assign, does the deposit stay in escrow, and does the closing date change?
Can I see who the end buyer is before the assignment happens?

You can also ask to strike the assignment language, or to require your written consent to any assignment. Our guide to selling to an investor explains assignment in more detail.

Check the proof of funds

Ask for a recent bank or brokerage statement, or a letter from the financial institution, showing available funds at least equal to the price. It should be in the name of the buyer on the contract, or someone who clearly controls it. Account numbers can be blacked out.

If the purchase depends on a private or hard-money loan, it’s a financed purchase, whatever the offer calls it. Ask whether the contract lets the buyer cancel if the loan doesn’t come through. And if the buyer may assign the contract, remember that the funds you’re shown may not belong to whoever closes.

Insist on a real escrow or title company

Your sale should close through a neutral escrow holder that collects the buyer’s money, records the deed and pays you. In California, independent escrow companies are licensed by the Department of Financial Protection and Innovation (DFPI), and you can search its licensee list. Escrows handled by title companies, banks, attorneys and real estate brokers are overseen by other regulators, such as the Department of Insurance.

A few habits protect you here:

Look up the escrow company’s phone number yourself instead of using one from an email.
Confirm your payout instructions by phone with your escrow officer before closing.
Never send money to the buyer, and never let anyone talk you into closing outside escrow.

Look closely at the deposit

The earnest money deposit is the buyer’s skin in the game. Check three things in the contract: how much it is, how many days the buyer has to put it into escrow and when it stops being refundable. Then ask escrow to confirm it arrived.

A token deposit combined with a long inspection period is effectively a free option. The buyer can tie up your house, shop the deal or come back with a lower price, then walk away at little cost if it doesn’t work out.

Read the contingencies and cancellation terms

Every contingency is a way out for the buyer. Read for:

the length of any inspection or due-diligence period, and whether the buyer can cancel for any reason during it
clauses such as “subject to partner approval” or “subject to buyer’s satisfaction”
the closing date, and what happens if the buyer misses it
which closing costs each side pays
when you hand over possession, and what happens to belongings you leave
any right for the buyer to record a memorandum of the contract against your property, which can complicate a sale to someone else if this deal falls through

If anything is unclear, have a real estate attorney review the contract before you sign.

Never pay to sell your house

A buyer has no reason to charge you to buy your house. Walk away from anyone who asks for an application fee, a “processing” charge or money to hold the deal. Don’t sign a deed, a power of attorney or anything else that transfers an interest in your home before closing.

Know your extra rights if you’re in foreclosure

If you live in a one- to four-unit home and a Notice of Default has been recorded, the Home Equity Sales Contract Act applies when you sell to an investor. The contract must:

Be in writing, in 10-point bold type and in the language you used to negotiate.
State the buyer’s name, business address and phone number, the total price, the payment terms and when you’ll hand over possession.
Include a notice explaining your right to cancel.

You can cancel until midnight of the fifth business day after you sign, or until 8 a.m. on the day of the trustee’s sale, whichever comes first. Until then, the buyer can’t take a deed, record anything you’ve signed or pay you. Anyone soliciting the sale for the buyer must give you written proof of a California real estate license and a bond of twice the property’s value; if they don’t, you can choose to treat the contract as void.

A separate law covers foreclosure consultants, meaning anyone who offers, for pay, to help you deal with the foreclosure. They can’t collect a fee until they’ve fully performed every service they promised, and they can’t take an interest in your home from you. Our foreclosure page explains the rest of the timeline.

Where we stand

Check us the same way. EZ Home Offer is a real estate investor, not an agent or broker, and we may assign our purchase contract to another buyer. We usually send a written cash offer within 24 hours, charge sellers no fees or commissions, cover typical closing costs and buy as-is. Once title is clear we can close in as little as 3 days, or later on your schedule.

Sources

General information about California rules as of October 3, 2026, not legal, tax or financial advice. Laws change and every situation is different, so check the details with an attorney, CPA or other professional.