Buyer wants to pay all CASH and use HIS attorney? - Posted by Mike (IN)

Posted by Nate on February 28, 2001 at 15:55:22:

I dont know what the SOP is in Indiana, but here in the Washington DC area it is standard for the buyer to designate the attorney that will be handling the closing.

I agree that it’s probably a good idea to have your attorney represent you and read over the deed & other pertinent info, but if the guy will really perform and the funds will be provided, it sounds good to me!

Buyer wants to pay all CASH and use HIS attorney? - Posted by Mike (IN)

Posted by Mike (IN) on February 28, 2001 at 13:37:49:

I have a small rental home with a mortgage balance of $38,400. I owe too much on the home and want out. It is in the inner city and comps are all over the place (from $30 to $45k for same type houses.

I was trying to sell on a lease/option because buyers with good enough credit to buy would not pay my price for that area. However, I came accross a guy that wants to buy it…all CASH for $40k. He wants to do this using HIS attorney to do the closing, etc.

Question; is there anything I need to be concerned about with his attorney doing all of the work? Should I have my own representation? What costs should I expect to incur if any.

Please help!

Re: all CASH and use HIS attorney? - Posted by JPiper

Posted by JPiper on February 28, 2001 at 18:46:13:


I wouldn’t be concerned if the buyer wanted to use his own attorney for the closing. But that’s me.

I don’t know your level of experience…so here’s what I would caution. First, make sure you know what the contract says. You don’t want to get your property hung up for a while on a cash deal where the guy doesn’t have cash, and is just trying to assign it. You might want to insert a clause requiring verification of the cash in your contract. If you don’t know how to do that, get your attorney to add this clause for you in a counter offer. It shouldn’t cost you much…let’s say $50-$100 tops. Require him to give you a copy of his bank account if that’s where the cash is coming from, or a copy of whereever else it may be coming from.

Now if this cash happens to be a loan…get a letter of preapproval. Look to see what the conditions of final approval are. Make sure your contract has a number of days for the buyer to provide this letter, or verification of the cash.

If you’re uncertain about the closing procedures, especially with another attorney handling them, get your attorney to attend with you to make certain the everything is in order. Again, it should cost much…a closing on your part shouldn’t take over a few minutes tops…so you’re not using much of the attorney’s time.


Re: Buyer wants to pay all CASH …? - Posted by Dave Mckee

Posted by Dave Mckee on February 28, 2001 at 14:42:30:

NEVER deal with someone elses atty’ except through your own! But, if it looks good, go ahead and take his offer.