Question Details

David, Home Buyer in Los Angeles, CA

What does an all-cash offer mean?

Asked by David, Los Angeles, CA Fri Apr 18, 2008

Does it mean I pay the house price all with my own money? Or can I put down say 30% and have my bank finance the rest, is that stll an all-cash offer? THanks

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All cash does mean you will not seek financing using the property you intend to buy as collateral. You can however buy it with borrowed money if you already have credit established ie a credit line on another property or a personal line of credit. Realise though if your contract is cash and this source of funds should disappear you could be opening yourself up to a lawsuit. Seller may also request proof of funds or proof of credit line and request same frozen.
0 votes Thank Flag Link Fri Apr 18, 2008
"All-cash" is a widely misunderstood and misused term as it relates to real estate transactions. When sellers are looking for an all-cash offer, they are looking for an offer that does not require financing from the seller, and that does not contain any contingency for financing from any other source. It means that if the buyer does not deliver all cash to the seller on or before the stipulated closing date, then the buyer agrees to forfeit their good-faith deposit to the seller.

I have yet to see a real estate contract that restricts a buyer's ability to obtain financing as part of their source of cash to the seller. In an all-cash transaction, however, the seller has no obligation to participate in the financing activities of the buyer, and has every right to keep the buyer's deposit should they fail to deliver the full amount in cash at closing, on or before the closing date.


David Weiner
Principal
Trilion Capital
http://www.trilioncapital.com
0 votes Thank Flag Link Wed Sep 28, 2011
Thank you. Finally a response that actually makes sense ...
Flag Fri Nov 6, 2015
An all cash offer is when ther is no bank involved with the closing
0 votes Thank Flag Link Fri Apr 18, 2008
All cash means all cash...no financing.
Web Reference: http://www.iansellsnola.com
0 votes Thank Flag Link Fri Apr 18, 2008
http://thitruongdatviet.com/
Flag Thu Jul 9, 2015
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