Are Cash Home Buying Companies Legit? How to Check a Cash Buyer in Tennessee

There is no shortage of companies that say they buy houses in Bartlett, TN for cash, and it's easy to lump them all together when you're deciding who to trust. Some of them are real, established local buyers. You don't have to guess which is which. Tennessee gives homeowners a handful of free, public ways to check who they're actually talking to before signing anything. We're a cash buyer ourselves, so run every one of these checks on us too.

See also: What's the Hardest Month to Sell a House in the Memphis Area?.

A cash buyer doesn't have to be a licensed real estate agent

Under Tennessee law, someone who is buying or selling real estate they own themselves is exempt from the state's real estate broker licensing requirement. Tennessee Code Annotated § 62-13-104 sets out that owner exemption. That means a "we buy houses" company making you a direct cash offer as the buyer, not as your agent, is not required to hold a real estate license just to do that. On its own, this is normal and not a red flag. It becomes a problem if a company falsely claims to be a licensed agent or broker when it isn't, which is easy to check (see below).

Confirm the business is actually registered in Tennessee

Before you get far into a conversation, look up the company's exact legal name on the Tennessee Secretary of State's free Business Entity Search. It's quick and shows the entity's status, formation date, and registered agent. If the name on their card or contract doesn't turn up, or shows as inactive or dissolved, that's worth asking about directly before you go any further.

If someone says they're a licensed agent, verify it for free

Some cash-buyer outfits also work through a licensed real estate agent, especially if listing the house is even a possibility alongside a cash sale. The Tennessee Department of Commerce and Insurance runs a free public license search where you can check whether a real estate license is active, see the license number, and see any disciplinary history, before you rely on anything that person tells you about value or process.

Check the county deed records

You can use the Register of Deeds' free public search to see whether a company has actually closed on other houses in the area under its own name.

Ask to see proof of funds

A cash buyer who can actually close should be willing to show proof of funds, a bank or brokerage statement (account numbers can be redacted) showing the money is on hand to pay for your house without financing. Ask for this before you sign anything and before you take your house off the market for anyone. A serious buyer will not hesitate to provide it.

Know your legal protection either way

Whether or not a company is licensed, Tennessee's Consumer Protection Act makes it illegal for any business to use unfair or deceptive practices, including in a real estate sale (Tenn. Code Ann. § 47-18-104). If you're harmed by a deceptive practice, the same law lets you sue for your actual losses, and up to three times that amount if the violation was willful (Tenn. Code Ann. § 47-18-109). That protection exists no matter which company you end up selling to.

Frequently asked questions

Do "we buy houses" companies need a Tennessee real estate license?

Not if they're buying the property directly, for themselves, as the actual buyer. Tennessee's owner exemption (Tenn. Code Ann. § 62-13-104) covers that. A license is only required if the company or person is acting as your agent or broker in the sale.

How do I check if a cash buyer is a real, legitimate company?

Look their exact legal name up on the Tennessee Secretary of State's Business Entity Search, check whether they've actually closed on other houses in the area under that name through the county's deed records, and ask for proof of funds before you agree to anything. All three are free and don't take long.

What if a cash buyer pressures me or won't put their offer in writing?

You're free to walk away. A legitimate buyer will put the offer in writing and give you time to get a second opinion.

If you'd like to see how a straightforward, no-pressure cash offer actually works for a house in Bartlett, you can get a free cash offer on your Bartlett home and decide for yourself, on your own timeline, with no obligation to accept.