Every cash-offer PSA has ten sections. Most are boilerplate. Three of them define 90% of your outcome. Here's what each section does and where to read carefully.
Identifies the seller, the program entity that's buying, and the property by legal description. Mostly boilerplate. The one thing to verify: the program entity on the PSA matches the brand you've been talking to. Many programs use a special-purpose LLC (e.g., “Zoom Casa Acquisition Entity, LLC”) as the named buyer. That's fine — but verify it's the same entity that appears on the program's state registration.
The number. Confirm it matches what was quoted. This section usually also specifies how the price breaks down: first-close advance vs. waterfall share. In a Cash Offer Plus PSA, expect to see two distinct amounts.
Watch for: Language like “subject to final inspection adjustment” or “subject to appraisal reconciliation” without a cap. That language gives the program unilateral authority to reduce the price after you've signed. A clean PSA either omits this language or caps the adjustment at a specific percentage (2% is typical).
What has to be true for the program to close. Standard conditions include clear title, no new liens, no material change to the property's condition. Standard. Read it once; you'll rarely negotiate here.
One of the three sections that define your outcome. This is where the program reserves the right to deduct for repairs. Red flags:
A clean Section 4 requires line-by-line documentation of repair items, a credit calculated at market replacement cost (not program-preferred contractor), and a seller right to cure at the seller's cost.
(Cash Offer Plus and trade-up products only.) Defines who handles the retail listing, on what commission, and under what guidelines. This is where partner-agent requirements and listing commission rates appear. Zoom Casa, HomeLight, and Knock are reasonably transparent here; several smaller programs have language here that requires you to use “an approved agent from Program's network” on terms set by the program, effectively removing your control of the listing.
The second of the three critical sections. This defines the interest, occupancy, and maintenance obligations between first close and second close. Variables you want pinned:
The third critical section. The definition of “overage” and the seller's share.
A clean waterfall looks like: Sale price − appraised value = overage. Seller receives X% of overage, less the program's service fee and retail-side commission.
A messy waterfall looks like: Sale price − appraised value − marketing expenses − staging − buyer concessions − carry − service fee − administrative fee = net overage. Seller receives X% of net overage.
The difference between these two definitions can be 3–5% of home value. Every deduction a program takes before calculating the seller's share of overage is seller money going to the program. In our sample transactions, QuickBuy and Opendoor have the cleanest waterfall language; Homeward and Offerpad have the most deductions.
Who can walk, when, and with what penalty. Standard language is that either party can terminate for material breach, with your earnest money returned if the program breaches. Confirm you have the right to terminate during a specific contingency window (usually the first 5–10 days post-signing) without penalty. This is your escape hatch if something changes.
Both sides make claims (“I have clear title” / “we have the funds”). Standard. Make sure you're comfortable with the representations you are being asked to make — some programs try to include broad non-disclosure clauses here that restrict you from discussing the transaction publicly.
Choice of law, dispute resolution, assignment rights. Usually boilerplate. The one item worth flagging: many programs include mandatory arbitration with a specific venue and arbitrator selection process. Your attorney will tell you whether that's reasonable in your state.
If you have only three minutes to read a PSA, read Section 4 (repair), Section 6 (carry), and Section 7 (waterfall). In our experience, 90% of the seller surprises that show up at second close trace back to one of those three sections having language more aggressive than what was discussed in the pitch.
Share it with us. We'll run it through this framework and flag the language we'd push back on.
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