The Arizona REALTOR® Residential Resale Contract (Contract) does not Require a Lender Fill out the Loan Status Update
In connection with the buyer’s offer to purchase, the buyer submitted a prequalification form signed by the buyer’s lender. The buyer’s lender, however, refuses to provide an LSU within ten days after Contract acceptance as prescribed by Section 2(e) of the Contract. The seller has therefore provided a Cure Notice to the buyer insisting that the lender sign the LSU.
Is the lender required to sign an LSU pursuant to the Contract?
The Contract at Section 2(e) provides that the buyer must provide the LSU within 10 days after Contract acceptance. There is no contractual requirement that the LSU come from a lender. Provided the buyer filled out the LSU accurately and in good faith, the seller is not entitled to issue a Cure Notice.