Los Angeles seller guide
How Do I Check a Cash Buyer's Proof of Funds?
The short answer
Check a cash buyer’s proof of funds by requesting a recent bank or brokerage statement or institution letter showing the buyer’s name and enough available funds, then matching that name to the buyer on the California purchase contract. Resolve any gaps before signing. If assignment is proposed, California Civil Code section 1458 addresses transfer of rights; check whether the named buyer controls the funds.
Justin Borges of The Borges Real Estate Team at eXp Realty (DRE #01940318, (213) 262-5092) helps Los Angeles sellers check a cash buyer’s proof of funds by comparing recent account evidence with the buyer named in the offer. Request a bank or brokerage statement or institution letter showing the buyer and enough available funds. Match the name to the contract and ask about any difference before signing.
Review the buyer’s funds
Talk through the proof and terms attached to your cash offer before you decide.
What should proof of funds show?
A useful proof-of-funds document identifies the account holder, the financial institution, the date and enough available funds to cover the buyer's proposed purchase and obligations. A recent bank or brokerage statement or a letter from the institution can supply that information. Ask your California listing agent to compare the name with the exact buyer named in the offer and the amount with the cash needed under its terms.
A statement is a snapshot, not a reservation of money for your sale. A brokerage balance may include assets that must be sold or transferred before closing. Ask the buyer to explain which funds are liquid, any conditions on access and how the money will reach escrow. An institutional letter is more useful when it identifies the customer and available amount rather than merely saying the customer has a relationship with the institution.
Privacy matters. A buyer can obscure account numbers and unrelated transactions while leaving the name, institution, date and usable balance legible. If the balance or name is hidden, your agent cannot make the comparison you need. Request a version that preserves sensitive details without concealing the evidence. Use a secure delivery method agreed upon with your agent and avoid forwarding financial records to people who do not need them.
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| Evidence | What to look for | Follow-up |
|---|---|---|
| Bank statement | Account holder, date and available balance | Ask whether funds are accessible for closing |
| Brokerage statement | Holder and value of assets | Ask what must be sold and transferred |
| Institution letter | Customer name, date and available funds | Ask the institution to confirm the letter through an independently obtained contact |
Before you accept an offer on a Highland Park bungalow, match the account holder and available balance to the buyer and the amount needed to close.
How does your agent review the proof before you sign?
Before you accept a Los Angeles cash offer, give your listing agent both the complete offer and the proof. Ask for a comparison of the buyer's legal name, purchase price, proposed deposit, closing terms and any conditions affecting the funds. An offer in an individual's name accompanied by a company account, for example, needs an explanation and evidence connecting the account to the person who will perform.
Ask your agent to identify the document's date and any gap between the amount shown and the buyer's total cash obligation. Closing costs and other agreed charges can affect what the buyer needs beyond the purchase price. If multiple accounts are presented, ask how the balances relate to the buyer and whether each can be accessed. A screenshot without identifying details or an undated letter deserves a follow-up, not an assumption that the offer is funded.
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For an institution letter, your agent can ask the buyer to authorize confirmation and use contact information independently obtained from the institution, rather than relying only on a number printed on the document. The institution may decline to discuss a customer's account without consent. Ask what was actually confirmed and what remains unverified; a conversation confirming a letter is not a promise that the balance will remain available.
Put any requested proof and timing into the offer or a written counteroffer with your agent's help. California purchase forms change, so check the version in your contract and the filled-in terms rather than assuming a standard deadline. The signed terms control what evidence the buyer must provide and when (California Department of Real Estate, DRE Reference Book, Chapter 20: Basic Contract Provisions and Disclosures in a Residential Real Estate Transaction, checked November 5, 2026).
Put the requested evidence and its delivery deadline in writing before you sign.
Check the offer before signing
Talk through the buyer’s documentation and any gaps in the offer.
What red flags should you question?
A name mismatch is a reason to ask questions, not proof of fraud. A buyer might plan to purchase through an entity or rely on a partner's money. Ask who owns the account, who controls the funds, who will sign the purchase agreement and what written authority connects those parties. Look for written authority linking the account owner and the buyer before treating the funds as available.
Pressure to accept without documentation is another reason to pause. A buyer may describe an offer as cash while planning to locate an investor after signing. Ask whether the named buyer can close with its own accessible funds if no replacement buyer appears. An unexplained third-party statement does not answer that question, even when the balance appears large enough.
