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A legitimate cash offer contract names the exact buyer entity, puts substantial earnest money with a licensed title company, and contains no financing contingencies. A neutral closing agent handles every dollar. The four clauses to check before signing are the buyer identity, the earnest money terms, the contingencies, and who pays closing costs. In Ohio, there’s now a legal test too. As of March 2, 2026, ORC Section 5301.95 requires any wholesaler to hand you a separate written disclosure before you sign anything. If the buyer in front of you can’t check those boxes, you’re not looking at a cash offer. You’re looking at a trap.
If you’ve owned a distressed rental, inherited a home in probate, or watched code violations pile up on a Central Ohio property, you’ve seen the signs stapled to telephone poles and stuffed in your mailbox. “We Buy Houses for Cash!” But you don’t make business decisions based on handwritten signs. You make them based on legal realities, risk, and bottom line math. The safety of your sale is written entirely in the clauses of your purchase contract. Knowing what a legitimate cash offer contract looks like is the difference between a clean closing and weeks of wasted time. A middleman who never intended to buy your house is counting on you not reading those clauses.
My name is Marc Van Steyn. For more than 20 years I have worked directly with landlords, estate executors, and tired property owners across Franklin, Delaware, Licking, and Fairfield Counties. I’ve closed well over 250 transactions in my real estate business and hold an A+ rating with the BBB. Roughly once a week, a homeowner calls our office at 1560 Fishinger Rd Columbus Ohio 43221 after getting burned by a wholesaler. The story is almost always the same. They signed with someone they believed was a cash buyer, the price got renegotiated at the last minute, then the contract got terminated. This article goes through the selling process, clause by clause, so that never happens to you. For a broader look at the process, start with these 8 tips to know before selling your house for cash.
What Does a Legitimate Cash Offer Contract Include?
A legitimate cash offer contract in Ohio identifies both parties by exact legal name, describes the property by parcel number, states the price and earnest money terms, and names a licensed title company as the neutral closing agent. When EasySell buys a house, we use the Columbus Board of Realtors standard purchase contract, the same document thousands of Central Ohio agents use every day. There’s no mystery paperwork and no one page “agreement” drafted to protect a middleman.
Here’s what must be present.
Fully identified parties and a legal description. The contract states the exact legal names of buyer and seller. If the buyer is an entity, it lists the registered Ohio LLC name, which you can verify in seconds on the Ohio Secretary of State’s business search. It also carries the parcel number and legal description as recorded by the county, such as the Franklin County Recorder’s Office at 373 South High Street in Columbus. A street address alone isn’t legally sufficient for a secure transfer.
Earnest money held in escrow by a title company. The deposit goes to an independent, licensed Ohio title agency, never to the buyer’s own pocket. Our deposits sit with NorthWest Select Title, one of the largest and oldest title companies in Columbus. More on the dollar amount below, because it’s the single fastest way to separate buyers from pretenders.
Clear title and a neutral closing agent. The contract stipulates that the seller conveys good and marketable title, free of liens except those paid off at closing from the proceeds. The title company handles every dollar. No cash ever passes directly from buyer to seller outside escrow.
As is language with no financing contingencies. A true cash purchase accepts the property in its current condition, faults, code violations, leftover belongings and all. The buyer may take a brief walk through to confirm layout and condition, but there’s no appraisal contingency and no “subject to bank approval.” If the contract needs a lender’s blessing, it isn’t a cash offer.
An attorney review period, if you want one. Every seller we work with gets asked the same question before signing: would you like an attorney review period? Most who take it choose 3 to 5 calendar days. A buyer who resists letting your lawyer read the contract is telling you everything you need to know.
Which Contract Clauses Should Make You Walk Away?
Three clauses should end the conversation immediately: “and/or assigns” in the buyer name, a token earnest money deposit, and any approval contingency that lets the buyer cancel for reasons you can’t verify. These are the fingerprints of a wholesaler, a middleman whose business model is tying up your home under contract, then shopping that contract to an actual investor for a fee. When they can’t find one, an escape clause gets them out and leaves you stranded weeks later, sometimes after you’ve already made moving plans.
“And/or assigns” in the buyer name. This language gives the signer the right to hand your contract to a stranger. Assignment itself is now regulated rather than banned in Ohio, but predatory operators use this phrase to hide the fact that they don’t have funds to close. EasySell never assigns a contract. We’re the end buyer, every time.
The partner approval loophole. Watch for wording like “subject to partner’s approval” or “void if buyer’s inspector does not approve within 14 days.” That clause is a get out of jail free card. When the flip attempt fails, the buyer cancels without losing a dime, and the termination usually lands days before closing.
Refusal to show proof of funds. A buyer with cash can prove it. A wholesaler hands you a vague “pre approval” letter from an online lender you’ve never heard of.
Here are the four clauses side by side, the wholesaler version against the standard a professional buyer will meet.
| Contract Clause | Wholesaler Trap | Legitimate Standard | Consequence for You |
|---|---|---|---|
| Buyer identity | “John Doe and/or Assigns” | Registered Ohio entity, verifiable with the Secretary of State | Your contract gets shopped to an unknown third party |
| Earnest money | $100, or held “on file” by the buyer | $10,000 deposited with a licensed Ohio title company | A buyer with nothing at risk walks away anytime |
| Contingencies | “Subject to partner approval,” 15 to 30 day open windows | Brief walk through, no financing contingencies | Last minute cancellation after you’ve made plans |
| Closing costs | Hidden fees pushed onto the seller | Buyer pays standard closing costs | Thousands less at the closing table than the contract price |
What Does Ohio’s New Wholesaler Law Require?
