Cash Purchase Law and Legal Definition

Cash purchase refers to a property acquisition with no financing. It is important for purchase contracts to specify if there will be a cash purchase or a financed purchase, because the two represent different responsibilities on the part of the closing company. Compared to finance purchase, responsibilities in cash purchase are less. Usually a seller offers a lower price for a cash purchase since the buyer could close payment immediately, and transaction costs to the seller would be less than for a sale involving financing.