Contract Red Flags When Selling an Inherited House In Georgia: What You Need to Watch For

If you’ve inherited a house in Georgia, chances are you’re getting calls, texts, letters, and offers from investors who want to buy it.

The challenge isn’t getting offers—it’s figuring out which ones are legitimate.

At Arborview Homebuyers, we specialize in probate and inherited properties. We buy houses for cash, and if selling directly isn’t the best fit, we also have a handpicked network of probate real estate agents across the country who can help you sell traditionally.

I’ve covered offers and cash buyers in other videos, but today I want to focus on something even more important: contract red flags.

There are plenty of legitimate investors out there. Unfortunately, there are also investors who don’t actually have the money to buy your property. Instead, they’re hoping to wholesale your contract to someone else. There’s nothing inherently wrong with wholesaling, but when it’s done poorly, it often leaves sellers frustrated after wasted weeks and a deal that falls apart at the last minute.

Here are the biggest contract red flags you should watch for before signing anything.

1. An Unusually Long Closing Timeline

Most investors advertise that they buy houses for cash and close quickly.

That’s become such a common marketing claim that it doesn’t really tell you much anymore.

Instead of looking at the advertisement, look at the contract.

I’ve seen investors promise a fast cash purchase, then send over contracts with closing dates 30, 45, or even 60 days away. In my opinion, that’s a long time for a true cash investor.

At our company, most closings happen within two to three weeks. We’ve closed even faster before, but anything under two weeks can become difficult because of things outside anyone’s control.

For example:

• HOA information may need to be obtained.
• Mortgage payoff statements can take time.
• Delinquent property taxes sometimes have to be verified before closing.

Those situations occasionally delay closing, so two to three weeks is usually a realistic timeline.

Now, if a seller needs extra time because there’s a tenant in the property or another unique circumstance, that’s completely different. But if an investor automatically wants 30 to 60 days, it’s worth asking why.

2. A Due Diligence Period That’s Too Long

Another major red flag is an excessively long due diligence period.

Depending on your state, this may also be called the inspection period or option period.

This is the timeframe during which the buyer evaluates the property and can usually cancel the contract without losing their earnest money.

At our company, our standard due diligence period is about 7 to 10 days, which is fairly common.

But I’ve seen contracts that include a 30-day due diligence period with closing scheduled on Day 31.

That means the buyer can back out almost until the day before closing without any real consequence, leaving you right back where you started.

I’ve talked to sellers who actually showed up at closing only to discover the investor never came. In many cases, these were inexperienced wholesalers who couldn’t find another buyer to assign the contract to.

That’s not how we operate.

If I tell you I’m buying your house, I’m buying your house. That’s simply the right way to do business.

Need Someone to Review an Offer?

If you’re comparing multiple cash offers on an inherited property and aren’t sure which contract is the right one, don’t feel like you have to figure it out on your own.

A quick review of the closing timeline, due diligence period, earnest money, and contract language can often reveal whether a buyer is serious—or whether there are red flags that could cost you time and money.

If you’d like a second set of eyes on your contract, we’re happy to help. Simply fill out the form below, and we’ll review it with you, explain anything that’s unclear, and help you understand your options.

There’s absolutely no obligation, no pressure, and no cost for our review. Our goal is simply to help you make an informed decision before you sign.

3. Little (or No) Earnest Money

Another thing to pay close attention to is the earnest money deposit.

The rules vary by state. Some states require earnest money for real estate contracts, while others don’t.

For example, here in Georgia, earnest money isn’t legally required for a valid real estate contract. If you’re unsure about your state’s requirements, the best person to ask is a real estate attorney who practices in your area.

Generally speaking, though, earnest money tells you how serious a buyer is.

A deposit of around 1% of the purchase price has been common practice for years, although the amount can technically be whatever both parties agree to.

There have been times when we’ve increased our earnest money deposit specifically to show a seller we were serious about buying their property.

If someone is only putting down five dollars—or no earnest money at all—you should at least question how committed they are to closing.

4. Hidden “Out Clauses”

One of the biggest mistakes sellers make is signing a contract without actually reading it.

Some investors use long state-approved contracts that contain pages of legal language. Others use custom contracts.

When we buy properties directly from sellers, we use a simple attorney-drafted contract because there’s no reason to make it more complicated than it needs to be.

More importantly, we don’t make it one-sided.

Some investor contracts include clauses that heavily favor the buyer while giving the seller very little protection.

One example I hear all the time is a clause that says the purchase is “subject to partner approval.”

Sounds harmless enough.

But who is the partner?

Sometimes you never find out.

That clause gives the buyer an easy way to walk away later by simply saying, “My partner decided not to move forward.”

I’ve joked before that sometimes it feels like their partner was their dog.

Those are exactly the kinds of clauses you should be watching for.

If something in the contract doesn’t make sense, ask questions.

Better yet, have your attorney review it.

If a seller asks me whether their attorney can review our contract, my answer is always yes. I’d gladly send it over.

A legitimate buyer shouldn’t be afraid of attorney review.

Take Time to Understand What You’re Signing

Before you sign any purchase agreement, make sure you understand every section.

If needed, ask the buyer to walk through the contract with you paragraph by paragraph.

That’s something we regularly do with sellers because we want them to know exactly what they’re agreeing to.

Once everyone has verbally agreed to the terms, don’t wait too long to get the contract signed and returned.

Title companies and real estate attorneys generally won’t begin the title search or start preparing for closing until they have an executed contract.

The sooner it’s signed, the sooner the closing process can begin.

Electronic Signatures Are Common Today

Most of our contracts are signed electronically through DocuSign.

Since the Electronic Signatures in Global and National Commerce Act took effect in 2000, electronic signatures are generally recognized as legally valid. However, some states have additional requirements for certain transactions, so it’s always a good idea to check with a local real estate attorney if you have questions.

Final Thoughts

When you’re selling an inherited house in Georgia, don’t focus only on the purchase price.

Take a close look at the contract itself.

A long closing timeline, an unusually lengthy due diligence period, little or no earnest money, and vague cancellation clauses can all be signs that a buyer may not be as committed as they claim.

Taking a few extra minutes to review those details could save you weeks of frustration later.

If you’re selling an inherited property and would like a cash offer, we’d be happy to make one.

And if selling traditionally makes more sense, we also have a handpicked network of probate and inheritance real estate specialists across the country who can help you get your property sold.

Whether you sell directly or list with an agent, our goal is simply to help you make the decision that’s right for your situation.