Since March 2, 2026, Ohio Revised Code Section 5301.95 requires wholesalers to give property owners a separate written disclosure, printed conspicuously in boldface type of at least 12 points, before entering any binding contract. Both the wholesaler and the owner must sign and date it. The disclosure states plainly that the person in front of you is a wholesaler acting on their own behalf, not yours. It also spells out that they intend to assign or sell their contract interest for a profit. You can read the full statute at ORC Section 5301.95.
The teeth matter more than the paperwork. Under division (C) of the statute, a wholesaler who skips the disclosure hands you an exit. You can cancel the contract at any time before the close of escrow, without penalty. Any earnest money must be released to you within 30 days. A violation also counts as an unfair or deceptive act under Ohio’s Consumer Sales Practices Act. That gives you a private cause of action for economic damages plus up to $5,000. It also puts the Ohio Attorney General’s enforcement powers behind you.
Here’s what we’ve seen on the ground in the four months since the law took effect. Several of the large national wholesaling operations that blanketed Columbus with mailers have pulled out of the market since March, and the timing is hard to read as coincidence. The law didn’t ban wholesaling. It just made hiding what you are illegal, and some operators apparently can’t work under those conditions.
How Much Earnest Money Should a Cash Buyer Put Down?
Ask for $10,000. That’s the recommendation we give every Central Ohio seller, and it’s the number we’re prepared to stand behind on our own offers. Wholesalers and novice investors will push to keep the deposit at $100 or less, because a deposit that small costs them nothing when they walk. Ten thousand dollars sitting in escrow means the buyer loses money by walking away. That’s exactly why pretenders won’t agree to it.
The deposit belongs to the title company within a day or two of signing, in an independent escrow account, never “on file” with the buyer. If a buyer balks at the amount, offers a token deposit, or wants to hold the money themselves, end the negotiation. You’ve just learned everything the rest of the transaction would have taught you the hard way.
How Do You Verify a Legitimate Cash Offer Contract Before Signing?
Ask for proof of funds, look up the entity, and confirm the title company. Those three checks take under an hour and eliminate nearly every bad actor. A buyer with nothing to hide survives all three without flinching.
Proof of funds means a bank statement showing cash in an account, in the buyer’s name. That’s what we show every homeowner before they sign with EasySell. On some purchases we use hard money to structure the deal. Even then, the offer is always backed by that cash sitting in the account, and the seller sees it. A generic letter from an out of state lender isn’t proof of anything. Then spend five minutes on the Ohio Secretary of State’s website confirming the LLC on the contract actually exists and is in good standing. Finally, call the title company named in the contract and confirm they’re handling the escrow. A legitimate buyer welcomes all of this, because it’s what separates them from the crowd nailing signs to telephone poles.
Frequently Asked Questions
Does a cash sale mean I can skip the title company?
No, and anyone suggesting it is trying to scam you. A clean cash transaction always runs through an independent, licensed Ohio title agency. The title company holds the earnest money in escrow, searches the title to clear back taxes and liens, and records the deed. EasySell closes through NorthWest Select Title in Columbus.
Are you the end buyer, or are you assigning the contract to a third party?
This is the single most important question a seller can ask, and it’s one we wish more people knew to ask. EasySell is the end buyer on every purchase. We never assign contracts, and under ORC 5301.95, anyone who does intend to assign must now disclose it in writing before you sign.
How do I verify a cash buyer actually has the money?
Request proof of funds before signing. A legitimate buyer shows a bank statement with cash in an account in their company’s name. A vague pre approval letter from an unknown online lender means they don’t have the cash.
Can I sell a house with code violations or a pending foreclosure?
Yes. We regularly buy properties with active municipal code violations, tax liens, probate complications, and pre foreclosure timelines. The contract specifies that liens, back taxes, and mortgages get paid off from the sale proceeds at closing, so you walk away clean.
How fast can a legitimate cash sale actually close?
Plan on 10 business days at minimum. That’s the time a title company needs to run the search, clear liens, and prepare a clean closing. Any buyer promising to close in two or three days is either cutting corners on title work or not planning to close at all.
Conclusion
When you’re dealing with a stressful property, emotion is expensive and business logic is your best asset. A trustworthy contract names a verifiable buyer, deposits serious earnest money with a licensed title company, and closes through neutral escrow with no financing contingencies. Ohio law now backs you up with mandatory wholesaler disclosure, cancellation rights, and damages when someone hides the ball. Read the clauses, ask the end buyer question, and request proof of funds before you sign anything.
And a note you won’t hear from most cash buyers: sometimes a cash sale isn’t your best move. When a house can attract retail buyers and you have time to wait, listing it will usually net you more. We’ll tell you that in the first conversation. If someone has put a contract in front of you and you’d like a second set of eyes on it, call me at EasySell Cash Homebuyers 614-969-0624. You can also visit webuyhousescashohio.com for a no obligation cash offer built on the standards in this article.
This article is for informational purposes only and isn’t legal advice. Before signing any purchase contract, review it with a licensed Ohio real estate attorney.
