We Buy Houses Scams: How to Verify a Cash Buyer in New York
Most cash buyers are real. Some aren't. Here's how to check who's buying, whether the money exists, and what the contract really says before you sign.
Updated October 8, 2026•By The CashForHousez Team
Quick Answer
Plenty of "we buy houses" companies are legitimate, but the slogan proves nothing. Before you sign, check four things: who the legal buyer is, whether their proof of funds is in that buyer's name, what the contract lets them do (cancel, change the price or assign it), and that your own attorney, not theirs, reviews it. The real danger signs are pressure to sign a deed fast, promises that you can buy the house back later, and last-minute changes to wiring instructions. A low offer, on its own, isn't a scam.
1
Are Cash Buyers Legit, and What's Actually a Scam?
Cash home buyers can be individuals, investors or companies, and most are real. A few lie about who they are, whether they have the money, or what you're signing. "We buy houses" is a sales pitch, not a credential, so judge the specific buyer and the specific deal.
A low offer isn't a scam
An offer well below what you hoped for doesn't make someone a scammer. Investors price in repairs, holding costs and profit. You can say no or compare other offers. A price change after inspection deserves an explanation and a look at the contract, but it isn't automatically dishonest either.
The real problems are different: lying about what a document does, faking proof of funds, or pushing you to sign over your deed on a promise. A buyer can be completely honest and still not be the right offer for you, so keep "is this fair?" separate from "is this real?" Our cash-selling guide covers how to compare offers.
2
Find Out Who's Really Buying
Ask for the buyer's exact legal name, a way to reach them, and the name and title of whoever will sign the contract. Check that the same name appears on the offer, the contract and the proof of funds. A buyer's brand is often different from the legal name on the contract, and that's fine. Many smaller investors buy in their own name or through a company set up for a single purchase. Ask how the brand connects to the name on the contract, and make sure that name matches the proof of funds.
Look up the company and check any license
For an LLC or corporation, search the New York Business Entity Records ↗ by its legal name, not its advertising name. A person buying in their own name won't appear there at all, and that's normal. For an individual buyer, what matters is that the name on the contract matches the proof of funds and that your own attorney reviews the deal.
If someone says they're a real estate broker or agent, check the state license lookup ↗. Someone buying a house for themselves doesn't need a license. But under New York's brokerage law ↗ and licensing rules ↗, someone who's really just finding a house for another buyer and taking a fee may need one.
What records and reviews can't tell you
A company registration tells you the company exists. It doesn't prove it's honest or has money. Reviews and past deals help, but current documents matter more. A new company isn't automatically shady, and a slick website isn't proof of anything.
3
Check the Proof of Funds
Ask for proof of funds for this purchase: usually a recent bank letter or statement with account numbers blacked out. Have your attorney look at what it actually shows. A screenshot of a balance with no name or date isn't enough.
Five things to check
Name: Is the account in the buyer's name? If not, who is it, and why?
Amount: Does it cover the price plus the buyer's closing costs?
Date: Is it recent? Ask for an updated one if closing is weeks away.
Access: Is the money available now, or does something have to be sold or a lender approve it?
Source: Is a partner or lender putting up the money, and on what conditions?
Money in a partner's or member's account can be legitimate, but the buyer should explain how they'll get it. A mortgage pre-approval is not proof of cash. It means a lender might lend, not that the money is sitting there.
Protect privacy
If you want to confirm the letter with the bank, look the bank's number up yourself; don't use one printed on the letter. The bank may not tell you anything without the buyer's permission. Never ask for passwords, online banking access or full account numbers.
Proof of funds shows the money existed on one day. It doesn't guarantee the buyer will close. "No financing contingency" in a contract doesn't prove the money exists either.
4
Read the Contract Before You Sign
Have your own attorney review the contract. In New York, both sides almost always have attorneys, and the buyer's attorney works for the buyer. Check the buyer's name, price, deposit, who holds the deposit, deadlines, inspection rights, how the buyer can cancel, assignment, closing date and move-out. Make sure every promise they made out loud is actually written in.
Promised deposit vs. paid deposit
Confirm with your attorney that the deposit actually arrived in escrow. A screenshot of a transfer isn't proof. And a deposit doesn't guarantee the buyer will close, or that you'll automatically keep it if they don't.
Assignment and price changes
An assignment clause lets the buyer sell the contract to someone else before closing. That's how wholesalers work, and it isn't illegal by itself. But ask who will actually close, whether the deal depends on them finding another buyer, and whether the original buyer stays responsible.
Find out when the inspection happens, what lets the buyer cancel, and how any price change would be handled. If the buyer later refuses to close, see our guide to cash buyers backing out before closing before you claim the deposit or sign with someone else.
Would you like to compare a cash offer?
Tell us about your New York property and request a no-obligation offer. You can compare it with your other selling options and decide what works for you.
A warning sign means slow down and check, not that someone is definitely a fraud. Be careful when a buyer won't say who the legal buyer is, keeps changing the story about the money, or pushes back on your attorney reviewing things.
Pressure and strange payment requests
Be wary of "sign today or the offer's gone," and of any request to pay the buyer just to get an offer. In a normal sale, you pay your own attorney and closing costs; you don't pay the buyer an "application" or "processing" fee. Ask who gets any payment, what it's for, and where it's written in the contract.
If the price changes, ask why in writing and check what the contract allows. Repeated price cuts with no real reason, combined with pressure, are a pattern worth taking seriously. For what condition-based negotiation normally looks like, see what selling as-is means.
Deed transfers and "rescue" promises
Never sign over your deed in exchange for a promise to pay later, stop a foreclosure or let you buy the house back, without your own attorney reviewing it. This is the most common deed-theft setup in Queens and Brooklyn. The Attorney General's deed-theft guide ↗ explains how it works. Signing over the deed also doesn't take your name off the mortgage; you can lose the house and still owe the loan.
