FACTS:                    

The buyer and seller executed an Arizona REALTORS® Residential Resale Real Estate Purchase Contract (Contract) to document their cash transaction.  Written into Section 8a of the Contract is a requirement that the buyer provide proof of funds within 24 hours of contract acceptance by the seller. Five days have passed since the seller’s acceptance and the buyer has not provided proof of funds. The buyer seems to be acting in good faith and has arranged inspections and otherwise behaved as though he is going to proceed with the transaction.

ISSUE:                      

Even though the buyer appears to be acting in good faith, can the seller provide a cure notice for the delivery of the proof of funds?

ANSWER:                

Yes.

DISCUSSION:         

Pursuant to the language written into Section 8a, the buyer is contractually obligated to provide proof of funds within 24 hours of the seller’s acceptance.  The buyer has thus far failed to provide any documentation as to proof of funds.  As such, the seller is entitled to provide a three-day cure to the buyer insisting that the proof of funds be delivered.