Most cash buyers are exactly what they say they are. A few are not, and the ones who cost sellers the most are rarely outright criminals. More often they are new investors who sign contracts they cannot close, hoping to find someone else to buy the house before their option period runs out. The checks below protect you from both.

1. Know exactly who is buying

The contract should name the buyer: a person, or a company you can look up. For a Texas company, the Texas Comptroller’s taxable entity search shows whether it exists and is active.

Then look for that specific buyer’s track record: reviews from sellers, how long they have been in business, and whether people you trust have closed with them. A national brand name on a mailer tells you who advertised, not who will buy your house. We cover that in local buyer vs a national franchise.

2. Ask how they will pay

“Cash” can mean the buyer’s own money, a hard money loan, a private lender, or funds from another investor at closing. All of those can close. What matters is that the buyer tells you which one, and can show it.

Proof of funds is usually a recent bank or lender letter in the buyer’s name. If the letter names someone else, ask why.

3. Follow the earnest money

In Texas, earnest money is deposited with the title company named in the contract, usually within a few days of signing. Call the title company yourself, using a number from its own website, and confirm the deposit arrived.

A very small deposit paired with a long option period is a warning sign. It means the buyer can walk away cheaply while your house is off the market.

4. Ask whether they will close or assign

Many contracts let the buyer name “and/or assigns” as the buyer. That allows the contract to be transferred to someone else before closing, which is common in Texas. The problem is a buyer who signs with no plan or money to close and spends the option period shopping your contract to other investors.

Ask the question directly: will you close on this house yourself, and if you assign the contract, will the price or the closing date change for me? A serious buyer gives you a straight answer.

Protect yourself with a disclosure addendum

We wrote a short contract addendum for sellers who want that answer in writing. It asks the buyer to state how they will fund the purchase, rules out undisclosed pass-through funding, and confirms the buyer’s intent and authority to buy. Any seller can ask any buyer to sign it, including us. Contact us and we will send you a copy.

Scam warning signs

Walk away, or slow down and verify, when a buyer:

Asks you to pay anything up front, for an appraisal, an “application” or a “processing fee”.
Wants you to sign a deed anywhere other than at a title company or with a title company’s notary.
Sends wiring instructions by email or text. Confirm any wire by calling the title company at a number you looked up yourself.
Pressures you to sign the same day, or discourages you from getting other offers.
Will not name the title company, or names one you cannot find.

How we handle each of these

We close through established Dallas-Fort Worth title companies, deposit earnest money with the title company named in the contract, and tell you how we will pay. You never pay us anything, and we pay the traditional seller closing costs. If you are comparing offers, we are glad to look over another buyer’s contract with you, even if you end up selling to someone else.