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JldDolphin
Member since 1/07 6929 total posts
Name:
Jen
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Buyer Paying Cash???
My Mom's co-op is up for sale and she already found someone that wants to pay cash. Does anyone know, with a cash deal, whether or not the buyers attorney has to show that they have this liquid money in the bank before they start signing the contract? My Mom doesn't want to sign the contract because then that means taking her co-op off the market. What happens if they then decide that they have to get a mortgage now? My Mom's attorney thinks it's fine. I think he just doesn't want to do too much work because he knows it's a cash deal. Any thoughts? Any advise? TIA! 
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Posted 5/14/08 3:06 PM  |
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Prudential Douglas Elliman Real Estate
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csorisi
My 2 LOVES
Member since 11/05 1984 total posts
Name:
Corinne
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Re: Buyer Paying Cash???
If they want to buy it all cash then the contract would just not be contingent on a mortgage meaning that the potential purchaser would lose their downpayment if for some reason they didn't have the cash to close and/or appleid for a mortgage and got denied.
I would not check a purchaser's liquidity if they claimed they were paying cash and our firm has a lot of all cash deals.
I have drawn up many contracts based on information I received saying purchaser was paying cash--so I made the contract not contingent on a mortgage. Turns out some of them paid all cash and some of them ended up having a mortgage. As long as they bring the money to the table
Message edited 5/14/2008 3:11:33 PM.
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| Posted 5/14/08 3:09 PM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: Buyer Paying Cash???
Cash deals are more common than you think. If you have a good real estate attorney, they will advise you on any safeguards you need. Ask your lawyer what s/he recommends.
My parents have purchased 2 houses for cash and never had to prove liquidity.
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| Posted 5/14/08 3:24 PM |
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JldDolphin
Member since 1/07 6929 total posts
Name:
Jen
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Re: Buyer Paying Cash???
Thanks Corinne! That makes it a lot more clear. So the ones that now have to get a mortgage because maybe they didn't get the cash in time or really didn't have it, now they delay the closing right? But my mom would get the downpayment money if they couldn't get the cash or a mortgage. I just want to make sure I understand right. I guess her lawyer doesn't want to take the time to explain it to her in this way. Thank you for taking the time to explain it to me.
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| Posted 5/14/08 3:26 PM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: Buyer Paying Cash???
Posted by JldDolphin
My Mom's attorney thinks it's fine. I think he just doesn't want to do too much work because he knows it's a cash deal. Any thoughts? Any advise? TIA!
I'd assume your mom's attorney is more worried about malpractice than about lightening the workload.
If, however, you mother doesn't trust her real estate attorney, I recommend getting a new one.
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| Posted 5/14/08 3:27 PM |
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JldDolphin
Member since 1/07 6929 total posts
Name:
Jen
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Re: Buyer Paying Cash???
Posted by Kara
Cash deals are more common than you think. If you have a good real estate attorney, they will advise you on any safeguards you need. Ask your lawyer what s/he recommends.
My parents have purchased 2 houses for cash and never had to prove liquidity.
OK, thanks Kara. I have never know anyone to pay cash, so we don't know how it works and her lawyer just keeps telling her not to worry. But that isn't a fair answer when you are trying to sell your home. Thanks!
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| Posted 5/14/08 3:28 PM |
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bicosi
life is a carousel
Member since 7/07 14956 total posts
Name:
M
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Re: Buyer Paying Cash???
Ditto. We've purchased in cash as well. It shouldn't be such a big deal, so long as all the contracts are in place. It should be quick and smooth.
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| Posted 5/14/08 3:30 PM |
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JldDolphin
Member since 1/07 6929 total posts
Name:
Jen
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Re: Buyer Paying Cash???
Posted by Kara
Posted by JldDolphin
My Mom's attorney thinks it's fine. I think he just doesn't want to do too much work because he knows it's a cash deal. Any thoughts? Any advise? TIA!
I'd assume your mom's attorney is more worried about malpractice than about lightening the workload.
If, however, you mother doesn't trust her real estate attorney, I recommend getting a new one.
Yeah you are probably right about the attorney's worries. I think she trusts him enough. I used the same attorney and we didn't really have these problems with him. He is a little quick to get off the phone, but besides that he did a great job with our house that we bought. thanks!
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| Posted 5/14/08 3:30 PM |
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MommyTeffi
Yummy!!!
Member since 2/06 1827 total posts
Name:
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Re: Buyer Paying Cash???
We paid cash for our home. We did not have to show liquid money prior to signing the contracts. We were selling our house to purchase the new one. However we were also approved for a mortgage as a plan B and showed signed contracts of the home we were selling. It will all work out.
