What should I look for in the terms of a cash offer on my property?

The terms of a cash offer should show exactly what has been agreed, what still has to happen before the sale becomes binding, and what could leave you liable for additional costs. Read the offer alongside the proposed contract and ask an independent conveyancer to explain any clause that is unclear before you commit.

• Whether the offer is binding: In England and Wales, an accepted offer is generally not legally binding until contracts are exchanged. In Scotland, the process differs and the written missives form the relevant contract. The paperwork should make clear whether it is an informal offer, a conditional offer, or a formal contractual commitment.
• Conditions attached to the offer: Check whether the buyer can require a survey, valuation, searches, title checks, planning information or other investigations. A cash buyer may not need mortgage approval, but other conditions can still allow the buyer to renegotiate or withdraw.
• Proof that funds are available: Ask for reasonable evidence that the buyer has access to the money required for the purchase. The evidence should be credible and, where appropriate, reviewed by your conveyancer. Be cautious if the buyer is relying on selling another property, obtaining finance or finding an onward investor, as this may not represent an unconditional cash purchase.
• The parties named in the paperwork: Confirm the legal name of the buyer and whether the purchase will be made by an individual, partnership or company. If a company is involved, your solicitor can check its identity and authority to enter the transaction. The name on the offer should correspond with the party expected to sign the contract.
• What is included with the property: The contract or an attached inventory should identify any appliances, fitted items, outbuildings, parking spaces, garden structures or other contents that are part of the agreement. It should also state what you must remove and the condition in which the property is to be handed over.
• Possession and responsibility: Establish whether the buyer expects vacant possession and what happens if a tenant, occupier or licence holder remains at the property. The documents should also deal with responsibility for damage, insurance and the property’s condition between exchange and completion.
• Title and property-specific issues: Check how the terms address restrictive covenants, rights of way, missing documents, lease terms, service charges, rent arrears, planning matters, alterations and boundary disputes. A cash offer does not remove the need to disclose relevant issues or resolve defects in title.
• Leasehold requirements: If the property is leasehold, clarify who will obtain the management information pack, provide notices or settle sums due to the freeholder or managing agent. Check the remaining lease term and any obligations that could affect the transaction.
• Apportionments and outstanding liabilities: The contract should explain how rent, service charges, council tax and similar property-related sums are dealt with up to the handover date. It should also identify any existing charge, mortgage or other financial interest that must be cleared from the sale proceeds.
• Default provisions: Look for the consequences if either party fails to perform. These may cover interest, compensation, forfeiture of a deposit, legal costs or a right to terminate. Your conveyancer should check that the remedies are clear and not disproportionately one-sided.
• Exclusivity or lock-out provisions: Some buyers ask the seller not to negotiate with other purchasers for a specified period. If you agree to this, check its duration, precisely what actions are restricted, and whether you receive any protection if the buyer does not proceed. Do not sign an exclusivity agreement without legal advice.
• Identity and compliance checks: A legitimate transaction will involve identity verification and checks relating to the source of funds. Confirm which documents are required, who will handle them and how your personal information will be used. Requests to transfer money to an unfamiliar account should be verified independently with your solicitor.

Pay particular attention to wording that allows the buyer to alter the agreement after inspection, deduct undefined expenses, assign the contract to another party, or delay the transaction without a clear limit. A clause described as an administration, referral or processing charge should be explained in writing, including when it becomes payable and whether it is payable if the sale does not complete.

Ask for a complete written breakdown of the proposed transaction rather than relying on telephone assurances or messages. Compare the amount you expect to receive after agreed liabilities with the headline offer, and check that every deduction is identified before signing. Keep copies of the offer, amendments, inventory and correspondence.

Your own conveyancer should review the contract, title and completion arrangements, even where the purchaser presents standard paperwork. Do not sign a declaration stating that you have received funds, accepted a liability or confirmed vacant possession unless it is accurate. If an important term is missing, ambiguous or presented as something you must sign immediately, pause the transaction and obtain independent legal advice.