FACTS: Buyer makes a cash offer to seller.  Seller accepts the offer and escrow is opened. Thereafter, the buyer decides he would like to get a loan. Buyer drafts an addendum stating that buyer will obtain a loan, but if financing fails for any reason, buyer will still pay cash and close on time.

Seller refuses to sign the addendum.

ISSUE: Can the seller refuse to sign the addendum allowing the buyer to get a loan?

ANSWER: Yes.

DISCUSSION:

Pursuant to the contract, when a buyer makes a cash offer, section 2 (Financing) of the contract does not apply.  Therefore, section 2k is not in effect and the buyer has no right to change the financing terms without seller agreement.