A Cash Buyer is anyone buying a property without the need of a mortgage. In theory, the transaction should be more streamlined and easier than a traditional lender-financed transaction. However, it is important for a Cash Buyer to still conduct the same due diligence as would be performed during a mortgage closing.
The duties a settlement agent/attorney such as our firm would perform are as follows:
1. Review the P&S to make sure your interests are protected.
2. Conduct a title exam of the property to ensure there are no liens, mortgages or title defects, etc.
3. Obtain a Municipal Lien Certificate from the town to ensure all taxes and municipal bills are current.
4. Create a settlement statement showing the financial details of the transaction.
5. Handle the disbursement of the funds and make sure that all liens are paid off and officially discharged.
6. File the necessary paperwork at the Registry of Deeds to establish your ownership of the property.
7. Issue an owner’s title insurance policy if requested. You can read more about this on our website.
8. Prepare and record a Declaration of Homestead if the property is going to be a Primary Residence.
A Cash Purchase Closing Attorney may also be able to navigate certain nuances that come with Cash Deals such as:
Proof of Funds Letter
1031 Tax Exchange ramifications
Conflict of Interest with the Seller
Power of Attorney such that the Buyer does not need to attend the closing