Table of Contents
Quick Answer
A handful of contract details can tell you a lot before you ever sign: an assignment clause going to an unknown third party, an inspection period that runs 20-30+ days, an escape clause that lets the buyer walk with no real consequence, and earnest money that’s small or fully refundable. None of these alone is a dealbreaker but stacked together, they’re the signature of a wholesaler still shopping for a real buyer, not a company ready to close.
Most sellers don’t read their contract line by line. They read the offer price, skim the rest, and sign. That’s exactly where these red flags like to hide.
This guide walks through the specific contract details and behaviors worth paying attention to before you sign anything, the kind of things that separate a real cash buyer from someone who’s still hoping to find one. If you want the fuller picture on the difference between a direct buyer and a wholesaler, and Maryland’s new disclosure law, start with our guide on direct cash buyers vs. wholesalers. This piece goes deeper on the contract-level details themselves.
1. Assignment to an Unrelated Third Party
“And/or assigns” language by itself is completely normal , plenty of legitimate buyers structure their business this way, often assigning a contract internally to their own closing entity at no cost to you. That’s not the problem.
The problem shows up when the assignment goes somewhere else entirely: a contract gets signed, weeks go by, and a name you’ve never heard of shows up at closing or on the settlement statement, often with a markup added to what the original buyer agreed to pay. If that happens without you being told in advance, it’s not just a bad look, it’s exactly the scenario Maryland’s new disclosure law was written to address.
As of October 1, 2025, Maryland law (Md. Real Property § 10-715) requires anyone acting as a wholesale buyer to give you written disclosure, before you sign, that the contract might be assigned. Ask directly if that’s a possibility, and get the answer in writing.
2. An Unusually Long Inspection or Due Diligence Period
A genuine cash buyer, with funds already lined up, usually doesn’t need weeks to decide whether they want your house. There’s no lender requiring a formal appraisal, no underwriting process to wait on, just a walkthrough and a decision.
So when a contract includes a 20, 30, or even 45-day inspection period for a supposedly simple cash deal, that window deserves a second look. That’s often close to exactly how long a wholesaler needs to shop your contract around to other investors before their own deadline arrives. It’s not proof of anything by itself, but it’s worth asking: what, specifically, takes that long to inspect?
3. Broad “Escape” or “Sole Discretion” Clauses
Every contract has some contingencies, and that’s normal; a real title issue or an unexpected structural problem are legitimate reasons for either side to have an out. The red flag isn’t having a contingency. It’s having one so broad it barely means anything.
Watch for language that lets the buyer cancel “for any reason” or “at buyer’s sole discretion” during the contract period, with little or no real consequence for walking away. Paired with a long inspection window, this combination gives a wholesaler maximum room to back out cleanly if they can’t line up someone to buy the contract from them.
4. Weak or Fully Refundable Earnest Money
Earnest money exists for one reason: to show the buyer has something real to lose if they walk away. A serious cash buyer typically puts down an amount that actually stings to forfeit.
A token deposit, or one that’s fully refundable right up until closing, keeps the buyer’s exit easy. If you’re only being offered a small, fully refundable amount, ask why. A confident buyer with real funds usually doesn’t mind putting more skin in the game.
5. Multiple People Touring the Property During Your Contract Period
This one doesn’t require reading any fine print, you’ll notice it happening. If several different people show up to walk through your home during what’s supposed to be a single buyer’s due diligence period, different faces, different questions, people who don’t seem to know each other, that’s often a wholesaler bringing potential end buyers through to see if anyone wants to take the deal off their hands.
It’s completely normal for a legitimate buyer to bring one contractor or inspector through once or twice. A rotating cast of strangers is the tell.
What to Do If You Notice These Red Flags in A Cash Buyer
None of these signs alone means you’re being taken advantage of. But if you’re seeing two or three of them stacked together, it’s worth slowing down and asking direct questions before you sign anything, we cover the exact questions worth asking in our companion guide.
If you’ve already signed and something feels off, Maryland’s disclosure law may give you a way out: if a wholesale buyer didn’t provide the required written disclosure before you signed, you generally have the right to rescind the contract without penalty at any point before closing.
And to be clear, a reputable direct buyer isn’t going to be offended by any of this. If asking a direct question gets you a vague answer or a defensive reaction, that reaction is itself useful information. For a broader look at investor red flags beyond just the contract itself, including specific scams targeting Maryland homeowners, see our full guide on how to avoid real estate investor scams in Maryland.
Frequently Asked Questions On Selling to a Cash Buyer
What does a legitimate assignment clause actually look like?
A legitimate assignment clause is usually paired with a specific reason (assigning to the buyer’s own related entity, for example) and disclosed to you upfront rather than buried in boilerplate language. Under Maryland law, a wholesale buyer must tell you in writing, before you sign, if they intend to assign the contract.
Is a 7-day inspection period normal for a cash offer?
Yes — a short inspection window, often just a matter of days, is typical for a genuine cash buyer who already has funds ready and isn’t waiting on a lender. It’s the unusually long windows, 20-30+ days, that are worth questioning.
Can I say no to a wholesaler bringing buyers through my house?
Generally, yes, unless your contract specifically grants broad access for showings, which is itself worth reading closely before you sign. You’re within your rights to ask who’s touring your home and why, and to set reasonable limits on access during the contract period.
What should I do if I think I’m dealing with a wholesaler after I’ve already signed?
Start by reviewing whether you received the disclosure Maryland law now requires. If you didn’t, you likely have the right to rescind the contract without penalty before closing. From there, it’s worth speaking with a real estate attorney about your specific situation.
Bottom Line On Cash Buyer Red Flags
No single red flag here automatically means something’s wrong. But contracts with long inspection windows, broad escape clauses, weak earnest money, and vague answers about assignment tend to show up together and when they do, it’s usually because the person you’re talking to isn’t actually ready to buy your house yet. Ask direct questions, get answers in writing, and remember that Maryland law is now on your side if a wholesaler skips the disclosure they’re required to give you.
Sources
- Maryland General Assembly — House Bill 124: Residential Property – Assignment of Contracts of Sale – Disclosure Requirements and Rescission
- Maryland REALTORS® — Summary of 2025 Real Estate Legislation
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
- Maryland REALTORS® — Summary of 2025 Real Estate Legislation
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 Randallstown, MD, contact Yes I Pay Cash today. We pay cash for houses in Reisterstown and all throughout Maryland. You can reach us at (443) 200-4882 to get a fair cash offer or fill out the form below.
