Dispositions

What documents does a cash buyer need to sign to close a wholesale deal?

To close a wholesale deal, a cash buyer primarily needs to sign the Assignment of Contract and potentially a Purchase and Sale Agreement, depending on your closing method. He or she will also sign various closing documents at the title company or attorney's office.

October 15, 2026 · 4 min read

The assignment of contract

This is the cornerstone document for a standard wholesale deal. It legally transfers your rights and obligations as the buyer in the original Purchase and Sale Agreement (PSA) to your cash buyer. Your cash buyer signs this to acknowledge that he or she is stepping into your shoes.

The Assignment of Contract will clearly state the original purchase price, the assignment fee you are earning, and the total amount the end buyer will pay. It also outlines any specific terms or conditions that transfer from the original PSA to the assignee.

Ensure this document is clear, precise, and legally sound for your state and county. It needs to protect your interests while also clearly defining the cash buyer's responsibilities to close the original deal. This is the document that secures your fee.

Original purchase and sale agreement (for review)

While the cash buyer doesn't sign the original Purchase and Sale Agreement between you and the seller, he or she absolutely needs to receive and review a copy of it. This document dictates the terms of the actual property purchase, including the price, closing date, and any contingencies. He or she will be bound by its terms.

The cash buyer needs to understand all the conditions, timelines, and disclosures within that original contract. It's his or her responsibility to perform due diligence based on this agreement. Provide it to him or her immediately upon expressing serious interest.

Transparency here builds trust. The cash buyer needs to see exactly what he or she is agreeing to take on. This allows him or her to confirm the property details, price, and other terms before signing the Assignment.

Proof of funds (from the cash buyer)

Before you even get to signing, your cash buyer will need to provide proof of funds (POF). This isn't a document he or she signs for you, but it's a critical document he or she provides to demonstrate his or her ability to close the deal. You, in turn, may need to provide it to the title company or original seller.

A POF is usually a bank statement or a letter from a financial institution confirming that he or she has the necessary capital. Verify this document carefully. This ensures he or she is a serious buyer who can actually close on the property.

This step is about vetting your cash buyer. Without verifiable proof of funds, you risk tying up a property under contract with a buyer who cannot perform. This can lead to a deal falling apart and wasted time. You can learn more about finding cash buyers at /how-to-find-cash-buyers-for-wholesale-deals.

Closing documents at title or attorney's office

At closing, the cash buyer will sign numerous standard real estate documents required by the title company or closing attorney. These include the deed (to transfer ownership from seller to buyer), settlement statement (HUD-1 or Closing Disclosure), and various affidavits and disclosures specific to the state and county.

He or she may also sign documents related to property taxes, homeowner's association rules (if applicable), and any specific local requirements. These are the final pieces of paperwork that legally transfer the property and finalize the transaction.

As the wholesaler, you typically attend closing to ensure your assignment fee is paid. While you won't be signing most of these buyer-specific documents, understanding their purpose helps you guide your cash buyer through the process. This is not legal advice, consult with a legal professional.

Lead paint, property disclosures, and other addenda

Depending on the age of the property and state regulations, the cash buyer may need to sign lead-based paint disclosures. Many states also require general property condition disclosures, even for as-is sales. These protect the seller but also inform the buyer of known issues.

Any addenda negotiated for the original PSA (e.g., extensions, specific repairs) would also need to be acknowledged by the cash buyer. Make sure he or she has reviewed and understands all these additional forms.

It's your responsibility to ensure the cash buyer is fully informed about all aspects of the property and the transaction. Providing these documents upfront and clearly explaining their purpose prevents surprises at closing.

Questions people ask

Does the seller also sign the Assignment of Contract?

No, the seller does not typically sign the Assignment of Contract. The Assignment is between you (the assignor) and your cash buyer (the assignee). The original seller is a party to the initial Purchase and Sale Agreement, which remains in effect.

What if the cash buyer wants to use his or her own attorney or title company?

That's common. If his or her preferred professional is reputable and experienced with wholesale deals, it's usually fine. Just ensure your assignment agreement specifies who is responsible for closing costs and that your assignment fee is handled correctly at closing.

How can I verify the cash buyer's proof of funds?

Look for a recent bank statement with the buyer's name or entity name and account balance, or a letter from a verifiable bank or lender. You can call the bank (using a number you independently verify, not one on the document) to confirm the letter's authenticity. Always be diligent.