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Why read the purchase agreement closely?
Because a cash offer is only as good as the contract behind it. Two offers at the same price can be completely different deals once you read the fine print. One closes in 10 days. The other lets the buyer walk away, sell your contract to a stranger, or come back in three weeks with a lower number. Here are the clauses to look for, and how our cash purchase handles each one.
1. The assignment clause
What to look for: “Buyer: ABC Home Solutions LLC and/or assigns.”
That phrase lets the buyer sell your contract to anyone. It’s the core of wholesaling. The person who shows up at closing may be someone you’ve never heard of, and the wholesaler pockets the difference between your price and what the end buyer pays.
Our version: the buyer is us, with no assignment language. We never assign contracts.
2. The inspection escape hatch
What to look for: “This agreement is contingent upon Buyer’s satisfaction with an inspection of the property within 21 days.”
A long inspection period with “satisfaction” language lets the buyer back out for any reason, or use a “discovery” to cut your price. Some buyers tie up your house for weeks while they shop the contract.
Our version: no inspection contingency. We walk the house before we write the offer.
3. Tiny earnest money
What to look for: “Earnest money: $10” or “$100 to be delivered within 10 days.”
Earnest money is the buyer’s skin in the game. A token amount means they lose nothing by walking away. It should be meaningful and held by a title company, not by the buyer.
Our version: a real deposit, held by the title company named in the contract.
4. An open-ended closing date
What to look for: “Closing on or before 60 days, or at a date chosen by Buyer.”
That gives the buyer time to find an end buyer while you keep paying the mortgage, taxes and utilities.
Our version: a fixed closing date you choose.
5. A financing contingency on a “cash” offer
What to look for: “Contingent on Buyer obtaining financing.”
Then it isn’t a cash offer.
Our version: no financing contingency. We buy with our own funds and show proof before you sign.
Side by side
| Clause | Red-flag version | Our cash purchase agreement |
|---|---|---|
| Buyer | “and/or assigns” | Us, no assignment |
| Inspection | 14 to 30 days, “Buyer’s satisfaction” | None; walkthrough comes first |
| Earnest money | Token amount, held by buyer | Real amount, held by title company |
| Closing date | “On or before,” buyer’s option | Fixed date you choose |
| Financing | Contingent | None |
| Price after signing | “Subject to final walkthrough” | No renegotiation over known condition |
| License disclosure | None | Ryan’s MN license disclosed in writing |
Other things to read carefully
- Who pays closing costs. Ours: we do on cash sales.
- What happens to personal property. Ours: leave what you don’t want.
- Possession date. When you have to be out. Ask for a short stay after closing if you need it.
- Title company. It should be named. You can look it up.
- Default terms. What happens if either side doesn’t close.
What if you change your mind?
Before you sign, nothing is binding. After you sign, it depends on the agreement’s cancellation terms, so read them first. Ryan walks you through them line by line. If you’re facing foreclosure, Minnesota’s Minn. Stat. ch. 325N gives additional protections in certain sales to buyers; see foreclosure rescue scams.
The short checklist
Before signing any cash purchase agreement, confirm: no assignment, no inspection escape hatch, real earnest money at a title company, a fixed closing date, no financing contingency, and proof of funds in the buyer’s name. Then run the full Wholesaler Test. Have an attorney read it if you want. We’d rather you did.