Does a Cash House Buyer Need a Solicitor?

Will my cash house buyer need a solicitor?

We breakdown what you need to know

If you’re selling your house, you may have had someone approach you who describes themselves as a cash house buyers and wondered what they actually are and whether or not selling to a cash buyer is a good idea.

You may know selling to a cash buyer means a different selling process, but exactly how different is it? Does a cash house buyer need a solicitor? What do I need to check when dealing with a cash buyer? Is a cash buyer right for me?

We’ve written a guide to answer all these questions for you and you can quickly navigate through using the table of contents below:

What is a cash house buyer?

A cash house buyer, or cash buyer in short, is an individual or company who is able to buy a property outright in cash, without the need to acquire a mortgage or sell another property first. As a result of this, a cash buyer will be your best bet if you’re wanting to get the quickest possible sale.

A common misconception about cash buyers is people believe themselves to be a cash house buyer as they’re getting a mortgage or selling a property, meaning they will have the funds to purchase a property. This isn’t the case as, in order to be considered a cash buyer, you mustn’t be reliant on another sale in order to fund your property purchase.

As we mentioned, cash buyers tend to be the most desirable buyer for a seller due to the faster nature of selling to them, with a reduced amount of paperwork. The fact that a cash buyer is a chain free buyer also significantly reduces the chances of the sale falling through.

In order to find a cash house buyer on the open market, you can have your property listed on property portals as ‘cash buyers only’ or you can go to a specialist cash house buying company, like ourselves.

How does it differ when selling to a cash buyer?

Now we’ve talked you through the traditional house selling process, how does this differ when selling to a cash buyer? And what ultimately makes selling to a cash buyer more desirable?

Well, when selling to a cash buyer, you take out one of the most time-consuming parts of the process – your buyer acquiring their mortgage. Waiting for your buyer to get mortgage approval can take weeks, if not months, adding a large amount of time to the house selling process.

On top of this, a buyer not getting mortgage approval is one of the biggest reasons why a property sale will fall through, so by selling to a cash buyer you’re cutting out that risk completely. Also, naturally, cutting out a step will speed up the selling process, meaning you can go from offer accepted to contracts exchanged in a matter of weeks.

Selling to a cash house buying company also means the process differs again, as you completely cut out the ‘estate agent and open market’ stage and cut straight to them providing you with an offer.

A cash house buying company, like ourselves, will cover all the costs for you too, meaning you won’t have any estate agent fees or solicitors costs. We will also handle the whole process for you, meaning you won’t have any confusing paperwork to deal with, making the whole selling process a lot easier for you.

As most cash house buying companies will set up to complete your house sale as quick as possible, most companies will be able to buy your house in as little as 7 to 14 days.

Does a cash house buyer need a solicitor?

With a cash house buyer, the selling process is changed quite significantly. The conveyancing process is no different – as a cash buyer doesn’t require a mortgage and some don’t bother with searches and a survey this takes out two huge steps, leading you to question whether a cash buyer actually needs a solicitor?

Well, whilst a cash buyer does mean a large amount of the selling process is different, there’s no difference in that a cash buyer will still require a solicitor just like a traditional buyer would.

A cash buyer will still need a solicitor to take care of the legal proceedings, as a buyer isn’t allowed to directly speak to a seller’s solicitor, and it’s still encouraged that cash buyers get a survey and searches on the property they’re buying.

Whilst there’s no obligation for a cash buyer to get this, it’s still encouraged as it’s important to know the condition of the property being bought and also the valuation of the property according to an external surveyor, in order to be sure the cash buyer isn’t paying too much.

Property surveys and searches will also highlight any issues that are important for the buyer to know about that could potentially lead to negotiations on the sold price.

Even if a cash buyer decides they don’t want the searches and a survey, they will still need a solicitor to complete all the necessary paperwork, communicate with the seller’s solicitor and organise the exchange of contracts and completion.

If you choose to sell to a cash house buying company, like ourselves, we have an in-house progressions team who will complete the full legal process for yourself and us, meaning the conveyancing process will be sped up as there are no time delays in communication.

What to check when dealing with a cash buyer?

