If you’ve ever searched online for advice about selling your home to a “cash house buying company”, you’ve probably come across websites and so-called advisory services warning you about common scams. Many of these guides include long lists of “red flags” 🚩– things they say you should avoid at all costs.
At Seven Ventures Property, we believe in transparency. Some of these warnings are valid and worth paying attention to, but others are misunderstood or taken out of context. The truth is, not everything written online is accurate, and painting all companies with the same brush isn’t fair.
In this blog, we’re going to walk through 9 of the most common “rules to protect yourself from scams” and share the reality behind them. We’ll explain which ones are genuine red flags, and which are not always bad – especially when used correctly by a professional, ethical company like ours.
1. You’re Asked For an Upfront Payment
Claim: Walk away if a company asks you for an upfront payment.
Our response: ✅ TRUE. You should never be paying upfront fees to sell your property. A genuine cash house buying service won’t ask you for money to “get started” or to cover admin costs. At Seven Ventures, there are no fees whatsoever – no hidden charges, no upfront costs. The whole point of our service is to give you certainty, not to drain your pockets before the sale has even begun.
2. Cancellation or Withdrawal Fees
Claim: Avoid companies who charge you a cancellation or withdrawal fee.
Our response: ✅ TRUE. A genuine buyer won’t tie you in with a cancellation penalty. At Seven Ventures, if circumstances change or you decide not to go ahead, we won’t punish you financially. Our aim is to build trust, not trap you in.
3. Option Agreements, Lock-In Contracts or RX1 Forms
Claim: Be wary if a company asks you to sign an “option agreement”, “lock-in contract” or RX1 restriction.
Our response: ❌ FALSE – but misunderstood. Yes, these can be misused by rogue companies. But when used properly, they are not scams – they are legal tools that protect both seller and buyer.
At Seven Ventures, we sometimes use option agreements and RX1 restrictions in very specific cases, such as when we are paying sellers cash upfront before completion. Why? Because:
- It guarantees your sale – you know we are committed, and you’re not left hanging.
- It protects us from situations where sellers sign agreements with multiple companies at once.
- It shows we are genuine buyers willing to put skin in the game (providing a cash advance)
Handled correctly, these agreements can actually give sellers more security, not less.
4. Guaranteed Sales Close to 100% Market Value
Claim: Don’t trust anyone who promises a guaranteed sale at 100% market value.
Our response: ✅ TRUE. If a company claims this, it’s a red flag. To offer a fast sale service, there needs to be a benefit for both parties. Typically, offers will be below market value to reflect the speed, convenience, and certainty you’re receiving.
At Seven Ventures, our approach is different. We lock in the offer we give you – we won’t lure you in with a high number and then reduce it at the last minute (a common trick in the industry). The offer we make is written in contract and is the price you get.
5. Claims of Government Regulation
Claim: Watch out if a company says they or the industry are “regulated by a government body.”
Our response: 🔸 PARTLY TRUE. The industry isn’t directly regulated by a government body. But reputable companies (like us) will hold:
- Professional indemnity insurance
- ICO registration (data protection)
- Property redress scheme membership (complaints process)
- AML (anti-money laundering) compliance
These demonstrate professionalism, but beware of companies who use the word “regulated” loosely. The key is transparency – always ask to see certificates or memberships.
6. Selling to Investors at 90%+ of Market Value
Claim: Be cautious if a company says they can sell your house to investors for 90%+ of its market value.
Our response: ✅ TRUE. To run a viable business and provide sellers with a guaranteed fast sale, there has to be margin. Selling at 90–95% of market value simply isn’t realistic. A trustworthy company will explain this openly. At Seven Ventures, we’re always upfront about how the numbers work – we believe you should understand exactly how and why the offer is what it is.
7. Restrictions on the Title (Land Registry)
Claim: Never allow a company to place a restriction on your property title.
Our response: ❌ FALSE – again, misunderstood. Like option agreements, title restrictions are sometimes necessary and fair. At Seven Ventures, we may use this method when paying cash upfront to sellers. It protects us from financial risk if another buyer appears after we’ve already invested in legal costs and have provided a cash advance.
But here’s the key difference: we explain everything clearly before you sign. You’ll know exactly why it’s being used, what it means, and how it protects you as well as us. A scammer won’t be this transparent.
8. No Visible Company Registration Number
Claim: Walk away if a company doesn’t show a Company Registration Number.
Our response: ✅ TRUE. Any genuine business in the UK should be registered with Companies House and should display its company number. At Seven Ventures, our company details are clearly visible – nothing to hide.
9. Proof of Cash Funds
Claim: Avoid any company that can’t show proof of funds.
Our response: 🔸 PARTLY TRUE. If a company is buying your property directly, they should be able to show proof of funds straight away.
However, many companies (including us) also work with vetted Investors. In these cases, proof of funds may not be available immediately because the specific Investor may not have been assigned yet. What matters is that:
- Investors are fully vetted in advance.
- Proof of funds is available once the buyer is identified.
- The company can clearly explain the process to you.
At Seven Ventures, we’re upfront about this from day one.
Final Thoughts: Knowledge is Power
Not everything you read online about selling your house fast is accurate. Some “red flags” are real dangers, but others are simply misunderstood. The truth is, these tools and agreements can be perfectly legitimate when used fairly and explained properly.
At Seven Ventures Property, we pride ourselves on being transparent and honest. We’ll walk you through every step, explain why certain documents are needed, and always make sure you feel comfortable before signing anything.
What makes us different?
- No fees, ever.
- Genuine offers that don’t change last-minute.
- Options and restrictions only used fairly, when cash upfront is involved.
- Clear communication at every stage.
📞 Contact us today for a confidential, no-obligation chat about your situation. We’ll give you the facts, answer your questions, and help you make the best decision for you.