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Guide

"We buy houses" scams in Texas: the five things that never happen in a real sale

Most people who send a postcard saying "we buy houses" are legitimate investors. The ones who aren't follow a pattern, and Texas law and TDI's fraud guidance make the pattern easy to spot.

Updated October 2026

Five things that never happen in a real sale

  1. Money outside the title company. Earnest money, closing funds, everything runs through escrow. TDI's guidance on real estate fraud puts this first: funds go through the title company, never directly to a person.
  2. Signing the deed early. You sign the deed at closing, when the money is wired. Anyone who wants the deed "to get started" or "to stop the foreclosure" is taking your house.
  3. A notary the other side insists on. TDI flags remote or buyer-supplied notaries as a red flag. Use the title company's.
  4. Fees to you up front. Legitimate buyers pay their own costs. "Processing fees" charged to the seller are a scam signal.
  5. Pressure to sign today. A real offer is good tomorrow.

The assignment question

Ask: "Are you buying this house, or assigning the contract to someone else?" Texas law (Occupations Code 1101.0045 and Property Code 5.086, since September 2017) requires anyone selling an option or assigning a contract to disclose that they hold only an equitable interest. Assignment isn't illegal and isn't necessarily bad for you, but an evasive answer is a bad sign, and an assignment can fall through if no end buyer appears. Ask what protects your closing date and your earnest money if that happens, and get it in the contract.

Also check

Report suspected fraud to the Texas Attorney General's consumer protection division and local law enforcement, as TDI advises.

Questions people ask

Is it a red flag if a buyer wants to close fast?

No; speed is the product. The red flags are about where the money goes and what you sign before closing.

Can I back out after signing?

Depends on the contract. The option period, if any, is the buyer's; your right to cancel is whatever the contract says. Read it or have an attorney read it before signing.

What if I already signed something I'm unsure about?

Call a real estate attorney today. If you signed a deed, call immediately.

Related

Get a written, no-obligation offer within days

You get a call within 24 hours, usually the same day. One local buyer looks at the property as it is and gives you a written offer with a closing date. No repairs, no showings, no commission, no fee to you, and no list of companies calling. Buyers in this network typically pay the closing costs; the written offer spells out exactly what they cover.

  • 1. Tell us the address, the property type and the situation. Two minutes.
  • 2. You get a call within 24 hours. Your request goes to one North Texas buyer, not to a list.
  • 3. They walk the property once and put the offer in writing. Take it, or take it to an agent and compare.

A cash as-is offer is below full retail value. We say that up front because the buyer will too.

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