Thread: Cash buyer help!

Originally Posted by MortgageMan23

I am a newbie at this and need some advice from some realtors. A friend of mine is selling a condo of his in FL. to a cash buyer. He does not have a real estate agent, he found the buyer himself. Now, if he wants to sell to the buyer, what are the steps he needs to take? I know he doesn't have to wait for mortgage contingencies, appraisals and all that. Is all he has to do is set up a contract and transfer title to new owner? Or how does it work? How would a real estate agent handle an all cash transaction? What are the steps needed to do in order to close the deal?
Thanks for any help in advance!

Now, when you say "a friend of mine".... do you mean you? Ha, just kidding. I bet any real estate agent here would say that you need an agent to close the deal! But, that's not true, sorry guys. The hard part is already done.

My first concerns would be -

1.) The buyer should invest in an appraisal, an inspection and an attorney. A good attorney could also handle the paperwork that would otherwise be done by the real estate agent, like the purchase & sale agreement.

2.) Does the seller have a mortgage? If so, the closing could be scheduled at the seller's bank if it is a cash sale.

3.) If the seller has no mortgage, then the closing could be held at the attorney's office.

4.) I would advise the seller to employ the services of an attorney as well.

This is a good one, I hope others will chime in.

Thanks for the quick response RehabEd! The advice is for my friend actually, hah, however he asked me since I am in the mortgage business but fairly new to the entire industry. Now, I figured they both need attorneys and the attorneys can draw up the contract and order title. But is this basically the gist of it?

Oh and btw, the buyer is paying all cash and the seller does not have a mortgage, property is paid off!

I would put something in the contract that gives the buyer a certain amount of days to show "proof of funds" to close. 3 business days?

If I was the buyer, I would ask for a years worth of board minutes to make sure no lawsuits were pending or pending assesments. Are the due's covering expenses of the association? Are the condo's reserves adequate?