While it is always sound advice to be cautious, paying cash under the proper set of circumstances should not be problematic. When one considers the options of payment from escrow, bank check, personal chech, etc..., each presents an equivalent risk to cash in a bad transaction. The only distinction with the latter types of payments are the obvious paper trail should you have to subsequently produce documentary evidence. So, as long as you get such documentation
of a cash transaction, you have the same protections as with any other method, no more or no less. The only challenge to you would be to ensure that the form you choose to obtain documentation of a cash transaction be clear and unambiguous which, depending upon the vale, may be more appropriately created by your attorney.