What Is Form 22AR? Washington Financing Contingency Notice

NWMLS Form 22AR is a Financing Contingency Notice used with Form 22A. It addresses notices involving financing protection, including the seller’s notice-to-perform and termination process where authorized by the signed agreement.

It is not simply a lender update or proof that a mortgage has been approved. Sending a notice or waiving a contingency can affect the parties’ contractual options. Before taking either step, the buyer, seller and their brokers need to understand the agreement they actually signed.

The Madrona Group’s approach: use the notice thoughtfully

We do not view Form 22AR as a form to send automatically in every transaction. When we represent a seller, the conversation usually starts with a concern: the buyer is not following through, the agent is difficult to reach, or the lender is not providing clear information. Hesitation and poor communication can leave a seller wondering whether the purchase is still on track.

Those concerns may be a reason to discuss a formal notice with the seller. They are not, by themselves, permission to send one at any time. We first review the contract’s financing provisions, the applicable timing and what the seller wants to accomplish. The decision should be deliberate.

When communication is productive and the loan is progressing, our preference is to keep working toward closing rather than create pressure without a clear purpose. Giving a buyer more time still needs to be considered against the seller’s goals and the existing contract. If a contractual deadline needs to change, the parties should document any agreed change appropriately.

Understand the notice before deciding how to respond

A notice to perform and a notice of termination do different jobs. Under the applicable financing provisions, a seller’s notice may ask the buyer to waive financing protection and create a path toward a later termination. Read the selected provisions and the actual notice together; do not treat every financing agreement as though it follows the same process.

This page does not supply a universal deadline. Use the signed Form 22A, any amendments and the current notice form to determine the applicable rights, dates and delivery requirements. For the broader explanation, see Form 22A and financing contingencies.

When we represent the buyer

Our goal is to preserve the buyer’s financing protection as long as the contract permits. That means preparing the response promptly, even if the buyer ultimately uses the available time before making the decision. Waiting should never mean discovering a deadline too late or leaving no time for proper delivery.

Before advising a buyer about waiver, we speak with the lender and seek confirmation that final underwriting has been completed. We also need to understand what that confirmation means: whether conditions remain, whether anything could still prevent funding and whether the loan is on track for the agreed closing date.

Then we discuss the risk with the buyer, including the possibility of losing earnest money if financing fails after protection has been waived. A reassuring conversation with the lender is important, but it does not replace the buyer’s informed decision. When financing is solid and the buyer understands and accepts the remaining risk, we can prepare the appropriate response with the buyer’s authorization.

Loan approval and contractual protection are different

A lender evaluates whether it will make the loan. The purchase agreement determines the buyer’s obligations and available protections. A waiver does not make the lender fund the purchase, and an underwriting approval should not be described as a guarantee that nothing can change.

As we explain during financing preparation, buyers should keep their financial situation stable through closing. Changes in employment, credit, debt or major purchases can affect the loan. Keep the lender informed and ask before making a financial change that could interfere with the purchase.

If the lender cannot provide the necessary confidence, we review the available contractual options with the buyer rather than treating waiver as a routine signature. Questions about disputed rights or potential liability should go to legal counsel before action is taken.

What we have seen in actual transactions

The Madrona Group has used this notice selectively on the seller’s side when the other side’s communication or follow-through raised concerns. In those transactions, receiving the response helped clarify where the purchase stood and gave the seller greater peace of mind.

The useful lesson is not that a notice guarantees a successful closing. It is that uncertainty needs attention. Sometimes direct communication resolves it. In other situations, the seller may decide that an available formal notice is the appropriate next step.

Keep the seller’s decision documented

Explain the available options and record the seller’s instructions, including a decision to hold off. Washington REALTORS® transaction-file guidance emphasizes documenting this advice and the seller’s direction. A clear record helps everyone understand why the chosen approach was taken.

Video: Form 22AR financing contingency notice explained

Use the video as background, then review the current forms and the provisions of your own transaction with your broker. Older examples may not match your signed agreement.

Common financing notice questions

Have a question about a financing notice? Contact The Madrona Group, or return to the Washington real estate FAQ library.