Table of Contents
Before you sign anything, ask three things: who the buyer is assigning the contract to (if anyone), whether their proof of funds actually matches the name on the contract, and how much non-refundable earnest money they’re putting down. Three questions. Maybe ninety seconds of conversation. That’s usually all it takes to tell a real buyer from someone still hoping to find one.
A few years back, I sat with a woman in Dundalk who’d already signed a contract before she called me. Sweet lady, inherited the house from her mother, just wanted it gone. She’d taken the first offer that came in, no questions asked, because the guy on the phone sounded confident and the number looked fine on paper.
Three weeks later, radio silence. Then a call; different company, same house, lower number. Turns out her original “buyer” had been trying to flip the contract the whole time and finally gave up. She lost almost a month during a probate timeline she couldn’t really afford to stretch out.
Here’s the thing: she wasn’t foolish. She just didn’t know what to ask. So let’s fix that. Three questions, asked before you sign, and you’ll know almost everything you need to.
Question 1: “If You’re Assigning This Contract, Who’s It Going To?”
Not “are you closing or assigning” — that’s a yes-or-no question, and it lets people off the hook with a technically-true non-answer. Ask it this way instead: if the contract gets assigned, is it going to a company they personally own, or to an outside buyer they haven’t even found yet?
There’s a real difference between those two answers, and it matters. Plenty of legitimate buyers structure their business with a marketing entity that assigns to a related closing entity; no fee, no stranger, same people the whole way through. That’s normal. What you’re actually listening for is hesitation, or an answer that dodges the “who” entirely.
And you’re not just relying on their honesty here, either. As of October 2025, Maryland law requires wholesale buyers to disclose in writing, before you sign, if they intend to assign your contract. So this question isn’t just good instinct anymore, it’s backed by an actual legal requirement.
Question 2: “Can I See a Proof of Funds Letter That Matches Your LLC or Name?”
This one trips people up more than you’d think, because most sellers assume “proof of funds” is just a formality, a box to check, not something worth reading closely.
Here’s what actually matters: the name on that letter has to match the name on your contract. If “Smith Home Solutions LLC” is buying your house, the proof of funds better say Smith Home Solutions LLC, not some other name entirely, and definitely not “trust me, we’re good for it.” If those names don’t line up, that’s not a technicality. That’s the whole ballgame, because it tells you whether the entity signing your contract actually has money behind it, or is just a name on a piece of paper hoping to borrow someone else’s.
Question 3: “How Much Non-Refundable Earnest Money Are You Putting Down?”
Save this one for last, because by the time you ask it, you’ll already have a decent read on the person you’re talking to.
Earnest money is the buyer’s way of saying “I have something to lose here.” A real cash buyer, with real funds ready, generally doesn’t blink at putting down a meaningful amount and making it non-refundable once your contingencies pass. Someone still hoping to line up a buyer down the road? They want that money light, and they want it refundable, because their whole plan depends on being able to walk away clean if it doesn’t work out.
Ask the number. Then ask if it’s refundable. The gap between “yes, and it’s non-refundable” and a mumbled “well, it depends” tells you almost everything.
Why This Actually Matters
None of this is about catching someone in a lie. It’s about protecting your own timeline. That Dundalk seller didn’t lose money exactly, she lost weeks, during a stretch of her life when weeks actually counted. Every day a fake deal drags on is a day you’re not talking to a real buyer, not fielding other offers, not moving forward.
Three questions. Ask them out loud, in plain language, before you sign. A legitimate buyer will answer without blinking, most of them will probably appreciate that you asked. If you get hedging, vague reassurance, or a name that doesn’t match, you’ve just saved yourself the wait.
Frequently Asked Questions on Cash Home Offers
Do I have to ask these questions in person, or can I put them in writing?
Either works, but writing is better, email or text keeps a record of the answer, which matters if something doesn’t add up later. There’s nothing wrong with asking out loud first and following up in writing to confirm.
What if the buyer gets defensive when I ask?
That reaction is information on its own. A serious buyer, used to fielding these questions, generally won’t take offense, they’d rather earn your trust than lose the deal over a little friction.
Are these questions too aggressive or rude to ask?
Not at all. You’re not accusing anyone of anything — you’re doing basic due diligence on what’s probably the largest transaction of your year, maybe your life. Any buyer worth working with expects that.
What if I already signed without asking these questions?
Ask them now. It’s not too late, and Maryland’s disclosure law may give you real options if the answers reveal something you weren’t told upfront — worth a look at our guide on red flags in a cash home buyer contract if that’s the situation you’re in.
Bottom Line: Questions to Ask Before Accepting a Cash Offer
You don’t need a law degree or a suspicious streak to protect yourself here — just three direct questions, asked before you sign. For the fuller picture on the difference between a direct buyer and a wholesaler, and what Maryland law now requires, start with our guide on direct cash buyers vs. wholesalers.
Request Your No Obligation, No Hassle, Cash Offer Today – 100% FREE!
Sources
- Maryland General Assembly — House Bill 124: Residential Property – Assignment of Contracts of Sale – Disclosure Requirements and Rescission
Disclaimer: This article is for informational purposes only and should not be construed as legal or financial advice. Please consult with professionals for advice specific to your situation.
If you need to sell your house quickly in Towson, MD, contact Yes I Pay Cash today. We offer cash for homes in Cockeysville and all throughout Maryland. You can reach us at (443) 200-4882 to get a fair cash offer or fill out the form below.
