BIC Tip #1076: Always Verify Buyer Funds Before Writing Offers

The Setup

It’s a hot market. Your buyer is excited. You’ve got a property they love, and they’re ready to make an offer right now.

But before you rush to write it up — stop and ask one question:
“Can they actually perform?”

Whether it’s cash or financing, your first job as a broker is to verify before you qualify.

The Rule

Under NCREC’s honesty and disclosure rules, a broker must not make false or misleading statements in the course of representing a client — including to the other side of a transaction.

That means if you submit an offer claiming the buyer is “fully approved,” “cash-ready,” or “able to close quickly” without verifying it, you could be in violation of:

• 21 NCAC 58A .0105 – Prohibited acts.
   
• 21 NCAC 58A .0115 – Misrepresentation of facts or failure to disclose material facts.
   

Even unintentional exaggeration counts. If the buyer can’t close — you just became part of the problem.

Cash Buyers Aren’t Always “Cash Ready”

Plenty of buyers say they’re paying cash.
But is the cash available, liquid, and in their name?

Always ask for proof of funds — not just a screenshot of an account summary, but something verifiable from a financial institution.
It protects your credibility and the seller’s confidence in the transaction.

Financed Buyers Need More Than a Pre-Approval… They Need a Current One

A lender letter from three months ago is about as useful as last year’s market data.
Rates change. Programs change. Employment situations change.
Always confirm the pre-approval is current, accurate, and matches the offer terms.

💡 Pro Tip: If you’re a BIC — make it firm policy that no offer leaves your office without current verification attached.

The Risk

Here’s where brokers get burned:

📘 Example:
An agent submits an offer stating the buyer is “fully approved.” The seller accepts, the listing comes off the market, and the deal collapses when the loan is denied.
Now the seller’s out of time, options, and patience — and the agent is facing a misrepresentation complaint to the Commission.

The Why

Verification isn’t just about paperwork — it’s about honesty, professionalism, and protecting your license.

A buyer’s enthusiasm shouldn’t override your responsibility to verify facts. When you skip that step, you risk:

• Losing trust with cooperating brokers.
   
• Damaging your reputation with sellers.
   
• Triggering NCREC complaints for misrepresentation.
   

The BIC Takeaway

👉 Trust your buyers — but verify their finances first.
No proof of funds? No pre-approval? No offer.
A missing document today can turn into a Commission problem tomorrow.

Verification takes minutes. Complaints last months.
Stay sharp. Stay compliant. Stay Notorious.

Final Word from The Notorious B.I.C.

Professionalism isn’t just about writing contracts — it’s about earning trust through accuracy.
Every time you verify before you qualify, you’re protecting your client, your firm, and your name.
That’s how you stay out of trouble… and stay Notorious. 💼🔥