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| Posted 5/14/08 4:33 PM |
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JldDolphin
Member since 1/07 6929 total posts
Name:
Jen
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Re: Buyer Paying Cash???
Thanks for your help everyone!!!
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| Posted 5/14/08 4:47 PM |
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rkoenke
my little piggys
Member since 3/08 4315 total posts
Name:
rachel
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Re: Buyer Paying Cash???
I wish i could find a buyer to pay all cash.
(I wish i could find a buyer... period!)
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| Posted 5/14/08 4:56 PM |
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JldDolphin
Member since 1/07 6929 total posts
Name:
Jen
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Re: Buyer Paying Cash???
Posted by rkoenke
I wish i could find a buyer to pay all cash.
(I wish i could find a buyer... period!)
I told my mom I don't know where she got her luck from because that would have never happened for me.
I'm sure you will sell your house in due time. There is someone out there. GL! It's not an easy time.  
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| Posted 5/14/08 5:06 PM |
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csorisi
My 2 LOVES
Member since 11/05 1984 total posts
Name:
Corinne
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Re: Buyer Paying Cash???
Posted by JldDolphin
Thanks Corinne! That makes it a lot more clear. So the ones that now have to get a mortgage because maybe they didn't get the cash in time or really didn't have it, now they delay the closing right? But my mom would get the downpayment money if they couldn't get the cash or a mortgage. I just want to make sure I understand right. I guess her lawyer doesn't want to take the time to explain it to her in this way. Thank you for taking the time to explain it to me.
You are welcome--glad I could help. It may delay the closing but the purchaser would still have to close within 30 days of the on or about date just like any other closing. If for some reason the purchaser does not have the cash or was unable to get a mortgage then yes your mother as liquidated damages would get to keep the downpayment as long as the contract is a standard contract. It is possible that her attorney does not want to take the time to explain it to her or some attorneys think that if you are paying me to represent you, then I have your best interest in mind. I like to explain everything to a client even if they know the answer and let them tell me I don't need to explain it...in the end it prevents a claim from a client of malpractice
Message edited 5/14/2008 5:38:15 PM.
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| Posted 5/14/08 5:37 PM |
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JldDolphin
Member since 1/07 6929 total posts
Name:
Jen
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Re: Buyer Paying Cash???
Posted by csorisi
Posted by JldDolphin
Thanks Corinne! That makes it a lot more clear. So the ones that now have to get a mortgage because maybe they didn't get the cash in time or really didn't have it, now they delay the closing right? But my mom would get the downpayment money if they couldn't get the cash or a mortgage. I just want to make sure I understand right. I guess her lawyer doesn't want to take the time to explain it to her in this way. Thank you for taking the time to explain it to me.
You are welcome--glad I could help. It may delay the closing but the purchaser would still have to close within 30 days of the on or about date just like any other closing. If for some reason the purchaser does not have the cash or was unable to get a mortgage then yes your mother as liquidated damages would get to keep the downpayment as long as the contract is a standard contract. It is possible that her attorney does not want to take the time to explain it to her or some attorneys think that if you are paying me to represent you, then I have your best interest in mind. I like to explain everything to a client even if they know the answer and let them tell me I don't need to explain it...in the end it prevents a claim from a client of malpractice
Thank you again for taking your time to explain all of this. Very helpful Corinne. You must be very good at your job and I'm sure your clients appreciate your explainations in full.  Thank you!
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| Posted 5/15/08 10:09 AM |
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LeShellem
A new beginning
Member since 2/07 3600 total posts
Name:
LeShelle
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Re: Buyer Paying Cash???
We have a cash buyer and our lawyer did not ask for proof of cash, however my real estate agent did. They needed to prove they had the cash before they would send in the paperwork to my lawyer.
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| Posted 5/15/08 11:31 AM |
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ILJ619
LIF Adult
Member since 6/06 1985 total posts
Name:
Irene
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Re: Buyer Paying Cash???
When I bought my 1st coop I paid cash. The seller's attorney didn't require any paperwork but the coop board did. They needed proof I had the money in my bank account and also wanted to see my w-2s and bank statements, savings etc for like 5 years i think to prove how I got the money. 
ETS the seller loved me b/c without a mortgage it was a much faster process I just had to get the paperwork in order. I'm sure if your attorney requests this type of paperwork/proof they dont need a mortgage it should all go well.
Message edited 5/15/2008 4:53:10 PM.
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| Posted 5/15/08 4:51 PM |
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