How to Close a Cash Real Estate Transaction

Purchasing a home in cash holds a myriad of benefits for both parties. For the buyer, it presents the possibility of a faster closing and allows you a strong negotiating position. The seller, on the other hand, may also face fewer obstacles such as waiting on buyer approval.

Though a cash closing is typically simpler than a loan closing, there are still certain steps that parties should expect to occur, such as preparing a contract, providing for a due diligence period and getting a title search. Here is a step by step guide on a cash real estate transaction.

Remember, you can always refer any questions or concerns to a Real Estate Attorney, Monroe, NC.

Offer to Purchase and Contract

Even with a cash offer, it is important to have all the details of the deal laid out in the offer to purchase and contract. A written contract is required, as verbal contracts for real property are not valid. One benefit of buying property with cash is that closing can typically occur sooner than if a loan closing were involved. A quick closing can be an incentive for the seller to accept your offer. 

Making the Payment

When you mention a cash closing, most people picture walking into the meeting with a briefcase full of money. However, this is not the case. In fact, some states don’t allow their residents to close real estate transactions with real cash.

To pay for your purchase, you will be expected to wire the money electronically to the closing attorney’s trust account. The closing attorney will then disburse all proceeds after all costs are paid.

Closing Paperwork

While cash purchases eliminate the need for lender and mortgage documents, certain legal documents are still necessary to purchase property with cash. Some of the paperwork to expect at the closing include:

  • Written contract- a contract setting forth the property, the price and other closing conditions. 
  • The settlement statement – This is a detailed document indicating the amounts involved in the deal, such as sales price, mortgage payoffs, and pro-rated tax. Your Real Estate Attorney, Monroe, NC, will prepare this paperwork..
  • A title opinion from your attorney and title insurance. 
  • The deed
  • Lien Waiver
  • Seller’s 1099
  • Additional documents that may be necessary to convey good title

Closing the Transaction 

At the “closing table”, the seller and the buyer will sign all necessary paperwork. All parties should arrive at closing with their government issued ID. The seller should bring the house keys and any garage door openers. The buyer should wire the funds prior to the closing. Once all documents are properly signed and notarized, the closing attorney will record the deed from seller to buyer with the county register of deeds. Following recording, the closing attorney will disburse all proceeds.  

Hire a Real Estate Attorney Monroe, NC, for Help

Though a cash closing is typically more streamlined than a loan closing, a real estate attorney is still necessary in North Carolina. A real estate attorney will insure that their client, the buyer, receives good title to the property and will insure that all documents are properly recorded and the proceeds properly distributed.

If you still have more questions about how to close a cash real estate transaction or wish to regain legal help, contact Perry, Bundy, Plyler & Long, LLP.

An expert Real Estate Attorney, Monroe, NC, is always ready to help.



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As many of you are probably aware, the Governor has issued a stay at home order beginning today at 5 pm. As an essential business, we will remain open to serve our clients. During this time, many people will face legal challenges and be in need of services regarding issues such as divorce and child custody, estate planning, business law and real estate matters. We are here to help. In order to follow social distancing protocols, we are offering phone and video conferences and innovative solutions to sign your essential documents in a safe manner. We are all going through a difficult time and things are rapidly changing, but Perry, Bundy, Plyler & Long remains here for you.