# paying cash for real estate



## Steve in PA (Nov 25, 2011)

I'm finally in a position to not need to go to the bank for cash to buy land. If I am buying it person-to-person I will probably need the services of a Real Estate Attorney.

Does anyone have experience and can share this process?


----------



## FarmerKat (Jul 3, 2014)

We purchased our house this way. We agreed with the sellers on an attorney to do the closing. We did not feel the need to have two separate lawyers as we just drew a simple agreement ourselves and gave them a deposit. The attorney just handled the closing paperwork, paying taxes and fees, and recording with the courthouse. We agreed that the property would be sold "as is" but we would be able to do any inspections we needed. (The sellers were really cooperative so that helped.)

Our next cash purchase involved a property listed with a realtor. We contacted the listing agent directly, he used a standard real estate contract to submit the offer to the seller. We requested for our attorney to do the closing, title search, etc. We had to do some due diligence regarding the property so we made our offer contingent upon certain things (zoning, preliminary soil map, etc.) We advised the realtor when we were going to be on the property or if someone else was going to be on the property on our behalf. 

Since our bank is an hour's drive away, we gave a personal check to our attorney few days before the closing and he took care of the rest. Our attorney communicated with the listing agent and the seller (who was out of state) to get their side of the paperwork signed. Then we just met for the closing at his office along with the listing agent. The agent got to verify that a check was mailed to the seller and got to pick up his commission check.


----------



## TnAndy (Sep 15, 2005)

Make sure you buy a title insurance policy for YOU. A closing attorney can handle this. Typically, the bank will require one to protect their mortgage value, but you should have one as well.....even more so as you are paying cash. A current survey is also a good thing to have done if there is any question about property lines.


----------



## Mickbear (Feb 8, 2016)

Steve in PA said:


> I'm finally in a position to not need to go to the bank for cash to buy land. If I am buying it person-to-person I will probably need the services of a Real Estate Attorney.
> 
> Does anyone have experience and can share this process?


very smart,i have done this several times in the past. ask around and get a good real estate attorney and you will be fine


----------



## flewism (Apr 2, 2007)

Steve in PA said:


> I'm finally in a position to not need to go to the bank for cash to buy land. If I am buying it person-to-person I will probably need the services of a Real Estate Attorney.
> 
> Does anyone have experience and can share this process?


 By far the best way.


----------



## Tomjracer (Jan 30, 2015)

Not sure about PA, but in Michigan most closings are handled at a Title Insurance office. They will review for liens and issue a Warranty Deed and Title Insurance policy (as TnAndy said this is a very good idea as well as a survey). The closing fee in Michigan is $300-500 on a purchase, however that fee can be negotiable.


----------



## cfuhrer (Jun 11, 2013)

Be careful.

I don't know the specifics of his situation but an associate of my husband tried to pay cash for a house and was told he would not be able to because of some anti-terror something or other.

The seller literally would not accept cash, even in the form of certified funds ie cashier's check. It was "finance-or-no-sale".


----------



## FarmerKat (Jul 3, 2014)

cfuhrer said:


> Be careful.
> 
> I don't know the specifics of his situation but an associate of my husband tried to pay cash for a house and was told he would not be able to because of some anti-terror something or other.
> 
> The seller literally would not accept cash, even in the form of certified funds ie cashier's check. It was "finance-or-no-sale".


Was there an attorney or a title agency involved in the closing? 

I would guess that there are very few sellers that would not accept a buyer without financing. 

When we paid for our properties, we paid to the attorney and the attorney wrote checks to the proper parties - seller, real estate commission, recording fees, etc. So our check never went to the seller directly. Even if we were using financing, the seller would still get a check from the attorney/title company, not from the bank that will hold the buyer's mortgage.


----------



## Nevada (Sep 9, 2004)

TnAndy said:


> Make sure you buy a title insurance policy for YOU.


I never got a title policy on my home. It's not required without financing.

In my case it was a no-brainer because I bought it at a public auction (trustee sale). By law, a trustee deed stops a lot of recourse for title disputes. It's almost like having a quiet title judgment on the property.

The catch is that no title company will issue a policy until after 2 years after the auction. That's because the foreclosed owner has certain rights to challenge the foreclosure for 2 years. I bought it 6 years ago, but I never got a title policy.


----------



## Jena (Aug 13, 2003)

I have found that the process of buying real estate varies considerably from state to state. I would want to be familiar with how they do things wherever you are buying and then act accordingly. I bought property for cash, but had a realtor involved (it was a HUD foreclosure). Another time, we just did it ourselves with our attorneys looking things over.


