At a closing where you are paying cash, you review and sign a short stack of documents — primarily the deed and the settlement statement — send the purchase funds to the title company, and walk out with the keys once the deed is on its way to the county recorder. The whole process typically takes one to three weeks from accepted offer to closing, compared with 30 to 45 days for a mortgage-backed purchase. The tradeoff for that speed: without a lender requiring appraisals, title policies, and insurance, every piece of due diligence falls on you.
What to Bring to the Closing Table
Proof of funds is the document a cash buyer cannot skip. Sellers and title companies want evidence that the money exists before they will proceed, and often before the seller even accepts the offer. The standard form is a letter from your bank on its letterhead, signed by an authorized representative, showing your account balance as of a recent date. Some title companies also accept two or three months of bank statements, but a signed bank letter is preferred because it is harder to fabricate.
Bring a valid government-issued photo ID, such as a driver’s license or passport. The title agent and notary will match your ID against the name on the deed and settlement statement, so the name has to line up exactly. A middle initial that appears on one document but not the other can hold up the signing. If you have recently changed your name, bring the supporting paperwork — a marriage certificate or court order.
Homeowners insurance is optional for a cash buyer in the legal sense: no lender exists to require it. But most title companies expect to see evidence of coverage at the table anyway, and carrying a policy from day one protects your full investment against fire, weather damage, and liability claims.
Reviewing the Settlement Statement
Before anyone signs, the title company or escrow officer presents the settlement statement, often formatted as an ALTA (American Land Title Association) Settlement Statement. This document is the financial map of the deal: the purchase price, any credits or adjustments between buyer and seller, and every fee you are about to pay. Read it line by line before closing day, not for the first time at the table.
Prorated property taxes are the most common adjustment. The seller owes taxes for the days they owned the property during the current billing cycle, and you pick up the tab starting on the closing date. If taxes have already been paid for the full year, you reimburse the seller for the portion covering your ownership period. If they have not been paid yet, the seller credits you their share so you can pay the full bill when it comes due.
Cash buyers skip all mortgage-related fees: no origination charges, no discount points, no lender’s title insurance. You still pay for the title search, escrow or settlement services, recording, and any owner’s title insurance you purchase. Altogether, cash closing costs typically run between 1% and 3% of the purchase price. The federal Real Estate Settlement Procedures Act does not technically apply to all-cash deals because it governs transactions involving federally related mortgage loans, but reputable title companies follow its disclosure standards anyway.1Office of the Law Revision Counsel. 12 U.S.C. Chapter 27 – Real Estate Settlement Procedures
Who Is at the Table
Cash closings are smaller affairs than financed ones. Without a lender representative in the room, four or five people is typical, and sometimes fewer in states that do not require an attorney.
- The title agent or escrow officer runs the closing: preparing the settlement statement, managing the escrow account, verifying clear title, coordinating signatures, and disbursing funds. In states that require an attorney to handle closings, a real estate attorney fills this role.
- A notary public witnesses the signing of the deed and other recorded documents, verifies your identity, and applies an official seal. In some states the title agent is also a commissioned notary; in others, they must be different people.
- Buyer and seller both review the final figures and sign their respective documents. If either party cannot attend, most states allow a power of attorney to sign on their behalf, with advance notice to the title company.
- Real estate agents from both sides may attend, though at this stage their role is largely observational.
Why Owner’s Title Insurance Matters More in a Cash Deal
When a lender is involved, the lender requires its own title insurance policy, and that policy triggers a legal defense if a title defect ever surfaces. A cash buyer has no such safety net. If you skip owner’s title insurance, every dollar of title risk sits with you.
A title search before closing catches most problems: unpaid mortgages, tax liens, judgments against the seller. But some defects never make it into public records. Forged signatures in the chain of title, unknown heirs with a legal claim, clerical errors in old deeds, and boundary discrepancies can all surface months or years after closing. Without an owner’s policy, you pay out of pocket to defend your ownership or settle the claim, and those costs can run into tens of thousands of dollars.
An owner’s policy is a one-time premium paid at closing, typically around 0.5% of the purchase price, and it covers you for as long as you own the property. On a $400,000 purchase, that is roughly $2,000 for permanent protection.
Consider also ordering a municipal lien search alongside the standard title search. A regular title search examines recorded documents. A municipal lien search checks with local government for unrecorded issues like unpaid utility bills, open building permits, and code violations — debts that can follow the property rather than the seller, meaning you inherit them at closing without knowing it.
Signing the Documents
Once everyone has reviewed the settlement statement and the title agent confirms clear title, signing begins. The stack of paper is dramatically thinner than at a financed closing: no promissory note, no deed of trust, no loan disclosures. Expect to sign:
- The deed, signed by the seller and notarized, which transfers legal ownership to you. The type — warranty deed, special warranty deed, or quitclaim deed — should be specified in your purchase contract.
- The settlement statement, signed by both parties to confirm the financial breakdown.
- Affidavits. The seller typically signs one confirming there are no undisclosed liens, no pending lawsuits against the property, and no parties in possession other than those disclosed. The buyer may sign an affidavit confirming the source of funds.
- Transfer tax declarations, where the jurisdiction requires a form reporting the sale price for transfer tax calculations.
Your signatures must match the name on your government ID. If the deed reads “Jonathan” and your license says “Jon,” the notary may refuse to proceed until the discrepancy is resolved. The whole signing process at a cash closing usually takes 15 to 30 minutes.
How the Money Moves
Funds transfer immediately after signing, and in most cases the title company will not record the deed until the money has landed in their escrow account. Cash buyers typically deliver the purchase price by wire transfer or cashier’s check.