Other gaps include a balance hidden by redaction, a stale document, an account holder who is not identified, or a letter that does not state available funds. Ask for updated, readable evidence and an explanation in writing. Do not treat a polished logo, a large deposit promise or a verbal assurance as a substitute for connecting the money to the buyer and the transaction.
| Concern | Question to ask | What helps resolve it |
|---|---|---|
| Different account name | Who owns and controls the funds? | Evidence connecting that owner to the buyer |
| Balance hidden | Can the available amount be shown securely? | A readable balance with account numbers obscured |
| Third-party funds | Is funding committed and available to this buyer? | Written explanation and supporting evidence |
| Pressure to sign | Why can proof not be reviewed first? | Agreed written terms and satisfactory documentation |
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Do not count funds as verified when the balance is hidden or the account holder is unidentified.
Who should receive the document and what can escrow verify?
Send proof securely to your listing agent or the escrow officer through a channel they identify. Your agent can review the offer and relay unresolved questions. Ask escrow what it will verify, what documentation it needs, and whether the buyer has authorized any contact with the institution. Do not assume escrow has authenticated a statement merely because someone sent it a copy.
California escrow is a neutral process for holding documents and funds under written instructions. Ask the officer to distinguish receipt of a document from any independent verification and to tell you when the deposit has actually been received. The California Department of Real Estate describes escrow's role and the importance of written transaction instructions (California Department of Real Estate, Escrow Information for Consumers, checked November 5, 2026).
For a Los Angeles sale, confirm the escrow holder and delivery instructions using a trusted contact you already know. If payment instructions change unexpectedly, verify them directly through an independently obtained number before anyone sends money. A copy delivered to escrow does not establish that the institution independently verified it.
Confirm whether escrow received the deposit and whether anyone independently verified the proof.
Want a second opinion on your next step? Talk to Justin about your sale
How is proof of funds different from earnest money?
Proof of funds shows evidence of resources; earnest money is a deposit made under the purchase agreement. A document showing a balance does not mean a deposit has reached escrow, and a deposit alone does not show that the buyer has the rest of the purchase money. Review the amount, recipient, due date and terms in your signed California contract, then ask escrow to confirm receipt.
The deposit is generally held by the escrow holder under the transaction instructions, not handed directly to you as proof that the sale is certain. Ask your agent what the agreement says about contingencies, notices and release of funds. A cash buyer may still have contractual rights to investigate or cancel. The signed contract controls the agreed deposit and contingency terms.
If a transaction fails, a disputed deposit is not automatically yours. The Department of Real Estate explains that release requires both parties' agreement; a dispute may require mediation, arbitration or a court outcome. Escrow does not decide who is entitled to disputed funds (California Department of Real Estate, DRE Reference Book, Chapter 20: Basic Contract Provisions and Disclosures in a Residential Real Estate Transaction, checked November 5, 2026).
California Civil Code also addresses refusal to sign a deposit release after a written demand, including an exception for a good-faith dispute. This section covers only one-to-four-unit homes the buyer intends to live in, so it may not apply when the buyer is an investor or wholesaler (CA Civil Code, California Civil Code section 1057.3, checked November 5, 2026).
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A disputed deposit is not automatically released to the seller; check the written release and contract terms.
Review the deposit terms
Discuss the deposit and what your agreement says about its release.
How does an assignment clause affect the funds check?
California Civil Code section 1458 addresses transfer of rights, and an assignment clause may allow the named buyer to transfer contract rights to someone else (CA Civil Code, California Civil Code section 1458, checked November 5, 2026). A prospective end buyer’s statement does not establish that the named buyer controls the funds, so request evidence connecting the funding to the transaction and read more about real estate wholesalers.
Clarify who will close
Talk through the assignment language and the funding evidence.
What if the buyer will not share proof?
Ask why the buyer is reluctant and whether a secure statement with account numbers obscured or an institution letter would address the concern. Your listing agent can request delivery to escrow or review through an agreed secure channel. The buyer may have legitimate privacy concerns, but a seller still needs enough information to assess an offer.
If the buyer will not provide meaningful evidence, consider a written counteroffer requiring acceptable proof on agreed terms, or compare another offer. Review the whole agreement with your agent, including the deposit, contingencies and assignment provisions. An attractive price cannot by itself establish access to closing funds. For an agreement already signed, review its proof and contingency terms before deciding what to do.
