Why Cash is Still King in Property Transactions

Published byKaren Crothers

26th May 2025

As we approach the summer months, many will be looking to move home, and be in the position to make a cash offer.

A cash offer on a house means that the buyer has the full purchase price available to them to pay for the property outright without the need to obtain a mortgage or sell a property. The funds should already be in their bank account or within readily available investments.

Unfortunately, sometimes people fail to understand exactly what is meant by a cash offer, and this can often result in confusion, frustration and delay during the conveyancing process. Most importantly, it can result in a seller often feeling misled and suddenly finding themselves at the top of a lengthy chain when they thought they had a cash buyer.

For example, strictly speaking, an offer which is subject to any of the following is not a cash offer:
• Funds being obtained from a third party such as a family member or friend
• Funds from the sale of property which does not yet have concluded contracts (missives)
• Funds which are tied up or conditional upon another event taking place

Even if you intend to sell your property weeks before you buy, unless you have a binding contract for the sale of that property, any offer for your new property must be subject to sale as there is no guarantee that your sale will go through on time.

So, what are the advantages of a cash offer? They include:
• Availability of funds: The buyer has the funds available to them at the point they make their offer to buy the property outright.
• Chain free: There is less chance of the sale falling through because of a third party.
• Faster: As the buyer does not require to wait for a mortgage offer or to sell a property, the conveyancing process can be expedited, sometimes in as little as four weeks.
• Potential for lower offers: As a cash buyer is often able to complete the process quicker, the seller may be willing to accept a lower price.
• Less risk: Cash offers, as they are not dependent upon on third parties, are less risky.

It must be remembered however that, as with any purchase, the buyer’s solicitor is required to verify the legitimacy of the funds being used towards the purchase in compliance with Anti-Money Laundering regulations. Depending on how and from where the buyer obtains their money, this can be a lengthy and detailed process.

So, while the use of physical cash may be diminishing in our society, when it comes to submitting an offer for a property cash is still very much king, not only reducing the level of risk involved but also potentially reducing the length of time required between an offer being submitted and keys being exchanged.

If you require any advice relating to whether you would be a cash buyer, or any aspect of the conveyancing process, please do not hesitate to get in touch on 01786 822296 to discuss your enquiry with a member of our team.

This article first appeared in The Wire magazine