When selling to a cash buyer, whether it’s an investor or a company, there are a few things you will need to check first to make sure you’re confident they’re the best option for you:

• Ask for proof of funds

• Check for any tie-in clauses

• Ask if they will be getting searches and a survey

• If you sell to a cash house buying company, ask if they’re willing to cover the legal fees if you decide you want to use your own chosen law firm

• Ensure they’re not requesting a large amount of discount (25% or more)

• Have all paperwork checked by an independent solicitor

• If you’re selling to a company, check whether they will be buying your property directly or if they’re passing on your details to a third-party buyer. A lot of companies will act as though they’re buying your property themselves, but they’re actually just acting as ‘lead generation’ and are simply passing on your details

• Also with a cash house buying company, ask for them to tell you about their valuation process. If they don’t want to tell you about it, then you will need to proceed with caution as there’s a likely chance they’re undervaluing your property significantly

• Ask how quickly they’re able to complete and whether there will be any potential delays

• If you’re selling to a cash house buying company, check that they’re members of The Property Ombudsman and the National Association of Property Buyers. This will mean there are certain rules and procedures that must be stuck to and will mean you as a seller has a layer of protection

• Ask to be made aware of the consequences should either party pull out

• Finally, with a cash buying company, make sure you check out their reviews. Look on the most trusted platforms, such as Trustpilot, and look for ‘approved’ reviews to be sure the reviews are from real customers. Make sure you read a mix of both the positive and negative reviews to get a better idea of the service and the potential pitfalls

Who are cash buyers right for?

We’re always open and honest about the fact our quick ‘cash for house’ service isn’t for everyone, so it’s important you decide if it’s right for you.

The main reason a cash buyer won’t be right for all is because cash buyers are typically looking to pick a property up for a discount off the market value – something that not everyone wants to or can accept, depending on the equity in the property.

On the other hand, however, selling to a cash buyer can be really useful for those who are looking for a super quick sale and don’t have the time to let their house sell on the open market with an estate agent.

We’re very experienced in the quick cash sales process and we generally find this service is beneficial for the below circumstances in particular:

What about cash house buying companies?

We’ve touched on cash house buying companies a few times throughout this article but after doing some research online you may come across people warning you to avoid selling to them – but why?

A lot of the negative press that surrounds cash house buying companies comes from a lack of understanding of the service. We will always be open and honest about our service and, as cash buyers, we simply can’t offer you the full market value for your property – how much we do offer you will be dependent upon each individual’s property situation, including its location and condition, but any offer we make is completely no obligation and it will only take a quick conversation to give you a ballpark figure.

As a general statement, you’re safer using a cash house buying company than using an independent cash buyer, providing you do your research. As we mentioned earlier, you should check a company’s reviews and check to see if they are members of The Property Ombudsman and the National Association of Property Buyers, as they add more layers of protection for you as a customer.

A cash house buying company, like ourselves, will also conduct all the paperwork for you and handle organising a survey, should you need one, meaning it’s a hassle-free process for the seller.

Attracting an independent cash buyer can be difficult and you’ll have to pay an estate agent to market your property. Going down the route of selling your house to a cash house buying company, you don’t need to put your property on the market, and they can operate a lot quicker due to pre-existing relationships with solicitors and surveyors.

Also, if you choose to sell your property to us, we will cover all the fees for you – no legal fees, no estate agent fees, nothing for you to pay! This means that whilst the offer may be lower than you may receive on the open market, you could actually end up with more, as you’ve not had to pay anything to sell.

Why choose us?

If you have decided that a cash buyer is the right option for you, then you may want to consider seeing what a cash house buying company can offer you. There are lots of these types of companies out there though, so why would you choose to sell to us?

Well, we’re more than just a standard cash buying company. The Property Buying Company is owned and operated by property professionals, founded in 2012, and with over 50 years of combined experience, you can be sure you’re in safe hands.

Unlike a buyer on the open market, we’re able to complete the sale in a timescale of your choosing, with us having the ability to complete in as little as 7 days.

As we touched on earlier, we’re also members of The Property Ombudsman and the National Association of Property Buyers, allowing you to feel confident we will follow rules and regulations, whilst also meaning there are extra layers of protection for you as a seller.

We’re also very highly rated on major review platforms, with us receiving an ‘excellent’ rating on Trustpilot, with over 1,000 reviews.

As well as this, we also understand what it’s like to sell a property and all the stresses that come along with it, so we will always be up for a chat to listen to your worries, and we will handle the whole process for you, making it hassle-free.

We will always be open and honest about our process and service – we will tell you upfront what we can offer for your property, and we will keep you constantly up to date on where we are in the process, including any issues we face and how we will do our best to overcome them for you.