FACTS: Buyer and seller entered into an Arizona REALTORS® Residential Resale Real Estate Purchase Contract (“Contract”).  Two weeks prior to the close of escrow date, the buyer changed loan programs. 

ISSUE: Does the buyer’s change in loan programs require seller’s consent?  

ANSWER: See Discussion. 

DISCUSSION:

Pursuant to the Contract at Section 2k,the buyer is obligated to immediately notify the seller of any changes in the loan program, financing terms, or lender described in the Pre-Qualification Form attached with the offer or the LSU provided, within ten days after Contract acceptance.  The buyer is permitted to make any such changes without the prior written consent of the seller if the changes do not:

1. adversely affect the buyer’s ability to obtain loan approval without conditions,
2. increase the seller’s closing costs, or
3. delay the close of escrow.