This week we received another question from a viewer: “I have the ability to purchase a real estate property with cash. What should I be thinking about?”

When deciding to pay cash or obtain financing, always get professional advice from your financial advisor, loan professionals, and CPA. Back in the day, occasionally people would just hand over a check for a deed without completing any due diligence. We do not recommend doing this. When we represent clients that are paying for a property without seeking a loan, we would do everything we would normally do and treat the transaction as if a lender was involved. Our due diligence includes:

Conducting a title exam;
Obtaining a municipal lien certificate;
and Ordering a plot plan.

Every buyer should determine whether the seller owns the property and that all liens will be released. Buyers should verify that there are no outstanding taxes. If there is an outstanding real estate tax obligation, the buyer should require the Seller to pay the outstanding taxes and adjust as of the date of closing. Finally, we obtain a plot plan to verify that the structures do not encroach onto a neighboring lot and that structures on neighboring lots do not encroach onto the lot that the Buyer is purchasing.

In sum, Stiles Law will apply the same level of due diligence as would be required in a financed transaction.

An often overlooked detail in a cash transaction are ongoing responsibilities for real estate taxes and insurance. Buyers should remember to pay all real estate tax bills, even if they are not yet in the Buyer’s name, and to always maintain homeowner’s insurance.

If you want more information on Cash Transactions, please contact us at contact Stiles Law at (781) 319-1900 or

Copyright © 2019 Stiles Law, All rights reserved. Stiles Law is a Massachusetts licensed law firm and all content is based on Massachusetts law. The information presented above is meant to be used for general informational purposes and it should not be construed as legal advice or legal opinion on any specific facts.