Wire Transfers
Most title companies prefer wires for amounts over $50,000 because the funds are verifiable and settle quickly. Initiate the wire early in the day. Banks have cut-off times for same-day processing, often around 3:00 or 4:00 p.m. Eastern, and missing the window pushes settlement to the next business day. Ask your bank for the Federal Reference Number or IMAD (Input Message Accountability Data) number once the wire is sent, so the title company can locate your funds within the Federal Reserve’s system.2Federal Reserve Bank Services. Fedwire Securities Service Business Continuity Guide Do not consider the deal done until the escrow officer confirms receipt.
Wire Fraud: The Biggest Single Risk
Real estate wire fraud caused over $173 million in reported losses in 2024, with more than 9,300 complaints filed with the FBI.3FBI Internet Crime Complaint Center. 2024 IC3 Annual Report The typical scam: a criminal compromises an email account belonging to your agent, attorney, or title company and sends you “updated” wire instructions pointing to a fraudulent account. Once the money is gone, recovery is rare.
Get wire instructions directly from the title company in person, or call them at a phone number you verified independently rather than one pulled from an email. Be deeply suspicious of any last-minute change to wire instructions sent by email. Before sending any wire, call the title company to confirm the routing and account numbers. After sending, call again immediately to confirm receipt. That 10-minute verification is the cheapest insurance in the entire transaction.
Cashier’s Checks
Title companies generally accept cashier’s checks, with caveats. Many states have “good funds” laws that prohibit the title company from disbursing proceeds until deposited funds have actually cleared, so a cashier’s check may sit in escrow for a business day or two before closing can finalize. Ask your title company in advance whether they accept cashier’s checks and how long their hold period runs.
Federal Reporting Obligations
Paying cash does not make a real estate purchase invisible to the federal government. Several reporting requirements apply, and some put obligations directly on the buyer.
Form 1099-S
The person responsible for closing — usually the settlement agent or title company — must file IRS Form 1099-S to report the sale proceeds, regardless of financing. The only exception is a transfer under $600.4Internal Revenue Service. Instructions for Form 1099-S Proceeds From Real Estate Transactions The form goes to the IRS and to the seller. You do not file it, but it creates a federal record of the transaction.
Form 8300 for Large Cash Payments
If any portion of the purchase price is paid in currency, cashier’s checks, money orders, or traveler’s checks with a face value of $10,000 or less, and the total exceeds $10,000, the recipient must file IRS Form 8300 within 15 days.5Internal Revenue Service. Instructions for Form 8300 Personal checks and wire transfers are not treated as “cash” under this rule. The title company or seller handles the filing, but the form includes your identifying information: name, address, Social Security number, and a transaction description.
FIRPTA When the Seller Is Foreign
If the seller is a foreign person or entity, the buyer is legally required to withhold 15% of the total amount realized and remit it to the IRS.6Office of the Law Revision Counsel. 26 U.S.C. 1445 – Withholding of Tax on Dispositions of United States Real Property Interests On a $500,000 purchase, that is $75,000 held back from the seller’s proceeds. If the buyer fails to withhold and the seller does not pay the tax, the buyer is personally liable for the amount that should have been withheld.7Internal Revenue Service. FIRPTA Withholding The title company typically handles the mechanics, but the legal obligation falls on you. If you have any reason to think the seller is not a U.S. person, raise it with your title agent before closing.
FinCEN Residential Real Estate Reporting
Starting March 1, 2026, FinCEN’s Residential Real Estate Rule requires certain professionals involved in closings to report non-financed transfers of residential property to legal entities or trusts.8FinCEN. Residential Real Estate Rule If you are buying through an LLC, trust, or other entity rather than in your personal name, the title company will collect additional information about the entity’s beneficial owners. The rule applies nationwide.
Recording the Deed and Getting the Keys
After funds are confirmed and all documents signed, the title company sends the notarized deed to the county recorder’s office. Recording is what makes the sale official to the rest of the world: it creates constructive notice, meaning anyone searching the public records will see that you now own the property. Until the deed is recorded, your ownership is technically vulnerable to competing claims.
The title company usually handles recording the same day or the next business day. Processing times at the recorder’s office vary, and the original recorded deed typically arrives by mail within a few weeks. Recording fees vary by jurisdiction — some counties charge a flat fee per page, others base it on the sale price — and the cost is already accounted for on your settlement statement.
Once the deed is on its way and funds have been disbursed to the seller, you get the keys: house keys, garage door openers, gate remotes, security system codes, mailbox keys. Some closings build in a short gap between signing and possession. The purchase contract controls when you actually take physical control of the property, which is not always the moment the ink dries.
What to Handle After Closing
Walking out with the keys is not the last step. A few tasks need attention in the days and weeks after closing.
- Call the county tax assessor directly to update your mailing address. It can take months for the recorder’s office to notify the tax collector of the ownership change, and if the tax bill goes to the seller’s old address and you miss a payment, the penalties fall on you.
- Confirm your homeowners insurance is active. If you bound a policy before closing, verify that the effective date matches or precedes the closing date. If you have not purchased coverage yet, do so immediately.
- Transfer utilities. Put water, electric, gas, and trash accounts in your name as of the closing date. Utility debts can sometimes attach to the property rather than the person.
- Change the locks. You have no way of knowing how many copies of the house key exist.
- Store your closing documents in a safe or fireproof box: the recorded deed, settlement statement, title insurance policy, and survey. You will need the settlement statement for your tax return, and the title policy is useless if you cannot find it years later.
If you purchased owner’s title insurance, the policy stays in effect for as long as you own the property. Nothing to renew, no additional premiums. If a title defect surfaces later, contact your title insurance company directly; they handle the legal defense at their expense, up to the policy limit.