Lynn B. Friedman - Atlanta Homes ODAT Realty: Atlanta Internet Buyers: Proof of Cash Funds Letter Must For Everyone

Atlanta Internet Buyers: Proof of Cash Funds Letter Must For Everyone

Atlanta Internet Buyers:
Proof of Cash Funds Letter Must For Everyone

Atlanta Internet Buyers - Proof of Funds Letter A Must For Everyone for every purchase. Any offer must be substantiated for the Seller to consider it. Any person could say they have the money in Cash to make the offer more appealing. The PoF Letter verifies the availability of the money.

While one wishes it isn't true, agents have (KNOWINGLY) submitted Cash offers to get to the top of consideration and then request a change to Mortgage once their contract is accepted. Not an honest approach...


In the Georgia Association of Realtors Forms, F79 deals with an ALL CASH SALE.  Included in Item #1 is a Buyer option to supplement the capacity for All Cash with a Mortgage. If the Seller agrees to that stipulation, then the change is already part of the Purchase and Sale Agreement. 

The key component is transparency and honesty within the Offer.

GAR Form F79, in Item #3, includes the phrase "funds ... and/or assets". That means the Seller may determine that selling Assets is, or is not, acceptable. Why? Because  ABLE TO GET the Cash is not the same as HAVING the Cash.


Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents, listed the following items that are not actually Cash in one of her posts :

  In the process of selling stocks or mutual funds

-   Holding a certificate of deposit that has not yet matured

-   Borrowing money from a relative

-   Refinancing a personal residence to raise the cash

-   Waiting for a probate court to distribute assets

-   Borrowing against securities

-   Liquidating funds from a retirement account

-   Obtaining a mortgage secured to the property they are buying



 Cash means CASH - not the ability to get it.  The Seller needs PROOF that if the offer is accepted, the transaction will progress and Close on time.


 In addition:

  • The Seller may ask the Buyer for the Proof of Funds Letter to be Notarized before the letter will be accepted.
  • The Seller may ask for a different form of Proof of Funds which could be a copy of the Account Statement for the Cash. [Of course, any account numbers should be redacted before the statement is submitted.]

Most Atlanta Internet Buyers are looking for the best deal they can get for their purchase. Having their Proof of Funds Letter ready ahead of time is a very important step.

Readiness may make the difference between losing out because Buyer had not prepared ahead or being the successful Offer for the Purchase.

Icon courtesy of "anonymous".
Not suggested as a Legal Document since author is not an attorney.

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Comment balloon 6 commentsLynn B. Friedman • January 01 2018 01:23AM


Great post, Lynne. People, including many agents, really don't understand "cash" in a transaction. As far as I'm concerned, prove that you have the cash on hand... if you want to finance, that's fine, but first prove that you have the cash.

Posted by Nina Hollander, Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor (Coldwell Banker Residential Brokerage ) about 2 years ago

Lynn,  Are you saying that a brokerage account with unsold stocks and mutual funds is not considered cash?  Would it have to be actual cash in the account and not the value of stock or mutual funds?

Posted by Tim Maitski, Truth, Excellence and a Good Deal (Atlanta Communities Real Estate Brokerage) about 2 years ago

Very important post Lynn B. Friedman  and something everyone should ask for

Posted by Hannah Williams, Expertise NE Philadelphia & Bucks 215-953-8818 (Re/Max Eastern inc.) about 2 years ago

Dear Lynn,  

We look at liquidating those non-cash "cash" assets - inquire as to how long it takes to liqidate and when the funds will be in the account.  In my area, for the most part, proof of funds is a current bank statement. Rarely do I see a letter from the bank.  

Happy 2018 - Happy Happy Everything from Sunny San Jose, CA! 

Posted by Kathleen Daniels, San Jose Homes for Sale-Probate & Trust Specialist (KD Realty - 408.972.1822) about 2 years ago

Lynn, Happy New Year, here in California as well as I am confident anywhere in the US, sellers want the Proof of Funds (POF) before they would consider accepting an All Cash Offer. The California Association of Realtor Purchase agreement allows 72 ours from acceptance to provide POF, good agents will not allow that, rather they want the buyer to provide it with the offer. The ones that have real funds do not mind and understand.... I personally prefer a copy of a Bank Account with the account blackened out... Great Localism Post to see how business id done in GA...

Posted by Endre Barath, Jr., Realtor - Los Angeles Home Sales 310.486.1002 (Berkshire Hathaway HomeServices) about 2 years ago

Lynn, good job on getting this blog out. Google's spiders and crawlers use blogs for their SEO rankings and love original content and the right keywords.

Posted by Andy Brown-Climer School of Real Estate, The Best Real Estate School in Florida (The Climer School of Real Estate) about 1 year ago