How can I verify the legitimacy of a cash buyer before proceeding with a sale?

A legitimate cash buyer should be able to explain who is purchasing the property, how the transaction will be funded, which solicitor will act, and exactly what you will be required to sign and pay. Verification involves checking the buyer’s identity and authority, testing the terms of the proposed sale, and ensuring that an independent conveyancer represents your interests.

Confirm who will appear on the contract. Some property businesses introduce sellers to another company, an individual investor or a special-purpose company created for one transaction. Ask whether the organisation making the offer will be the legal buyer, or whether it intends to nominate or assign the contract to someone else. The name on the offer should match the name on the sale agreement and the conveyancer’s instructions unless the arrangement is clearly explained and accepted by your solicitor.

Ask for the full name and contact details of the person responsible for the transaction, together with the name of the conveyancing firm acting for the buyer. Contact the conveyancer independently using details obtained from a trusted source rather than relying solely on an email signature. A genuine transaction should have a clear chain of responsibility rather than unexplained changes of contact or pressure to deal only through messaging applications.

Read the offer as a set of conditions, not just a headline figure. Check whether the price can be reduced after a survey, valuation or legal investigation, and whether the buyer can withdraw without a defined reason. Establish:

• whether the offer is subject to a survey, valuation, mortgage or further approval;
• whether any fees, deductions or charges will be taken from the stated price;
• who pays legal, valuation and administration costs;
• whether the buyer expects an exclusivity period or an option to purchase;
• what happens if the agreed completion date is missed; and
• whether the agreement permits the buyer to transfer its rights to another party.

Request these points in writing. A price that appears attractive can be misleading if the contract gives the buyer broad powers to renegotiate or deduct costs.

Check the proposed conveyancing process. Your solicitor should confirm that the contract identifies the correct property, ownership details, fixtures and fittings, agreed price and completion arrangements. They can also explain restrictions on the title, outstanding charges, lease terms and any planning or tenancy issues that could affect the sale. Do not sign a contract, declaration or power of attorney that you do not understand, even if you have already accepted the offer verbally.

Be particularly cautious if you are asked to sign documents that transfer control of the property before completion, give another person authority to sell it, or create an option lasting for an unclear period. Those documents may have consequences different from an ordinary purchase contract. Independent legal advice is important where the buyer proposes an unusual structure or says that the paperwork is standard and does not need explanation.

Check payment arrangements carefully. A legitimate buyer should provide a clear explanation of when the purchase money will be sent and how the completion funds will be handled. Completion money is normally dealt with by the conveyancers. Do not send an upfront payment to secure an offer unless your solicitor has verified the purpose, recipient and contractual basis. Treat requests to pay a personal bank account, use cryptocurrency, or transfer money urgently because of a last-minute change as serious warning signs.

Bank details can be intercepted or altered, so confirm them with your solicitor using a telephone number already held in their records. Never rely solely on new bank details supplied by email. Keep copies of the offer, contract, messages, invoices and payment instructions so that your legal adviser has a complete record.

Look for consistent and professional conduct. Warning signs include refusal to identify the legal buyer, unexplained changes to the price, pressure to sign immediately, claims that independent advice is unnecessary, vague answers about deductions, or reluctance to put promises in writing. A buyer who will not allow reasonable time for legal review may be trying to prevent you from identifying unfavourable terms.

Finally, compare the buyer’s answers with the contract rather than relying on verbal assurances. If the written terms do not reflect what was discussed, pause the transaction and ask your conveyancer to resolve the discrepancy. You can proceed only when the buyer’s identity, authority, funding arrangements, contractual terms and payment process are sufficiently clear for you to make an informed decision.