----------



## jr23 (Sep 3, 2013)

cfuhrer said:


> Be careful.
> 
> I don't know the specifics of his situation but an associate of my husband tried to pay cash for a house and was told he would not be able to because of some anti-terror something or other.
> 
> The seller literally would not accept cash, even in the form of certified funds ie cashier's check. It was "finance-or-no-sale".


when you sell something for large ammount of cash when depositing the bank may require a form sent to the irs,which they may do even if the check was d=from a morgage co, it just sy=tates wher the funds came from.no if it was tens of thousands in currency there might be a red flag but you would have paperork to back up the sale. this seller took too much conspiracy theory to heart sales comes down to paperwork and property has documentation for both seller and buyer


----------



## jr23 (Sep 3, 2013)

Nevada said:


> I never got a title policy on my home. It's not required without financing.
> 
> In my case it was a no-brainer because I bought it at a public auction (trustee sale). By law, a trustee deed stops a lot of recourse for title disputes. It's almost like having a quiet title judgment on the property.
> 
> The catch is that no title company will issue a policy until after 2 years after the auction. That's because the foreclosed owner has certain rights to challenge the foreclosure for 2 years. I bought it 6 years ago, but I never got a title policy.


remember all states re law is slightly different,as is auction sale. but in most cases title ins is cheap insurance it cover back tax, mechanix,mortgage, property line disputes. and i my old home several yrs later the county found a tax that went unpaid.ins covered it. and where i live now there was a case a lot was bought and the owner built a house on it city permitted it all turned out it was the wrong lot without title ins he could be out the cost and the home i dislike lawyers and agents and most ins but this is one i would not skip and do not trust just a lawyers title search since it does not cover unfound later claims
but i bought cash here and its the best way no mortgage is great


----------



## Nevada (Sep 9, 2004)

jr23 said:


> when you sell something for large ammount of cash when depositing the bank may require a form sent to the irs,which they may do even if the check was d=from a morgage co, it just sy=tates wher the funds came from.no if it was tens of thousands in currency there might be a red flag but you would have paperork to back up the sale. this seller took too much conspiracy theory to heart sales comes down to paperwork and property has documentation for both seller and buyer


Well, I didn't really show up at the auction with a pile of cash. A cashier's check worked fine, and there's no reporting requirement because the check will leave a paper trail. I call that cash because I was paying for it in full with no loan.


----------



## Steve in PA (Nov 25, 2011)

Wow, I'm surprised this thread is still going. We decided to pass on the property in question.


----------



## lurnin2farm (Jun 10, 2012)

The anti terror law is an interesting one that to my knowledge has never been challenged. 
The jist of it is anything over 10k in cash needs to be reported supposedly. Although that requirement does not exist for private individuals. 

As for not accepting cash or a bank check. I'm not sure anyone can refuse to accept cash just because its cash. A business may have a legal obligation to report it but as far as I know they cant just outright refuse it. Our currency in circulation says it is good for all debts public and private. If someone refuses to accept cash they could be sued. 
I once went to the bank about 8 years ago and made a cash deposit for 10k. The bank manger came out and said if I deposit one dollar less they dont have to do any paperwork. I said ok, do the paperwork. I had nothing to hide but the bank was ------ they had to do the paperwork. I think everyone with 10k or more in the bank should withdraw it once a week and redeposit it the next day. Eventually the banks will get tired of having to do all the paperwork all the time if enough people actually did it. .

The big problem I have with it is it isnt adjusted for inflation. When the law first went into effect you could buy a new car for less than 10k. If it was adjusted for inflation the amount would be more like 30-40k. 

Back in 07-08, when the gov came out and said we had to give the banks 700 billion or there would be anarchy in the streets, I decided no more banks for me. I will be selling my house soon and its paid for so when I close I will be asking for cash. If they refuse and bring me a check I will be cashing that check at the bank its drawn on. 
At the end of the day a check is nothing more than a demand on the bank for the depositors money which they are supposed to be holding. To many people seem to forget that fact.. 
One time I was in PA and sold some silver. I accepted a check for some of it because it was a local bank. When I went to the bank they told me they couldn't cash it. I had plenty of ID but they refused. After speaking to a manager they told me if I paid them 5 bucks they would cash it. I told them to pound sand. The check was a demand for funds deposited in their bank by the customer. Since the rest of the customers in line were hearing all of this they finally relented.


----------

