As-Is Sale
A sale where the seller makes no repairs and offers no warranties on the property's condition. Cash buyers typically purchase as-is, accepting any defects in exchange for a faster close and no repair negotiations.
Reference
Cash Home Sale Glossary
Every term a homeowner encounters when selling for cash, dealing with foreclosure or probate, or working with cash buyers — defined in plain English. 46 terms, bookmark-worthy.
Quick jump
As-Is SaleARV (After Repair Value)AppraisalAssignment of ContractCash BuyerCash OfferClosing CostsCode ViolationComps (Comparable Sales)DeedDeed in Lieu of ForeclosureEarnest Money Deposit (EMD)EscrowEquityFSBO (For Sale By Owner)ForeclosureHOA (Homeowners Association)Homestead ExemptioniBuyerInspection ContingencyLienLis PendensMLS (Multiple Listing Service)POF (Proof of Funds)ProbateInherited PropertyExecutor / Personal RepresentativeQuitclaim DeedRedemption PeriodShort SaleStepped-Up BasisSubject-To SaleDue-on-Sale ClauseTax LienTitleTitle CompanyTitle InsuranceTitle SearchWholesalerCommissionCapital Gains TaxContingencyREO (Real Estate Owned)Property TaxMortgage PayoffMortgage
ARV (After Repair Value)
The estimated market value of a property after all renovations are complete. Cash buyers calculate offers as a percentage of ARV minus repair costs and target profit — typically 70–85% of ARV minus repairs for direct buyers, lower for franchise wholesalers.
Appraisal
A licensed appraiser's opinion of a property's market value, usually required by lenders for financed purchases. Cash sales typically waive the appraisal contingency, which is one reason cash buyers can close faster than financed buyers.
Assignment of Contract
A legal transfer of a purchase contract from the original buyer (often a wholesaler) to a new buyer who actually closes. If you sign with a wholesaler, your contract is assigned — the person who closes may not be the person you negotiated with.
Cash Buyer
A buyer purchasing property without bank financing, using personal capital, hedge fund money, or hard money loans that close like cash. True cash buyers can close in 7–14 days and waive financing and appraisal contingencies.
Cash Offer
A purchase offer not contingent on bank financing. Real cash offers come with proof of funds (POF) showing the buyer has the money in an account; offers without POF are often financed buyers, wholesalers, or speculative bids.
Closing Costs
Fees paid at closing to transfer ownership — title insurance, escrow fees, recording fees, transfer taxes, and prorated property taxes. Most cash buyers pay all closing costs as part of their offer; traditional sales typically split costs between buyer and seller.
Code Violation
A municipal citation for a property condition that violates local building, health, or safety codes — unpermitted work, junk accumulation, dangerous structures, weeds. Active code violations transfer with the property unless settled at closing or assumed by the buyer.
Comps (Comparable Sales)
Recent sales of similar properties used to estimate market value. Reliable comps are within roughly half a mile, sold within the past 6 months, with similar bedrooms, bathrooms, square footage, and condition. Cash-buyer comps should reflect as-is/distressed sales, not fully renovated retail sales.
Deed
The legal document transferring property ownership from seller to buyer. Common types: warranty deed (full title guarantees), special warranty deed (limited guarantees), and quitclaim deed (no guarantees). Cash sales typically use warranty or special warranty deeds.
Deed in Lieu of Foreclosure
A voluntary transfer of property to the lender to satisfy a defaulted mortgage and avoid foreclosure. Less damaging to credit than a foreclosure, but the lender must agree, and any second lien holders must be addressed first.
Earnest Money Deposit (EMD)
A good-faith deposit the buyer makes when a contract is signed, held in escrow until closing. Typical EMDs are $500–$5,000 for cash buyers; financed buyers usually put down 1–3% of purchase price. The seller keeps the EMD if the buyer breaches the contract without a valid contingency.
Escrow
A neutral third party (usually a title company or attorney) that holds funds and documents during a transaction. Escrow ensures neither party gets paid or receives the deed until all conditions of the sale are met.
Equity
The portion of a property's value owned outright — market value minus mortgage balance and any other liens. Sellers facing foreclosure with equity often have more options than they realize, including a fast cash sale that pays off the mortgage and returns the difference.
FSBO (For Sale By Owner)
Selling a property without listing it with a real estate agent. FSBO sellers save the listing commission (typically 2.5–3%) but handle marketing, showings, negotiations, and disclosures themselves.
Foreclosure
The legal process by which a lender repossesses property after the borrower defaults on the mortgage. Foreclosure may be judicial (court-supervised, slower) or non-judicial (handled outside court, faster), depending on state law and loan documents.
HOA (Homeowners Association)
A governing body in a planned community that enforces rules and collects dues for shared amenities. Unpaid HOA dues become liens on the property and must be settled at closing. Some HOAs require buyer approval, which can complicate fast cash sales.
Homestead Exemption
A state-law protection that reduces property taxes on a primary residence and may shield home equity from certain creditors. In Texas, the homestead exemption is unlimited in value but capped in acreage (10 urban / 100 rural). Selling does not extinguish past-year benefits but ends future eligibility.
iBuyer
An institutional cash-buying company (Opendoor, Offerpad, Zillow Offers prior to shutdown) using algorithmic offers based on online data. iBuyers typically buy only homes in good condition and add a service fee of 5–8% on top of below-market offers.
Inspection Contingency
A contract clause allowing the buyer to back out or renegotiate based on inspection findings. Cash as-is buyers usually waive inspection contingencies (they may still inspect for their own information), which is what allows fast 7–14 day closes.
Lien
A legal claim against property securing a debt — mortgage, mechanic's lien, judgment, tax lien, HOA dues. Liens must be paid off or released at closing for the seller to deliver clear title. Unknown liens often surface during the title search.
