In a "we buy houses for cash" transaction, you first agree on a price and sign a purchase agreement with the home buying company, after which an escrow account is opened with a neutral third-party, usually a title company. This ensures all parts of the contract are fulfilled by both parties. If required, the home buying company deposits earnest money into the escrow account as a show of good faith. The escrow company then conducts a title search to confirm there are no liens or issues that could affect the transfer of the property, and arranges for title insurance. Although often "cash for houses" companies buy properties "as is", if the contract stipulates, inspections or appraisals might occur. Once all conditions and requirements of the contract are met, the closing date is set. On this date, the buyer deposits the purchase funds into the escrow account. These funds are used to settle any existing obligations on the property, such as mortgage or liens, with the remainder going to the seller. Finally, the title company records the transaction, indicating that ownership has transferred from the seller to the buyer, and the transaction is concluded.