Dispositions

What documents a cash buyer needs to review before signing an assignment contract

Before a cash buyer signs an assignment contract, he or she needs to review specific property and deal documents to assess the investment accurately. Providing these documents upfront builds trust and speeds up the buyer's due diligence process.

October 31, 2026 · 3 min read

The purchase and sale agreement

Your original purchase and sale agreement with the seller is the foundation of the deal. The cash buyer needs to see this document to understand the terms you've agreed to, including the purchase price, closing date, and any contingencies.

Ensure any sensitive seller information is redacted if you are concerned about direct contact. The buyer needs to verify the original agreement's validity and ensure it is assignable.

Preliminary title report and lien search

A preliminary title report is crucial. It gives the cash buyer an overview of the property's ownership history, any existing liens, easements, or other encumbrances that could affect clear title. This is where he or she identifies potential issues that might increase his or her risk or cost.

If there are any outstanding liens or judgments, the buyer needs to know how these will be cleared before closing. This transparency prevents surprises later in the process.

Property photos and repair estimates

High-quality photos of the property, inside and out, are essential. They provide the buyer with a visual understanding of the property's condition without needing an immediate visit. Supplement these with a detailed list of necessary repairs and, if possible, estimated costs.

Be honest about the property's condition. If you have a contractor's repair estimate, share it. This helps the buyer quickly calculate his or her own estimated after-repair value (ARV) and potential profit.

Proof of funds verification (from the cash buyer)

While this is a document you receive, it is vital to the process. Before you invest too much time sharing detailed property information, ensure the cash buyer can actually perform. Request a recent proof of funds letter or bank statement showing he or she has the capital available.

This step protects your time and ensures you are working with a serious buyer who can close on the deal. Do not proceed without verifying this.

Comps and ARV breakdown

Provide the cash buyer with your comparative market analysis (CMA) and your after-repair value (ARV) calculations. Show him or her the recent sales of similar properties in the area that support your projected value.

Explain your reasoning for the ARV, including any adjustments for renovations. This data helps the buyer quickly validate the deal's potential and his or her own investment strategy.

The assignment contract draft

Present a draft of the assignment contract. This document outlines the terms of your agreement with the cash buyer, including the assignment fee, the new closing date, and any specific clauses relevant to the transaction.

Allow the buyer to review this document thoroughly. He or she may have his or her own attorney review it, which is standard. Having it ready shows you are organized and serious about moving the deal forward efficiently.

Questions people ask

Do I need to show the cash buyer my original contract with the seller?

Yes, it is standard practice to show the original purchase and sale agreement. The cash buyer needs to confirm the terms you agreed to with the seller, including the purchase price and closing details.

What if the title report shows an issue?

You need to disclose any issues on the title report to the cash buyer. Transparency is key. Discuss how these issues will be resolved before or at closing, or if they are deal-breakers for the buyer.

Should I get the buyer's proof of funds before sending documents?

It is a smart practice to verify the buyer's proof of funds before sending extensive deal documents. This ensures you are sharing sensitive information only with qualified and serious investors.

How much detail should I give about repairs?

Provide as much detail as you have, including photos and any professional estimates. Be honest about the property's condition to help the buyer make an informed decision and trust your assessment.