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New York and NYC Protections
Extra protection if you're in foreclosure
Use your own attorney, never one the buyer recommends. If you're in foreclosure, or two or more months behind with a deal that includes buying the house back, New York's Home Equity Theft Prevention Act ↗ generally gives you 14 business days to cancel after signing. During that time the buyer can't take your deed or pay you. Our guide to selling a house in foreclosure explains it in detail. Ordinary cash sales don't come with that cancellation right.
For free counseling and legal help, call the Homeowner Protection Program at 855-466-3456. See also our foreclosure guide.
Check your deed records
In Queens, Brooklyn, Manhattan and the Bronx, you can look up your deed free on ACRIS through the NYC deed-fraud page ↗. Staten Island uses the Richmond County Clerk; in Nassau, check with the Nassau County Clerk.
NYC also offers free alerts ↗ whenever a document is recorded against your property. An alert doesn't stop a fraudulent deed from being filed, but it lets you catch it quickly. If you own a vacant house or live elsewhere, sign up, keep your mailing address current, and have someone check on the property.
7
Protect Your Closing Money
Agree with your attorney, before closing, on exactly how and where your money will be sent, and on the phone numbers you'll use to confirm.
Wire fraud is the most common way sellers actually lose money at closing. Scammers send an email that looks like it's from your attorney or title company with "updated" bank details. Any change to payment instructions should be confirmed by calling a number you already had, never one in the new email. Don't send bank details through an unexpected link.
If money may have gone to the wrong account, call your bank immediately and ask them to try to recall the wire. Speed matters; the first few hours give the best chance. Then tell your attorney and report it.
8
Cash Buyer Checklist
Keep the offer, contract, proof of funds and the buyer's explanations together. Mark each item open until someone has actually checked it.
What buyers say, and how to check it
What they say
What to ask for
What it doesn't prove
"Our company is buying"
The legal buyer's name, how it connects to the brand, and who's signing
A registration doesn't prove money or honesty
"The cash is ready"
Proof of funds in the buyer's name, recent, with any conditions explained
Money can move; it doesn't guarantee closing
"No financing contingency"
The actual contract and how they're paying
The phrase alone doesn't mean the money exists
"The deposit is paid"
Confirmation from your attorney that it's in escrow
A screenshot isn't proof
"The price won't change"
The written price and the inspection and amendment terms
A verbal promise doesn't override the contract
"Just sign the deed now"
Your own attorney's review of the whole deal
A promise to pay later isn't a sale
Before you commit, write down these answers
Who's the legal buyer, and who's signing?
Who checked the proof of funds, and does the name match?
How much is the deposit, when is it due, and who holds it?
What lets the buyer cancel, change the price or assign the contract?
Who pays which costs, and what could reduce what you get?
Who's your own attorney?
Which phone numbers and wiring instructions have been confirmed?
Example: money in a different name
An LLC makes an offer, but the bank letter is in one of its members' names. That's not proof of fraud. The seller's attorney asks how the member's money will get to the LLC at closing and whether there are conditions, and the seller treats it as open until that's answered.
Example: a "rescue" offer
A homeowner behind on the mortgage is told to sign the deed today and promised they can buy the house back later. Instead of trusting the promise, they take the papers to their own attorney, who explains the risks and the state's protections. These are illustrations, not real CashForHousez cases.
9
If You Already Signed or Suspect Fraud
Save everything: the signed papers, texts, emails, ads, payment records and dates. Call your own attorney right away, and ask about your rights and deadlines before you send a cancellation, sign a release or relist the house.
For suspected deed theft, follow the Attorney General's reporting steps ↗. If a suspicious document was recorded on an NYC property, the Department of Finance ↗ explains how to pull the records and report it. Deal with an ownership problem before taking another offer.
If you sent money, call your bank immediately. Keep pushing even if the other side goes quiet. A deal that falls through, or one you regret, isn't automatically a crime; the documents and facts decide that.
CashForHousez is a direct home buyer and may make an offer on your property. Use this checklist on us too, and compare our offer with your other options.
Common Questions
Cash Buyer Verification FAQs
Are "we buy houses" companies legit?
Many are. The slogan doesn't prove it either way, so check the specific buyer, their proof of funds, the contract and the closing arrangements.
How do I verify a cash buyer in New York?
Get the legal buyer's name and make sure it matches the contract and the proof of funds, look up any company in the state database, check any license they claim, confirm the proof of funds is in their name, and have your own attorney review the contract.
What proof of funds should I ask for?
A recent bank letter or statement in the buyer's name, showing enough money, with account numbers blacked out. Have your attorney check it.
Is a low cash offer a scam?
No. Investors price in repairs and profit. You can turn it down, but a low price alone isn't fraud.
Is it a scam if the buyer can assign the contract?
Not by itself. It's how wholesalers work. Ask who will actually close, and whether the deal depends on finding another buyer.
Does proof of funds guarantee closing?
No. It shows the money existed on one date. The contract, title and the buyer following through still matter.
Do NYC deed alerts stop deed theft?
No. They tell you when something is recorded against your property, so you can act fast. They don't block the filing.
What if I already signed?
Save every document and call your own attorney right away. If you sent money that may have gone to the wrong place, call your bank immediately.
A good cash offer comes from a buyer you can identify, with money you can see and a contract you understand. A legitimate buyer won't mind you checking; the ones who push back are the ones to slow down with.
Fast is fine, as long as it leaves room for your own attorney to read the papers. Most sellers who lose their homes or their money weren't careless. They were rushed.
Ready to explore a possible cash sale?
Tell us about your New York property. Request a no-obligation cash offer and decide whether the price, terms, and timeline work for you.