A fast or as-is California sale also does not erase disclosure obligations. Civil Code section 1102.1 says the applicable Transfer Disclosure Statement requirement cannot be waived by an as-is provision and preserves duties to disclose material facts. Identify the disclosures that apply to your property (CA Civil Code, California Civil Code section 1102.1, checked October 29, 2026).
Justin Borges also buys homes directly for his own portfolio and has investor buyers. If Justin is the buyer, his interest in the purchase differs from yours as seller. You can ask for independent advice and compare the terms and evidence of any competing offer; no price is promised.
Not sure which option fits you? Text (213) 262-5092
If your home is in ZIP code 90049, 90263, 90265, 90272, 90290, 90402, 91001, 91024, 91103, 91104, 91106, 91107, 91301, 91302 or 91320 and the offer came unsolicited before you listed, California Civil Code 2079.26 may let you cancel within four months of signing. That law is set to expire January 1, 2027; ask a California real estate attorney about your situation, including any deposit dispute (California Civil Code section 2079.26, checked November 5, 2026).
If the buyer cannot provide meaningful evidence, compare another offer or negotiate a written proof requirement before accepting.
Frequently asked questions
Can a buyer redact an account number?
Yes. A buyer can protect account numbers and unrelated transactions while leaving the account holder, institution, date and available balance readable. Ask your agent to arrange secure delivery and identify any missing detail. If the remaining document cannot connect sufficient available funds to the named buyer, ask for another form of evidence before deciding.
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Does a bank letter guarantee the buyer will close?
No. A bank letter can provide evidence of available funds at the time described, but it does not reserve them for your Los Angeles sale or eliminate other contract conditions. Ask your agent what the institution actually confirmed, whether the buyer can access the funds and what obligations remain under the signed agreement.
What if the offer is from an LLC but the statement is personal?
Ask who owns the account and how the funds will be made available to the LLC named in the offer. Your agent can request documentation connecting the parties and the transaction. Look for written authority connecting the account and the LLC if that relationship is unclear.
Can a buyer use money from a relative or partner?
A buyer may propose third-party funds, but a statement in someone else's name does not establish that the buyer can use the money. Ask for a written explanation, evidence of the arrangement and proof that the funds are accessible for this purchase. Identify any unresolved conditions before relying on those funds.
Should I accept a screenshot of an account?
A screenshot may omit the account holder, date, institution or context needed to evaluate it. Ask for a recent statement or institution letter that shows those details and the available balance while protecting sensitive account numbers. Your agent can explain what remains unverified and arrange secure delivery to the appropriate recipient.
Weighing your options on the sale? Talk to Justin about your sale
Does receiving a deposit mean the rest of the money is ready?
No. A deposit received by escrow is separate from evidence that the buyer can provide the balance and meet other agreed costs. Ask escrow to confirm receipt and ask your agent to review the remaining funds and contract terms. Neither a deposit nor a statement guarantees the transaction will close.
Compare your cash offer
Review the buyer’s evidence and the contract together before choosing your next step.
Sources
- DRE Reference Book, Chapter 20: Basic Contract Provisions and Disclosures in a Residential Real Estate Transaction, California Department of Real Estate (dre.ca.gov). Checked October 29, 2026.
- Escrow Information for Consumers, California Department of Real Estate (dre.ca.gov). Checked October 30, 2026.
- California Civil Code section 1057.3, California Legislature (california.public.law). Checked October 30, 2026.
- California Civil Code section 1458, CA Civil Code (california.public.law). Checked November 5, 2026.
- California Civil Code section 1102.1, California Legislature (california.public.law). Checked October 29, 2026.
- California Civil Code section 2079.26, CA Civil Code (california.public.law). Checked November 5, 2026.
About the author
Justin Borges
REALTOR® | CA DRE #01940318
Justin writes LA Metro Home Finder’s guides to 30+ communities across the San Gabriel Valley, Northeast LA, and greater Los Angeles, and has closed $200M+ in career sales with a 106% average list-to-sale ratio.
Justin has held an active California DRE salesperson license since October 2013. View Justin’s author profile.
This guide is educational and is not legal, tax, title, lending, or insurance advice. Contract forms, statutes, and lender rules change. Confirm the terms that apply to your sale with your escrow officer, title officer, lender, or a California real estate attorney.
