Use this checklist before you sign anything with a cash buyer. Each item is a common warning sign described in our scam guides.
Cash buyer contract red-flag checklist
Check every statement that is true for the buyer or contract you are considering.
This checklist is educational and not legal advice. Have a real estate attorney or licensed title company review any contract before signing.
Why these twelve signs
The checklist groups warning signs that show up repeatedly in consumer protection guidance and in seller complaints about cash buyers: requests for upfront money, unverifiable funds, tiny deposits, assignment clauses, pressure tactics, and attempts to move the deed or control the closing. None of them proves fraud on its own, but the more you check, the more careful you should be.
| Warning sign | What to do |
|---|---|
| Upfront fees | Walk away. Legitimate buyers do not charge sellers to evaluate or make an offer. |
| No proof of funds | Ask for a bank letter or statement and verify with the bank using a number you look up yourself. |
| Tiny or buyer-held deposit | Ask for a meaningful deposit held by a title company or attorney. |
| “And/or assigns” | Ask to remove it or require your written consent. |
| Pressure to sign today | Ask for time and have an attorney review the contract. |
| Offer with no inspection, or far above the rest | Expect a later price cut. See the bait-and-switch scam. |
| Unfamiliar closing agent | Use a licensed title or escrow company you choose. |
| Deed or mortgage payment redirection | Do not sign over title or redirect payments before closing; these are hallmarks of foreclosure rescue scams. |
| Long or extendable inspection period | Limit it to a short fixed period. |
| Unclear price or fees | Get the net amount in writing. |
| Unverifiable company or fake-looking reviews | Check the state business registry, the BBB and recent customer reviews. |
| Discouraging a lawyer or title search | Treat as disqualifying. |
How to use the score
- 0 red flags: still verify funds, use a title company and have the contract reviewed.
- 1 to 2: ask the buyer to fix or explain each one in writing before you continue.
- 3 or more: stop and have a real estate attorney review the deal before you sign. Compare other offers.
If you are facing foreclosure
Pressure is highest when time is short. The CFPB and HUD recommend free help from HUD-approved housing counselors. Never pay upfront fees to someone who promises to stop a foreclosure. Read how to sell your house to stop a foreclosure.
Limits of this tool
- It is educational and not legal advice; laws vary by state.
- It cannot detect hidden terms. A lawyer or title company should read the contract.
- A clean score does not prove the buyer is legitimate.
Frequently asked questions
Are all cash buyers scams?
No. Many are legitimate investors and companies. The goal is to separate buyers who can close from those who cannot or who plan to cut the price later.
Who should I report a scam to?
The FTC (reportfraud.ftc.gov), your state attorney general and the BBB Scam Tracker. If wire fraud is involved, also the FBI’s IC3. See our scam guide for details.
Can I back out after signing?
It depends on your state and the contract. An attorney can check cancellation rights, inspection windows and whether anything was recorded against your title.
Should I worry if the buyer is a franchise brand?
The brand is not the contract. The local buyer on the paper is who you are dealing with. Read WeBuyHouses.com vs HomeVestors.
About this tool: built and maintained by the Cash Home Hub editorial team following our editorial policy. Last reviewed November 2026. It runs entirely in your browser, stores nothing and is for education, not legal, tax or financial advice.