Lis Pendens
A public notice filed in court records that a lawsuit affecting title to a specific property is pending. Common in foreclosure and divorce. A lis pendens does not prevent sale but warns buyers and complicates title insurance.
MLS (Multiple Listing Service)
A regional database where licensed real estate agents list properties for sale and share commissions. Listing on the MLS provides maximum exposure but requires an agent (typically 5–6% commission total) and a property in showable condition.
POF (Proof of Funds)
A bank statement or letter showing the buyer has cash sufficient to close. Real cash buyers provide POF on request — usually a recent bank statement or a hard money lender pre-approval. Refusal to provide POF is a red flag the buyer may be a wholesaler or speculator.
Probate
The court-supervised process of administering a deceased person's estate — validating the will, paying debts, and distributing assets. Selling probate real estate may require court approval depending on the state, the will, and whether independent administration was granted.
Inherited Property
Real estate transferred to heirs after the owner's death, either through a will (probate), a trust, or by operation of law (joint tenancy, community property). Inherited property receives a stepped-up basis to fair market value at death, often eliminating capital gains tax on a quick sale.
Executor / Personal Representative
The person named in a will (or appointed by the court if there is no will) to administer the deceased's estate. The executor has authority to sell estate real estate, subject to state probate rules and any restrictions in the will.
Quitclaim Deed
A deed that transfers whatever interest the grantor has in a property — without any guarantee that the grantor actually owns it or that title is clear. Used in divorces, inheritances, and intra-family transfers; rarely used in arm's-length sales because it offers buyers no protection.
Redemption Period
A state-defined window after foreclosure sale during which the former owner may reclaim the property by paying the full debt plus costs. Some states have no redemption period; others allow up to a year. The presence of a redemption period affects how soon a buyer can take clear possession.
Short Sale
A sale where the lender agrees to accept less than the mortgage balance to release the lien, allowing the property to sell. Short sales avoid foreclosure but require lender approval, which often takes 60–120 days — slower than a cash sale where the seller has equity.
Stepped-Up Basis
A federal tax rule that resets a property's cost basis to its fair market value at the owner's death. Heirs who sell inherited property soon after death typically owe little or no capital gains tax, because the sale price is close to the new stepped-up basis.
Subject-To Sale
A creative-finance transaction where the buyer takes ownership but the seller's mortgage stays in place — buyer makes payments on the existing loan. Most US mortgages contain a due-on-sale clause that gives the lender the right to call the loan if title transfers, so subject-to carries lender risk.
Due-on-Sale Clause
A standard mortgage clause giving the lender the right to demand full repayment if title transfers. It does not automatically void a sale, but the lender can call the loan due, which can collapse subject-to and creative-finance deals.
Tax Lien
A government claim against property for unpaid property taxes (county) or income taxes (state/federal). Tax liens take priority over most other liens and must be paid at closing. Unpaid tax liens can lead to tax sale or foreclosure depending on state law.
Title
Legal ownership of property. A "clear" or "clean" title means no liens, judgments, or competing claims. Title issues — old liens, missing heirs, boundary disputes, unrecorded deeds — are a common reason cash sales take longer than expected.
Title Company
A company that researches a property's ownership history, issues title insurance, holds escrow funds, and records the deed at closing. In some states (like Texas) title companies handle most closings; in attorney-state markets, real estate attorneys play this role.
Title Insurance
A one-time premium policy protecting against loss from title defects discovered after closing — undisclosed liens, fraud, missing heirs, recording errors. Lender's title insurance is required for financed loans; owner's title insurance is optional but standard.
Title Search
A review of public records to verify the seller's ownership and identify any liens, judgments, or encumbrances. Performed by a title company or attorney, usually completed within 5–10 business days. Cash sales can't close until title is clean.
Wholesaler
A middleman who signs a purchase contract with a homeowner and then assigns that contract to an end cash buyer for a fee. Sellers signing with wholesalers should know that the closing buyer may differ from the negotiating party and that the contract may be reassigned multiple times before closing.
Commission
The fee paid to real estate agents for representing buyer and seller, typically 5–6% of sale price (split between agents). Cash sales bypass agent commissions when the seller works directly with the buyer, saving 5–6% on a $300K home (~$15K–$18K).
Capital Gains Tax
Federal (and sometimes state) tax on the profit from selling property. Primary residences may qualify for a $250K (single) / $500K (married) exclusion if owned and lived in for 2 of the last 5 years. Inherited property typically owes little due to stepped-up basis. Talk to a CPA — this is general information, not tax advice.
Contingency
A condition in a purchase contract that must be met for the sale to proceed — financing, appraisal, inspection, sale of buyer's current home, title clearance. Cash as-is buyers typically waive most contingencies, trading flexibility for closing speed and certainty.
REO (Real Estate Owned)
Property a lender has taken back after a failed foreclosure auction. Banks list REO for sale through agents and typically sell as-is, often below market — but the process is slow, paperwork-heavy, and not relevant to homeowners trying to avoid foreclosure (their window is before the auction).
Property Tax
An annual tax assessed by county/local government based on property value. Unpaid property taxes become a lien with priority over most other liens. At closing, taxes are prorated between seller and buyer based on the closing date.
Mortgage Payoff
The exact amount required to pay off the mortgage in full — principal, accrued interest, prepayment penalties, and any escrow shortages — as of a specific date. The title company orders an official payoff statement from the lender before closing.
Mortgage
A loan secured by real estate. The lender has the right to foreclose if the borrower defaults. At closing on a sale, the seller's mortgage is paid off from sale proceeds before the seller receives any equity.
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